Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1881-12-29

HS 7 UNOItu EdlNlliB SIdSos
Brooklyn Eagle
Those who desire TO embark in the
business of banking should be COM
PEELED to use their own money, as ciLi-
zens are obliged to do who 30 into any
other kind of business. If five men
join together in Brooklyn to manufac,
ture hats, Or cloaks, Or steam engines,
and agree to employ one hundred
thousand dollars in the busiress they
must put up their money. They have
no claim upon the government for as
sistance. If five men desire to put up
one hundred thousand dollars 10 ts-
tablish bank in Brooklyn for their
own profit, they can turn their capital
into three and half per cent bonds,
and by depositing these bonds with the
government, the government will give
them $4,000 in currency in exchange
for them, and the bonds deposited will
draw interest, just rs if the bankers
had chosen TO place them in their own
vaults, or in Il box in 4 neighbOring
safe deposit company. Is not this max
ing distinction against the manufac-
turer and in favor of the banker? Is
it not creating favored class in this
country, and u class with q distinct in
terest, since their business would be
made more secure and more profitable
by any misfortune which should COM
pei the government to increase its
debt, and to strain its credit, it might
be Il struggle for its own existence.
But it may be said, and it is said, that
the issuing Of currency is no longer
profitable to the banks and that, there.
fore, it is not worth while to interfere
with them in This respect. Well, ifthe
issuing Of currency is not u source Of
profit to the banks, why is ii they in
sist 50 resolutely upon the continuance
of the privilege?
Whether the issuing Of currency is
profitable to the banks or not, it would
be exceedingly profitable to the govern
ment. Suppose congress, during its
present session shOuld-as we trust il
will-decide to take away from the
banks the privilege Of issuing paper
money altogether. 1t could supply the
place Of bank notes Withdrawn by
treasury notes, and with these treasury
notes the government could eytingush
three hundred and fifty millions Of the
"optionable" three and Il half per cent
bonds. The volume Of the currency
would not be increased by dollar.
The business Of the country would not
be disturbed at all. The government
would become responsible directly fol-
the redemption of an additional three
hundred and fifty ymillions of notes, and
is now responsible indirectly for the
ultimate redemption of an equal
amount Of bank notes. 1t may be said
that the banks arenow in q position tC
redeem their own notes in gold. in The
, event of panic, growing out of de.
sire to obtain gold for paper, the banks
, have it within their power to depletC
the federal treasury Of its coin and tC
bring disgrace upon the government
while keeping every dollar Of their coir
reserve intact. The government can
, by resuming its constitutional duty, tC
, provide the people with their currency
extinguish three hundred and fifty mil
lions Of its bonded debt, and the pres
, ent surplus of the government for ;
single year will place the treasury in a.
good position to meet any demand thai
may be made upon it for coin for il
nntns ns IL is tn.lnu