The daily gazette. [volume] (Wilmington, Del.) 1874-1883, 1881-03-12
From the Philadelphia Telegraph.
The National Banks At the Came
of East and Loose.


These institutions, which were create
by the country, which exist by It's suffer
ance, and which have waxed exceeding
ly strong and fat upon the extraordinar
privileges bestowed upon them by tn
country, when they were lately Gale
upon, through the provisions of the Re
funding bill, to bear their equitable par
of the burden of refunding such portion
of the national debt as are now due, O
shortly to become due, combined anC
conspired against the power that haC
created and fostered them to defeat tn,
plans for refunding. This they did re
| gardless of the disaster 1t would entail
upon the business public, who we're thei
customers, and upon the National Urea
sury. 1t is estimated by competent anc
trustwo rthy authority that the aggregate
loss to the public through the fall Of
securities IN single day, that Of Febru.
| AIRY rs, result from the withdrawal oil
$17,000,000 Of their circulation of the
currency, was not less than $50, 1000, 900;
TO that must be added the annual loss to
the Treasury of $l2, 100000 while the {
per cent. and 8 per cent. bonds of 1880
and 1881 remain unrefunded and unre-
deemed. The Refunding bill was defeat
ed by the terrorism, deliberately created
tor that purpose, of the national banks.
1t was not only that they together with
drew SIT, 100000 of their circulation in
ORDER 10 create stringent condition OF
the money market, to the great loss of
investors in securities, and The embarass-
ments, distress, or ruin of merchants and
fNfh hon h,,N To- l,sn
banks had not Withdrawn oEe-tenth part
Of their circulation, or in other cases
where none had been withdrawn, the
banks refused their Oldest and most re
liable customers, who from their stability
and froR long aud invariable usage, had
d right to expect il, the necessary &C
co.'s Rodations. This they did upon the
pretense that money was scarce, although
their vaults were filled with il, aud
which they had made scarce for The pur-
pose OF bringing ON financial panic, tor
the further purpose Of etiectlng the de.
feat of the Refunding bill. They would
on Friday, the 18th Of February, have
created panic of the largest and mcst
rntnous proportions, if Secretary SHEER
man had not thrown over $4,000, 900 of
currency into the maket TO bill toe
vacuum they had caused; aud beG It not
Deed for Secretary Shvrpsn's prompt
action, that Friday you'll have been
made by the nat'saal banks one of the
blacklist, f:Aucially, ever known in the
history of the country.
Having teri orized the business Gem.
munity, and induced 1t to demand for
its protection against the national banks
the veto of the Refunding bill, thereby
accomplishing their purpose of retiring
parts OF their circulation, the bank at
once impudenty demanded that they
should be permitted to receive again
their retired notes The new Secretary
OF the Treasury and the President had
not yesterday determined what answer
the Government should make to this
demand of the banks for the restoration
of their circulation, though it seems in
explicable that either the Secretary or
the President should hesitate one instant
as to what the answer of the Govern
ment should be. For two or three DAYS.
that 10 to say, Oh the 23d, oath and
18th of February,-busines men were
compelled, in both New York and Phil
adelphia, and probably elsewhere, 10
pay as high as per cent. per diem for
the use OF money, and all because the
national banks combined and consplred
to lock up money aud make 1t scarce,
In order TO defeat bill which, while it
would entail loss of few thousand
dollars at most upon the richest of them,
would effect saving to the country of
Sl2,0OO,OO0 annually. If the evil began
Anhn1 mil no 1aFa
kefundlng bill, and the furry and losses
TO the business public and the country,
the Government might overlook the
single otfense of the national banks,apd
agree to promptly restore TO them the
circulation they withdrew, and which
they now ask shall be restored to them
but If the Government should accede To
their request and permit them TO receive
again their circulation, what possible
security can the Government or The
business community have that nett
month, or next year, or at any time, the
banks Will not again combine and con-
spire together TO retire millions of their
circulation, and 50 produce another
financial panic or Friday black with the
ruin and distress Of holders of securi-
Ties or of business men?
II the precedent be once established
that the national banks can retire tens
or tweutles.of millions of their clrcula-
ton one week and have 1t handed back
TO them next week by the Government.
they are likely 10 become the most
dangerous power in the country. They
can play fast and loose with the public
precisely as they play fast and loose
with their circulation. The national
~ 10 hFaWr N,FaI , 1,s..-
featinR a most necessary act of Congress
and by depreciating values in single
Jay iron 10 20 per cent. They showed
u almost TO the extent of producing a
financial panic, which, had IL not been
stayed by the Treasury, might have
created period OF common business
disaster. They dld 1t not only without
adequate Cause, but for the most selfish
purpose. Now the Government sbonld
sho" its power; 1t should make it plain
10 the banks that they are not aunerior
10 the power hat created them and thot
Sustslhs item they are rot superior To
law and public oplaion and lust busine
methods. They saw titin order to save
70 each OF them few thousand dollars
dnnudllo of profits to,prevent the refund.
ing Of nearly S7c0,000,O0 of bonds nav
Ing per Mt or per cent, TO entail
/ upon the Government an annual loss OF
10 lions, upon The Du-iness and invest
ing community 500 900 900 ic a single
day ald they should be made to feel
that they cannot do these things with
impnDity' Their retired circulation
should remain reIlred until they have
shown proper degree of repentance
| and until the Government has received
from them satisfactory assurances thai
they will not again euter Into a con
spiracy to make the rate of money ]
per cent per diem. Either they or the
GovernFneDt rnnst ba strangar ~.