The daily gazette. [volume] (Wilmington, Del.) 1874-1883, 1881-02-24
From the New York Star.
THE NATIONAL BANKS MUST BE
TAUGHT A LESSON,

The proposition for refundlnR the out.
standing United States bonds in 81 per
cent, thus effectiBg Saving In interest
of $1,000 900 year. Is being vigorously
attacked by the batIonal banks, whose
officers are seeking to coerce Mr.. Hayes
into a veto. They threaten, in ease the
bill becomes a law TO surrender their
entire circulation at once, aud run the
rlsk of panic by creating stringency
in tie money market. The CleI Gland
Clearing Ii ouse forwarded "a dispatch to
Mr.. Hayes, declaring thet the passage of
the bin with the fifth section IN Its press
eut form. "will prove disastrous to the
business prosperity OF the country, md ex-
pressing a hope that the President may
see his way clear 10 Interfere aud veto
the bill should 1t pass"
This course had its origin In this city
the New York Clearing House on Sal
urday having decided to recommend all
national banks 10 surrender their circu.
lation; and TO give an evidence of good
faith, the First National Bank took the
initiative. The result was that the fol-
lowing named banks sent formal notices
20 Washington of an intention TO retire
tLelr cITcuIdtlon:
First National ...............$ $3.50 600
American Exchange. 472 900
Merchants ExChanRe............ 5000
Third acknowledgements. SUI, 900
Chase National........... go 600
Total. ...........,.......: 1850, 900
OF course to retire circulation means
a surrender oy the Treasury Department
OF the bonds deposited by the banks to
secure circulation, which, at 80 per cent,
would require the Secretary of the
Treasury TO turn over to these banks
So 1886 600 four per cents. AS these
uouds have advanced in value l0BSr cent
since they we're deposited, tlA national
banks above named win be afle TO clear
net profit of $3.50, 800, beside the 4 per
cent INTEREST Queen the coupons until
they shall be called in should the new
tundinK bill become law.
The earlier national banks deposited
seven -fortles, which subsequently were
| funded for skies; they in turn for tives,
aud the latter for per cents. Previous
funding bills permitted syndlcates To bs
formed to purchase the bonds, and no
com plant was urged at the reduction
in interest; but when these syndIcates
became so strong that they could brow
beat, if not absolutely own and control
a Secretary of the Treasury, honest and
| sagaCious statesmen saw the absolute me-
cessity of legislatiug in the interest of
| The masses. The new Funding bill
/ struck fatal blow at syndicates. Theu
1 It was that the national banks began to
practice tue game of bluff, and thus was
followed by an open threat OF demorali.
| cation unless their demands were com
| Piled with.
This looks very much like an open at
tempt on the part of the nauonal banks
to buldoze the House of Representa-.
lives into defeating measure VIII ch the
almost unanimous voice OF the people
demands. Corporations have done Il any
bold things of late, but nothing more
| brazen has been attempted than this
threat of the creatures u Congress to
| infimidate not only the law-maklng pow.
er which called them into being, hut the
| Chief Executive, whose sworn duty 1t Is
to enforce the laws. Nc one denies the
night OF national banks 10 retire their
currency and TO cease to be banks of cir
sulatlon, and If such "A step were taken
by slow degrees II would create no feel
ng Of distrusl; but when an attempt Il
being made to clog the wheels Of legis
iaron by hreats OF an entirely causeIes,
panIc, simply because the financial reyo-
Iutiouiets hold COntrol Of hundreds oil
millions OF dollars in aggregate capital
II becomes a question OF earnest cOusld
eratIon whether the tune has not arrived
to sweep away the entire national hanl
system.