Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1881-03-24
Our National Bank Policy.

lu' N'Hl'h"H'i'
The national banks rather overd'd
themselves last week. Supposing that
they were masters of the situation,
they had hoped to drive the country to
their terms by a contraction of the cir
culation. During the week from Mon
day 81, to Saturday 26, they surrender
ed 1902, ,929, contracting the curren-
cy to that amount, which they threaten
to continue. Fortunately they could
do no worse; many of them had loans
in the country which rendered sud-
den deliyerance of their circulation
impossible. Secretary Sherman, very
unnaturally, for him, came to the res
cue by offering to redeem $25,0OO,00O
of bonds which would have liberated
IN amount of money greater than the
contraction. The singular righteous
action of the Secretary of the Treasury
is not hard to account for. lie could
not afford to 90 out under cloud; he
must leave the country in prosperous
condition and selfish interest compelled
him to he just.
Nothing has tended so to awaken
the people to the danger Of this insti-
tuition us their behavior Of last week.
The people see now as they have never
seen before, the peril of allowing a
syndicate of corporations to control our
finances. Jay Gould once said that
the banks were prepared to act at a
moments notice, and act strongly, and
it is evident that they thought the time
had come last week. That the banks
have it in their power to temporarily
derange business by withdrawing their
circulation, there can be no doubt, and
but for the wholesome education re-
ceived by the masses from the national
greenback party, they might be able to
bring upon us panic of long duration.
The greatest objection to the fund.
ing bill seems to be the Carlisle amend
ment, which provides against sudden
contraction of the currency by demand
ing that the bankers shall deposit, in
stead of other notes and money, their
own notes before retiring their circula-
ton. These notes being scattered
broadcast over the country cannot be
collected and returned in a moment.
1t was natural that bankers having
the ability to create panics on the
shortest notice and thereby reap large
profits, should be opposed to any
change depriving them of such priv
ilegcs.
The policy of putting ourselves at the
mercy of a monopoly of bankers, who
may ruin all our industries whenever
it will be to their interest to do so is
one of the most insane policies ever
pursued by any people. The best of
bankers are only men, and they will
furnish us money only so long as it
is to their interest to do so. When by
contraction of the currency they can
gather in the products of the country
ut reduced prices it will be to their in.
interest to do so, and they will do it.
OF course they will not continue to con-
tract the currency. 1t does no good to
sqeeze a dry sponge. After they have
swept the country of all its wealth, ii
will be to their interest to initiate the
currency and start the wheels of pro
duction. When a farmer shears his
sheep he lets the wool grow; but he will
expect to clip the earnings of the in.
dustrial portion of community periodi'
cally.
In some respects it hardly seems
probable that the banks will make an
immediate panic. The indications are
that with Garfield at the head Of ex-
ecutive affairs, they will have ample
time after two years accumulation to
draw in the products of the country,
If there were any doubts about the
continuation of the lease of their ex'
istence, we should expect them to make
the most of present opportunities.
Nothing is more certain, however,
than that national banks must gol
Their doom is inevitable. All through
the country there is growing feeling
that corporations have no right to con-
troll the commercial intercourse Of the
country; and the late panic on Wall
street has intensified that feeling.