Savannah morning news. [volume] (Savannah) 1868-1887, 1882-04-25
The Democrats and the National
Banks.

It's uuWlllluSuCcc W oASpOAN VIC AAiCS
and hurry through the bill to continue
the three hundred and ninety-three bank
charters which will expire within the
coming year. 1t is claimed by the Re-
publicans that the Democrats are hostile
to the banks, and desire them to be forced
out of existence, and this they claim
would result in financial chaos and dis
order, to the manifest injury of the bust
ness of the country.
These charges are groundless tn toto.
In the first place, the above mentioned
banks would not be forced out OF exist
ence even if the bill extending their
charters were never passed, since under
the law regulating these institutions,
they will have a perfect right to reor-
ganize under their old charters. This,
however, would necessitate their going
into liquidation, calling in their loans
and surrendering their circulation-ln
other words starting de nOCO. Under
such circumstances, the business of the
country would necessarily be more or
less disturbed, since, while the disturb
ance of loans would be but temporary,
there would be required the withdrawal
from trade channels of coin and United
States notes to the amount of the
circulation of such banks at the
time of the expiration of each
charter. 1t is estimated that, in this way,
the ~ banks whose charters expire
during the ensuing five months would
be called upon to surrender 81, 266. 900
of circulation, while their reorganization
would mean new deposits Of bonds
in the Treasury as basis for new issues
of bank notes, and this means that some
time must elapse before such banks can
resume business. This, of course, is OBJ
jectionable, and should be averted. Still,
as we have said, the banks would not be
forced out of existence by the failure to
extend their charters.
In the next place, the Democratic par
ty fully recognizes the advantages of the
national banking system as at present
conducted. 1t provides a safe, reliable
currency which circulates in every State
of the Union, and so is, in every re-
spect, more desirable than the old State
system, when not only opportunities
were given for the establishment of
"wild cat" banks, but when, even
though such banks might have been per.
fectly sound, their issue would not pass
in other States without discount, there
by causing great inconvenience to bust
ness. The present system of national
banks is also entirely different from that
of the monopoly known as the Bank of
the United States" the bill for the re-
charter of which was vetoed by Presi-
dent Jackson on the 10th of July, 1882,
and which was unsuccessfully at
tempted to be Reconstructed during
President Tyler's administration, sew
eral years later. That was a
centralizing monopoly, but our present
banks are divided among the different
States, and are free from the objections
which characterized that Federal insti
tuition. In other words, the national bank
ing system, as at present conducted, does
not permit the General Government to
90 into the banking business for the peo-
pie. The Democratic party fully con-
ours in the advantages which are thus
offered by the national banks, and, al
though there are objections to the sys-
tenn, and in the opinion of many the
States alone, in their sovereign capacity,
should have power to charter banks
within their limits, still under existing
circumstances, it would not be wise or
prudent to suddenly revolutionize our
banking system.
The main reasons why the Democrats
in Congress are offering opposition to
rushing through the proposed bill to
extend the expiring charters Of the banks
affected thereby are wise and prudent.
They do not wish such an important
matter to be inconsiderately legislated
upon, and besides they wish to take ad
vantage of the opportunity offered to do
away with certain very Objectionable
features in these charters which at pres
ent exist. For instance, the banks have
already abundantly proven that their
power is too great and should be cur
tailed. When. during the last Congress,
they threatened to create panic in the
country by Withdrawing their circula-
ton because Congress would not legislate
to suit their views, and when they did
actually brighten the then acting
President Of the United States to inter
pose his veto in their behalf, they de-
cIdedly overreached themselves. They
showed to the people that they were
clothed with the power, not only to pre-
cipitate panics at pleasure, but even to
control the executive and legislative
departments of the government as well.
This is clearly a power which is con-
slant menace to the business and COM
mercial interests of the country, and one
which should not be continued; and it is
doubtless mainly for this reason that the
Democrats in Congress are now oppos-
ing undue legislation on this subject
They wish the banks to be continued,
but only with an eye single TO the wei
fare Of the people, and not alone to their
own advantage. In this the Democratic
members show a wise and prudent
regard for the public interests, which
cannot fail to be appreciated.
Investigation Of the manner in which
the bill which repeats the permanent ap.
preparation for the coinage of the silver
dollar was passed by the Senate, shows
that there is no doubt that the repeal of
this particular appropriation was not in
tended. hut the iu0uirv also disclOeee