Savannah morning news. [volume] (Savannah) 1868-1887, 1882-01-18
The National Banks and the National
Debt.


One Of the main objects of the Re-
publican majority in Congress at pre-
sent seems to be to secure the perma-
nency Of the national banks, and efforts
in this direction have already been made.
Washington advices inform US that the
House Committee on Banking and
Currency has agreed upon bill to pro-
vide for the further existence of the
1913 banks whose charters will expire
this year - and Of numerous
others whose charters will expire
next year-which extends the charters
Of all NATIONAL banks twenty years, and
this bill will be reported favorably to the
House. But it is also stated that Secre-
tary Folger has called for $50. 100000 of
continued per cent. bonds, to be re-
deemed by March. and this will be such
q material lessening of the basis Of the
national bank circulation that it is con-
coded that Congress will have to deter
nine at this session what the banks are
to be founded on in future. They cannot
replace their continued SIS and 6's, which
are being rapidly called in with high
priced As and AS, and do business with
profit
In this emergency the banks are look
ing forward with interest to the passage
of ex-SecretarY Sherman's bill to fund
the national debt in irredeemable 3 Fer
cent bonds, thereby making the debt
permanent, and securing permanence to
the basis of national bank circulation
To say nothing of the fact that the pas
sage of this bill would, at once, vindi-
cate the wisdom of the Democratic ma
iority in the last Congress in providing
for funding the national debt in redeem
able 3 per cents, and that it would, at
the same time, show up the pitiable
weakness and folly of Mr.. Hayes in al
lowing himself to be coerced by the
banks into veto of that act, it would
be a measure decidedly Objectionable
TO both South and West. The Southern
and Western States are largely relied
upon for revenue to meet the obligations
Of the government, and inasmuch as the
people Of those sections must, while the
debt lasts, be considerably taxed to ena-
be the government to meet its dues on
the debt, it is naturally to their interest
that the debt be extinguished as
r7pidly as possible. so that they may be
relieved of this burden. A Western con-
temporary, discussing this point, well says
that the debt is being reduced at the
rate of 800, 900, 600 year by process
that cannot be arrested without legisla-
ton. We are paying this debt because
under our present revenue system
ne cannot avoid it-and the peO-
pie do not desire to avoid it.
We may reduce the tariff and the
internal revenue taxes, but we will
still have large surplus to devote to the
debt. The question, therefore, is, wheth-
CT we are so enamored of the debt as to
devise laws to prevent it from being ex
tinguished by the easy and gentle pro-
cess now going on. The popular feeling
on the question is not difficult to dis,in-
guish. We began the business of get
ting rid Of the burden sixteen years ago.
The people approved it and the people
have applauded every annual reduction
announced in the official reports; and it
is foolish to suppose they will now halt
in sight of the goal they have been ad-
vancing towards and give up their long
cherished purpose.
Hence it is pertinently concluded by
this same contemporary that 'the banks
must find out some method of living
without the national debt If bank notes
cannot be issued except on a basis of
government bonds we must find an equal
" good currency to take their place.
This will not be difficult. The people
sre not anxious to see the national banks
abolished by hostile legislation. but if
their notes cannot survive the extinction
of the national debt some other kind of
notes or certificates will be devised as a
substitute"