The daily gazette. [volume] (Wilmington, Del.) 1874-1883, 1881-02-26
SECOND EDITION
From the World.
CON RESS AND THE BANKS.

The things which banks and bankers
have right to do when they see or fancy
they see their lawful interests imperilled.
and the things which banks and ban kers
have 10 right at any time either TO do or
to attempt TO do, aud which they
assuredly VIII not in this country and at
TINS time be permitted to do.
The managers of a bank, have a right,
in the interest Of the stockholders. at
any time 10 withdraw its circulating
notes or any portion Of them, and TO
connne It's operations to the receiving of
deposits and the loaning OF money.
But II, under, the pretsnse Il getting
immediate possession OF their bonds and
Withdrawing the whole or any part of
their circulation bJ reason of impending
legislation, banks or combination Of
banks threaten to deposit or really
deposit greenbacks In the Treasury IN
order 10 create financial disturbance
IN the country whicn may coerce or
alarm Congress into refralning from
repeal of the law of 1874, the banks or
tue combination of banks so acting de.
serve TO receive and will receive the
sharpest public condemnation.
1t is necessary for the law-making
power in Washington to authorize the
emission of new bonds out of the pros
ceeds of the sale of which to paw the
maturing tives and sixes. CONGRESS-
has deliberated long and patiently over
the rate of interest which those new
bonds should bear, and it has finally
decided, properly as the World thinks,
that they shall bear only three per
cent. Congress has also decided that
the bank must use such bonds in pur-
suance OF the PROVISIONS of the Bank
ing law enacted by a Republican Con-
gress in 1864. The banks naturally
would have preferred three and a
half per cent bond to three per cent
bond, and the backs would also
have preferred to remain under the
law Of 1874 rather than to go back to
the law of 1884 under which most of
them in this city came into being.
The banks had perfect right to urge
these preferences upon Congress. The
wishes of the banks were ADEQUATE
and emphatically represented by
Comptroller Knox before the Finance
COmmittee of the Senate. His opin-
ions respecting Mr.. Carlisle's amend
ment and his official denuneiation of
that amendment we're published in the
newspapers of Washington and of the
country. He eulegized the amend
ment of 1875 which favored the banks
by repeating the law which required
a reserve as against circulation, aud by
permitting the withdrawal of bonds
and The reduction of circulation at the
pleasure of the banks on a deposit of
greenbacks in place of the bonds. But
the Senate finally fixed ON the three
per cent. rate and repealed the fourth
section of the law of 1874 after having
heard the banks and Comptroller
Knox. A few trihing amendments in
the House bill sent the bill back to the
body in which it originated. There
upon certain officers of certain banks
at once began, it is believed, to con-
spire and combine to produce such
condition of trade and business as
might terrify the House into adopting
amendments of the measure which the
Senate had refused to adopt after fair
Argument
Ali such bank officers may rest assur-
ed that the only effect of such
course will be to injure, not themselves
and their own banks only, but the Off
GERS and the share holders OF banks not
represented in their combination. Meth
er the country nor Congress will consent
OF should consent 20 be bulldoEed into
or out of legislation by handful of
banks, above all when the sharehode. s
OF those banks have not been consulted
in the operation. Bank officers who
have mbined together to create fioan-
cial alarm as a means of influencing leg
islation by Congress in the own favor
ought to be branded as selfish conspiIa-
Tors bent on impeding the orderly course
of legislation at Washington. Such
men ought to be taught by conserva-
tive public opinion that their conduct is
a direct encouragement to communists
and communism of the most dangerous
sort, not only because Of its tendency TO
influence the unrefeeting hostility
against all corporations of which wind
bags like Senator Window are the nat
ural mouthpieces, but because il pro-
ceeds OH cemmunistic methods to ali
anti-social end. We repeat that If bank
officers, anticipating The enactment of
the Funding bill as 1t passed the Senate
by q vote of Two 10 one, see ht TO take
steps in good faith to withdraw the cir
culation of bank, they are acting with
in their rights. But If the officers of
aDy bauk deposit greenbacks with the
Treasury OH pretense OF withdrawing
circulation, but really TO create cur
rency panic in order TO alarm Congress
that is punishable conspiracy which
ought u be resisted by Congress at any
risk whatever Of temporary financial
panic. No possible fall in the plice OF
bonds and shares can be SO disastrous to
the permanent welfare of the country
as legislation under q factitiou7 fipan-
cial pressure put by class upon the
| re epresentatives OF the people.
The legislation OF 1874 really was and
was int ended to be legislation In favor OF
imitation. 1t established a redemption
bureau in the Treasury. 1t reduced the
| bank reserve 10 be held on the account
OF circulation to five per cent, and II
thereby SO far enriched the banks. II
enabled the banks to get possession of
their pledged bonds by depositing green
| backs. IL di away with a valuable feat
ure of the scheme devised by Mr.. Chase
| iu 1864, and did away with 1t distinctly
| inthe interest of the banks. A Demo.
| cratic Congress now only proposes 10 90
back to the ideas adopted by Repub.
| lican Congress in 1864 respecting the
pledged bonds and the withdrawal OF
circulation. The national banks were
| created and the State banks were taxed
/ out of exists nee quite rs nuch to aid in
floating bonds as to provide a sound
| circulating currency. 1t is very likely
| tba, the course of certain bank otficere