The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1882-05-03
NATIONAL BANKS AND NATIONAL
DEBT.


224s National Banks. These banks, on the
Ist of October, 1881, had resources amount
ing to s., 35s, 400. OO0-an amount exceeding
the entire National debt. The power exer-
cised by these banks over the business
affairs of the country is practically unlim-
tied. They can expand or contract the cur
rency at will. Nor is this all, nor possibly
the worst feature of the National Bank
system. Through their Bankers Associ
alton they can bring all their vast money
power into operation and concentrate
it for the purpose of effecting
either State or National legislation. When
the bill was before Congress 10 reduce the
interest on the National debt to per cent,
the National Banks were prompt to inter
pose their influence and to demand that the
interest should not be reduced. Failing IN
Congress, they brought their power to
bear upon poor, weak, venal and fra1du-
lent President, and secured a veto. The
threats they made to intimidats the peoples
representatives in Congress were carried out
to some extent, and the currency was con-
tracted They evinced disposition to
bring on panic and create universal de-
moralization if Congress should dare to act
contrary to = policy which they dictated.
These banks are now asking for Congress
sional legislation to perpetuate their corpo-
rate existence Mr.. Buckner, of Missouri,
ma speech recently delivered in Congress
upon a resolution to fix day for the'con-
sideration of bill to extend the corporate
existence OF National Banks, said:
Mr.. Speaker. this bill is a vain and useless eff
fort to galvan1ze into a shortliyed and spasmodic
existence a system that contains within its own
organism the seeds of decay and death. The
breath of its life is debt, and without debt
ceases to live. National Banks and National deb
are the siamese twins of our financial system.
The one can not exist without the other The
right 70 continue their existence for another peri
cd of twenty years, as proposed by the Commit
tees BILL can not add day to their duration or
prolong the period of their final dissolution.
Thatdepends entirely upon the rapidity with
which the people are willing to discharge the
bonds which guarantee their circulation. The
President Of the American Bankers Association
and Presiot Mt of one of the leading banks of
New York City said, In an address before the
Niagara Convention of Bankers of last August:
aTtis very obvious that the continued reduction
of the public debt is fast removing the foundation
of the national banking currency, and that the
system stself thus losing its Characteristic basis.
is approaching solution, and 1t is evident that
the existence of the present system of banking
can not be long protracted, and that very soon
soRe substantial change In the basis of our Ma
tional currency win be inevitable"
This sageeious and intelligent banker advocated
the substitution OF some other basis than United
States bonds for the bank note circulation. and
neither he nor any other member of that Conven-
ton even hnked at the necessity or destrablty OF
the law now before the House. Whether expir-
ing banks go1nJo liquidation by operation of law
or by the vote Of their shareholders, some or all
of the shareholders organize new bank under
the same or a dt5erent name, or whether their
charters are extended by the provisions OF this
bill. the foundations of the system will in either
contingency continue to be undermined and de-
stroyed as long as debt redemption Is continued:
and no such patent nostrum as prescribed by this
bill will exempt the Nstional Banks from their
inevitable doom. say inevitable, because there
is no more universal sentiment In this country
than the fxed and determined purpose to dis
charge the last dollar q the public debt-besring
interest as rapidly the resources OF the country
win permit What the hanks need. therefore. Is
not deceptive and unnecessary legislation, such
rs we have Ia this bill, but something 70 restore
the Constituent element Of the system, and 20 Sc
cure frmer and stronger foundation for their
mischieyous and vicious n0fe circulation
By the foregoing II will be observed that
the banks expect by the perpetuation of
their corporate existence TO perpetuate so
much of the National debt as may be re-
quired as a basis for the circulation of their
notes. The sum of 81, 900, 0Oc oOO has been
named that is to say when the National |
debt has been reduced to that amount it is
to be regarded as a permanent debt. existing |
for the benefit of the National Banks, since |
as the law now stands, the National Banks
and the National debt are the "Siamese
twins of our financial system" To pay the
debt is to get rid of the banks, and they are
now bringing all their influence to bear 70
perpetuate their existence, and those who
favor National Banks will in due time be
clamoring for the perpetuation of
the National debt. Those who
favor National Banks also favor the retire
ment Of the greenback currency and the de =