Savannah morning news. [volume] (Savannah) 1868-1887, 1881-01-22
The National Baaks aud The Refund
ing Bill.


Il seems that the national banks and the
Greenbackers are the two most earnest
opponents Of the refunding bill which
recently passed the House, providing for
funding about 500. OO0. 900 Of the pub
lie debt in bonds and certificates bearing
8 per cent. interest. The former base
their opposition on the ground that they
cannot afford to issue notes on deposit
of bonds bearing so low q rate ofinteFest,
and the latter oppose the measure be-
cause they say they do not want the debt
refunded at all. They desire 1t paid OF
at once in fat money, 50 that both debt
and national banks may be wiped OUT
Immediately.
We see it stated that the banks are
manifesting their opposition tothe meas
ure in q way which is likely to prove
troublesome should they persist in it
They are already beginning to reduce
their circulation by selling the bonds
which they have on deposit in the Urea
sury to secure such circulation, so that
they may realize the premium which
these bonds command, and it is
intimated that they will, in case
the funding bill becomes q law,
sell at least one half the $200. 000, 900 of
the and s per cent. bonds which they
control, and withdraw the notes issued
on them. The effect of this would be
evident. There would be experienced
at once a violent contraction of the cur
rency, a stringent money market would
inevitably follow, and there would re-
suit period Of general financial and
commercial disaster. The power Of the
national banks, when they unite for
any purpose, was never more conclu-
siVely shown than by the distress which
the Eastern banks threaten the country
to prevent the passage Of this bill.
Discussing the dangerous position
which the national banks have assumed,
the St. Louis Republican,, in q recent
forcible article, says: mo one will deny
to the banks the right Of judging for
themselves on what terms they can
proftably issue notes; but il will be IN
fortunate for them if they shall prove
that the national banking system is in
compatible with the interests of the gov
eminent in reducing the rate of interest
on the national delft. They say they
cannot furnish a circulation based on
bonds bearing three per cent. But what
about the profits they made in furnishing
a circulation on bonds bearing nine per
cent-six per cent in gold, worth
fifty per cent. premium? They were
chartered with the understanding that
they would provide the country with
safe. sound national currency, and they
have even advocated the permanent
withdrawal of the greenbacks so as to
present a wider field for their notes. In
short, they have asked the government
to give them a monopoly of the business
of supplying the people with paper
money, and it is not little inconsistent
with this conduct to see them now me-
nacing the country with a withdrawal of
their notes for the purpose Of defeating
a measure dictated by public policy and
the interests Of the people. Do the
Eastern banks expect the people of
the United States not only to maintain
an enormous national debt forever, but to
pay an excessive rate of interest on it
for their exclusive benefit Must Con
gress forbear to reduce the interest rate
on the national debt from to per
cent merely because a creature Of its
own making stands in the way? If one
half the country's paper money supply is
so completely under the control ofthe ma
tional banks that they may contract it,
or expand it, and even withdraw 1t en-.
tirely SIS a means of influencing legtsla-
ton at Washington, it is well for the
public to know the fact at once.