The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1881-01-22
THE NATIONAL BANKS.
Views of a y alwart Greenbacker Thereon.

Late in November last after the result of
the presidential election was known, John 5.
Armstrong, Esq, a widely known National
Grecnback politician of this county, addressed
letter to the Hon. Warwick Martin pro-
pounding the following question:
/. Does the Secretary OF the United States
Treasury receive the circulation of national
banks in payment for bonds by hlmg
2. Was not circulation gwen gratutouslyto
national banks, and Is not the engraving and
printing of the notes done AT the expense OF
the people,
3, Have not the plates and printing for these
bank notes cost S5,000,O0O, beside the interest
on the bonds upon which the notes arc issued?
4. Has not the circulation already cost the
people of the United States $1S,00000O per
annum for the last sixteen years, and i'll all
more than $300,000000:
s Have the banks paid any and what taxes?
o. Had not this money better have been
given to the poor? Would 1t not have been
more charitable?
Z. Why should we DC compelled to support
the rich paupers, instead OF the poor ones?
Please give us some information upon these
matters, aud oblige your old friend,
JOHN S. ARMSTRONG.
70 which Mr.. Martin published in the Ma
ttonat VieD washington, d. g. the following
response:
| will answer your questions to the best Of
my ability, | will number my answers to
avoid repeating your questions, the number
corresponding with yours.
/. The law of 1870, authorizing the issue of
the 5, AZ and per cent bonds, contemplated
their payment to the Government either in
in orr on hnnlS Tina frSt nj nf the
Secretary of the Treasury was to sell all these
bonds in Europe for CON- to bring the com to
the United States, and to pay the 5.20 bonds in
CON. But the Bank of England soon put a
stop TO this operation
The war between Germany and France was
then gong on, and 1t intericred with invest.
ments. Mr. Boutwell, could not sell his bonds
aud obtain his large amount Of coin These
sales were delayed until Mr. Sherman came
into the Treasury. He sold enough 5 and 411s
per cent. bonds for com to enable HIM to ac.
cumuae about 800, 100000 coin for resump-
ton purposes All bonds previous to this had
been sold fer legal.tender notes and were paid
for therein. No bonds had been paid for IL
CON. The per cent. bonds were sold under
the law for coin IN 1878 and 1879 but after
lst of january, 1879, none Of the bonds sold
were paid for IN coin. Mr. Sherman decided
| that us the legal.tcndCr notes were after thai
date payable III coin and the national bank
notes were payable in legal tender notes, that
he would receive these notes for the per cent.
bonds. The national bank notes as well as
the legal tenders were SO received. Had not
been for tins agreement, the bonds could not
have been sold in the United States The coin
was not here. But when the Inleresta and prin.
| cipal of the $50 bonds bonds came to he paid,
the national bank notes were not received by
the holders for The money coming to them.
They demanded and reCelyed legatcndei
notes for over $GU00000O0, principal and in
tercSt, due them. The law of March IS 1869,
provided that these bonds should be paid in
coin or its equivalent. Lcgatender notes
were, after the LIST OF January, 1869, and in.
deed, to some extent, before that time, received
for duties on imports; but the national bank
notes were not then, and are not now, Yeceivn-
| ble for duties. The former were and are, and
the latter were not and are not equivalent To
com, Mr. Sherman had, therefore, the right
under the law Of March IS, 1869, to pay these
5.2O bonds in icgal-tcnder notes, and the hold
ers Of the Government obligations preferred
them 10 gold. Mr. Sherman states this III his
last annual report.
2. The national bank circulation was more
than a gratuity on the part Of the Tn ted
States. A large annual bonus was and is paid
by the United States to the stockholders OF
these banks for accepting this circulation from
The Government, and loanng it out to the peo.
pie at tiOm to 10 per cent interest
In 1916 the old bank of the United States
paid the Government Sl,500,000 for Il charter
running twenty years, with Il capital of only
$35 100000, and was CAD 10 emhrance the OPP.
portunty. AT the expiration of That charter
this bank would have paid bonus of IS 0O0,.
600 to obtain its renewal. But General Jack.
son was then President. He knew too well
the dangers OF such an institution, and he We.
toed the bill alter Congress passed it by votes
Of both parties
The notes OF the presen. national banks are
printed, assorted and redeemed at the expense
Of the people. Hundreds of men and women
are employed at that business, the salaries of
whom are paid Ivy the people. The plates and
'engravngs were for a long time done at the
expense OF the people, but the new plates re-
Gently made for these banks are charged to
them. The expenses connected with these
banks are paid by the public. These expenses
incluue the salaries Of the Comptroller of the
Currency and the other employees of the u
reau. What these separate expenses amour
To per annum we are not able to state The
information is kept secret even from Congress
The writer at the last session of Congress
through Mr.. De La Matyr, caused IL resolution
to ne offered IN the House Of Representatives
calling for this information in detail 1t was
referred 10 the Committee on Banking and
Currency, of which Mr.. Buckner, OF Missouri,
was chairman. Mr. Buckner reported it back
to the House adversely The reports of the
Comptroller Of the Currency and of the Secre
tary of the Treasury always omit this lnforma.
ton. They evidently do not wish the people
to know the cost of the national bank circula
ton compared with that Of legal-lender notes.
All OF this would have been forced out by the
resolution offered by Mr. De La Matyr but it
was refused by a Democratic committee.
We shall, IN ali probability, never get the
facts upon this subject until Mr.. Knox is de
posed from office. He is in his acts, and in
fact is, an agent of the national banks and
must do their bidding. He is. and long has