The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-01-25
The National Banks.


,.na wide.spread feeling that Congress oas
granted TOO many prix ileges 10 tne na''o""
hanks. The grievance most seaeraiiy pre-
sented TO the public IS the fact thae 'he
hanks are allowed to issue for cufiehc!
notes based upon bonds apon Which,
Though deposited at Washington, tue DanSs
are allowed 10 draw interest. MI ioooA'
of Pennsylvania, cites this fact as an Has
trafIon OF the truth OF The scriplufa' sV'"'
ment, :. He that hath, to him sha'' DC give"
but he that hath not, from h'ih spa'' w
taken even that which he hath"
There Is a curious confusion OF ideas IN
VOWED in the complaint OF which we are
soeak,ng. IL reminds Us OF the irish MOP
that burned the notes which BANK nou
refused 10 redeem in specie We would DE
willing TO Join hands with Mr. locuM' or
ANYBODY else, in taking away from tue
hanks any Of the privileges which they are
not Justly entitled .o-any, In 4 word' "n'ch
were granted for their special behoof, ana mol
for the benefit Of the public, aud which are
detrimental to the interests OF the commu'
nifty at large.
Let us consider Mr.. YocUM's grievance.
Tn whose inierest are the banks required 10
deposit 100000 of bonds to secure every
soO. 400 OF circulation they put outI surely
not in their own. They would prefer 10
teen their own bonds in their own hands,
and issue as much currency as they choose.
The requirement was put into the natlohai
banking law wholly in the interest OF the
Government itself and OF the pubic at
larre-and no doubt against the protest
NJ tho bankers. IL insures to the holders
Of the notes of the banks absolute immunity
from loss. and establishes throughout tue
country that perfect confidence IN the cur
repcy which is indispensable to the success
ful prosecution OF business OF every sort.
II made. too. q market for the Goyernmene
bonds at a time when those bonds were not
willingly taken at par by anybody.
There is no excuse for anybody IN Nir-
ginia who is misinformed on this point.
The old banking system In this State had
before tie war been partially SUBSTITUTED oy
n system similar In many respects 10 the
national banking system now IN existence.
The new banks were required to deposit
Virginia bonds with the Treasurer OF the
Commonwealth, who thereupon issued to
the bank circulating notes countersigDed by
himseli-whether equal in amount TO the
bonds deposited, or not. we do not now re-
member. This law protected the note
holders, and strengthened the credit oil the
government endorsing the notes-exact'y
the two objects accomplished by the present
national banking system.
Let us suppose that this feature OF the
national banking law we're repealed: What
would he the RESULT How would The note
holders be protected! II could not be done.
The laws OF trade are as irresistible as any
Others OF the laws OF nature. The Govern
mept cannot make fiat money which the
people will take at par; nor can the banks
make such money; nor can either Congress
or the mob compel banks to issue currency
which is known TO be good, and which
every body will accept with confidence. I'M
less the owners OF the bank deem 1t profit
able to do so.
Will II be said that Congress ought TO re-
fuse to pay interest upon the Government
bonds whilst they remain In the Treasury
What Justice would there bein that The
Government has received the value OF the
bonds, and nsed the money, and Justly owes
the interest. II the banks were not allowed
to draw this interest, they would OF course
refuse to own the bonds, and then the in
terest upon them would have TO be paid &c
other parties. Who would be the fools tha'
would pay hundred thousand dollars In
money for bonds having a iace-value oil
that amount, aud then deposit those bonds
In Washington as means OK buying the
privilege of issuing ninety thousand dollars
of notesr II the bankers desired 10 lend
money. and were not idiots, they wouC
lend out the whole SUN Of one hundred
thousand dollars and not buy any bonds at
all.
But the Government might provide by
law that there should be no banks except
such as would deposit bonds and allow the
interest upon them to cease whilst so de
posted? Then there would soon be not {
single bank OF issue in the United States
And who would be injured? The very
people who now fall to recognize the bank
as their friends. The inconvenience, an
noyanee, and useless expense that woult
result TO the entire community would sOor
cause a repeal Of the silly laws which sucl
men as Mr.. locuM would have Congress
pass.
Let the Government issue all the cur
reucy itself. says Mr.. DE LA MATyR. .Tha
would do very well Just now, and as Ions
as the credit OF the Government shall con
. tinue rs now. But let war come; let UNCLl
SAN he forced 10 20 iato the money msfke
aud borrow thousand millions Of dollar
to carry on war against Great Britain, O.
Germany, or France. or Russia, or agains
any two or more OF them, and his want o
credit would 5000 be shown In the depre
elation Of bis greenbaeks by twenty. thirty
forty, or fifty per cent. Greenbacks are a.
good % gold now; but on the da'
the battle OF Gettysburg was Tough
they we're worth In gold only one fourtl
Of their face-value. Nobody can forese
what troubles Government will have =
encounter, nor how som its credit ma
be impaired BY unexpected occurrences
Therefore, no government shonid issue pa
per money 70 serve ~ q natlon's curren
cy. The whole duty Of . government q
10 The currency has been performed whei