The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1882-06-22
THE yATIONAL.DANK SWINDLE.
From New York Truth.l

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THE NATIONAL.BANK SWINDLE.
From New York TRUTH
The latest trick OF the national-ba nix
lecches is to accuse those who oppose
their s~inllc Of animosity to whoever
and whatever aided in the war for the
preservation Of the Union.
The Tribune, which has lately nm
dertaken to supplant the Times in the
good graces Of national bankers, quotes
this from the speech Of Congressman
Hardenbergh "Tne majority Of the
Democrats we're not yet ready to forgive
the national banks for furnishing money
to the Government to put down the
rebellion" And here is the 7ribune's
comment: "The objection to this re-
mark is that it was strictly true" Mr..
Hardenbergh is Democratic Congress.
man and the Tribune is Republican
journal and as they agree upon this
point, we may safely say, in the language
Of some Of our contemporaries, lit is
not party question" It is national
bank question. And as Mr.. Harden
bergh is national-bank officer, while
the Tribune is bidding for national-bank
patronage, it is, perhaps, not very re-
markable that they do agree on a mat
ter OF such vital importance to national
banks, notwithstanding that they belong
TO different political parties.
We take no interest in this little ma
tional-bank love feast, except so far a.
the iLtimation appears that the national
banks furnished money to the Govern
ment to put down the rebellion.
They did nothing of the kind.
The money which they loaned to the
Government was what the Government
had previously given to them and the
premium on gold which the villainy Of
their projectors had created. The banks
bought the interest bearing bonds at
fearful discount; and, these bonds being
deposited in the treasury, the Govern
ment gave the banks 80 per cent. Of
their market value in paper money.
which the banks graciously returned to
the Government for more bonds. The
only money furnished to the Govern
ment by the banks was furnished in that
way. And these bonds are now worth
more than par after having paid the
holders more than their face value in
interest.
Is there anything in that for public
gratitude to the banks?
The Government would have had no
difficulty with its finances but for the
bankers and gold gamblers. In the be-
ginning legal tender notes were issued
by the Government to the amount Of
$50, 600, 600, which were always at par
with gold because they we're receivable
ut the Custom House. Had the issue OF
such notes been continued, the war
could have been carried on without the
issue ct q single interest bearing bonl.
But gold gambling would not have -four
ished, and the worse than uselessness Of
banks OF issue would have been demon
strated.
This result the Wall street clique de-
termined to prevent Mt any hazard. The
country was nothing to them !; the accu-
mutation of wealth was everything.
Accordingly, variety of devices were
adopted to embarrass the administra-
ton, and prevent the continued issue OF
legal tenders. So successful were the
scoundrels, in their traitorous scheme,
that Secretary Chase was glad to com
promise with them, by agreeing that if
they would not embarrass the Govern
ment further in the prosecution Of tho
war, the legal tenders should be retained
in the Custom House as fast as they were
presented, and that hereafter customs
taxes should be payable only in gold.
The effect OF this concession to the
demands of the bankers and gold
gamblers was what might have been ex-
pected. The only great requirement
for gold was at the Custom House, aud
subsequently to pay interest on tho
bonds. While there were enough notes
receivable for customs duties in circula-
ton, and no gold interest to pay, there
WAS no marked demand for gold-it was
worth no more than the notes, and
consequently commanded no premium.
But when the bulk Of these notes had
been locked up by virtue of Secretary
Chase's compromise with the bankers
and gamblers, and bonds had been is
sued bearing interest payable III gold,
a peculiar value was given to the yellow
metal, and it sold at premium, which
increased with the necessities of the
Government to the enrichment OF the
ring that had forced the administration
into the dilemma in which it found it
self
In the winter Of 1863 the next move
was made.
The National Banking bill was pre-
pared by the ring, and lobbied through
by member Of Congress, who acted AS
agent Of the New York bankers. It be-
came law. And from that time for.
ward the national banks aided the Gov
eminent by first loning it the gold for
what their originators had contrived to
create fictitious value, and then the
paper money which the Government it.
self had given to them They realized
the premium on their gold; they drew
the gold back in the form of interest on
their bonds, and they pockeied profit
on The national-bank notes, through
loaning them to the Government, by in
yestment in more gold interest-bearing
bonds, and to the people in commercial
discounts.
This is the way in which the national
banks assisted the Government in its
hour Of peril. Instead of being paraded
as objects for our sympathy, their orig
inators ought to have been hung as
traitors to the country. They did more
to prolong the war, and to rob the peo-
pie while prolonging it, and for many
years after, than oil other influences
combined.
To-day these national banks are draw
ing interest on these bonds deposited in
the treasury; and they are also using in
their business sum equal to 80 per
cent. OF the market value Of their bonds,
which sum has been given to them by
the Government for the trihing royalty
OF per cent per annnm. The net cost
to the Government, at the very lowest
estimate, is about 21l ,OOO, 900 year for
issuing half Of its paper money through
the national banks, instead Of issuing it
directly.
But worse than this, the amount issued
through the banks is SO large, and their
control over it is SO complete, that they