Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1882-06-06
NATIONAL BANKING SYSTEM.

SYNorsIs OF SPEECH OF CONGRESSMAN
DrNGLEY, IN THE HOUSE OF REPRE-
sENTArIvEs, NAY IL, 1882.
I'VE condense from the speech OF Con
gresham Dingley on the National Bank
Ing System, as reported In full In the Con
gressio nal Record, the following synopsis ::
After giving history Of the nationa
banking system, and showing that it wa
established on the earnest recommends
ton Of Secretary Chase and Presiden
Lincoln to furnish the permanent credi
currency Of the nation, and that it re-
ceived the earnest support of such patrl'
otto statesmen as Senators Fessenden
Sumner, and Wilson. Mr.. Dingley SAID
that the system had now become closely
interviewer with the business and indus
tries of the country, and is universally
conceded to be the best banking system
everdevised. Senator Bayard, Representa-
tive Hewitt and other distinguished Demo
Gratis concur with Republican statesmen
that the system as whole is Of this wise
character, although its details will require
such changes from time to time as may
be found necessary.
The law now requires that the security
fund shall be invested in national bonds
but whenever the existing 800 millions
Of national bonds are so far reduced as to
necessitate other security, the law may
be modified so as to accept State bonds
which have been steadily above par since
resumption, or so as to require small
deposit of bonds and 10 per cent. Of coin
as recommended by Congressman Hew-
lit.
Mr.. Dingley said that any one who
proposes to overthrow currency system
that works so admirably, must show good
reasons, and must formulate clearly
better system.
WHAT Is PROPOSED As SUBSTITUTE.
The opponents of the national banking
system, however, do not agree on sub
stitute and cannot agree.
A large proportion Of the South want
to return TO the old and unsatisfactory
State bank system. Five bills to repeal
the 10 per cent tax on State bank circu'
lation-all that stands in the way of q
State bank currency-were presented in
the last Congress.
The Greenback members of Congress
have formulated their plan in the bills
submitted by Mr.. Brumm, Of Pennsylva'
MIA, and Mr.. Hazel,ine. of Missouri, &c
substitute for national bank notes a Few
issue of legal tender greenbacks. without
any coin redemption fund behind them
The former proposes to commence with
500 millions, the latter with 1909 mil
lions. Unfortunately, said Mr.. Dingley,
a paper currency without coin redemp-
ton fund behind it cannot be sustained.
Science and experience are against it.
Those Democrats who oppose the ma
tional banking system. accept the propo-
sitioa of Mr.. Buckner, Of Missouri, to
substitute for national bank notes, with
a coin redemption fund behind them,
coupled with surrender of the tax on
deposits, as well as circulation.
The chief advantage claimed for the
proposed substitution OF treasury notes
for bank notes, is that thereby millions OF
dollars, twelve millions annually, Mr..
Buckner alleges, may be saved.
PROFIT AND LOSS.
Now compare this claim with the act
ual facts. On the LIST OF January, the
2,l63 national banks in the United States
had an issue in round numbers OF $50
millions in bank-notes, for whose securi-
ty they had on deposit 36S4 millions Of
United States bonds. About 80 millions
of national bank notes secured by de-
post of legal tenders were outstanding
in addition to this but as they were the
issues of insolvent banks and banks in
liquidation, and were being redeemed
with legal tenders already deposited, and
destroyed as fast as they were returned
they must of course be excluded from the
computation. As S per cent, or l63
millions, of the $50 millions Of the issues
of existing national banks must be KEEP
in the United States Treasury as par
of the permanent redemption fund, in the
form of coin or greenbacks, the actua
available issues of these banks for which
new Treasury notes could be substituted
was only SlS3 millions.
Observe further that this new issue Of
SlS5 millions of Treasury notes coulG
not be all used in paying off the 81 PEI
cent. bonds held by the banks, for tn