The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1882-02-09

after exist, desire to take up from the
Treasury the bonds which they have de-
posted, whether this or any other class
of bonds, for the security of their circn-
latlOn, they shall deposit in the Treas
ury their own notes, and not lawful
money. That was the law of the organ
izatiOn of these banks from 1862 to fS74
1t was not deemed to be q hardship. II
was thought that these bonds were the
security for the particular Circulation,
The law which was passed in 1864 in
terpOsed to give to the banks an addi-
tioHal advantage, and, as [ shall show
you in moment, an additional power
which was, that if they deposited. NOT
their own notes for which these bonds
were security, but any lawful money
they might withdraw their bonds and
impose on the Government of the United
States the duty and the obligation of re-
| deeming their own notes whenever thew
might come in. | will not dwell upOn
the effect of such a law. 1t has been
stated so clearly in report from the
Treasurer of the United States and i'm
the speech of member Of the House so
often quoted from that do not intend
| elther 10 express my own opinion or to
read largely from this discussion. The
Treasurer of the United States says:
IAN example will better illustrate
these operations. In January and Feb
1
circulation from $3O8, 400 to $4,000 by
| deposits of legal tender notes. Between
| September 20, 1876, and May 26, 1877.
and before that deposit was exhausted.
IL increased its circulation to $45OOOO.
| Between August IA and September 10,
| 1877, it again reduced its circulation to
| $4,000. On September 10, 1877, nine
days after completing the deposits for
this reduction, it again began to take
| out additional circulation, although
$4O2, 800 of prior deposits remained in
the Treasury, and by the Goth of that
month its circulation had again been
increased to $450,O0O. July %, 1873, it,
for the third time, reduced its circula-
tiOn to $45, 700 and in August and Sep
tember, 1879, again increased it to $3.50
600, at which it now remains, the bal
ance of its former legal tender deposit
then in the Treasury being S112,615.
From January 13, 1875, to the date of
this report, $778,275 of its notes have
been redeemed, of which only $40, 700
were redeemed at the expense of the
bank, although during more than one
third of that period it had outstanding
and was deriving the benefit from the
full amount of circulation which its
| capital authorized. The only assess
ments which have been made on the
bank for the expenses of redeeming its
notes were $24.74 in 1875 and $4.39 in
1878. At one time there were in actual
circulation 1852, $50 of its notes, al
though the highest amount ever borne
on It's books was $450,000.
And then, commenting on this state of
facts revealed by the Treasurer in his
report, a member of the House of Repre-
sentatiVes Mr.. Carlisle well said:
Under this section the banks have it
in their power to contract the currency
and produce financial distress, inVOlY-
N - inf or in fln
embarrassing the operations Of the
Government itself, whenever they may
think it will promote their special in
terests to do so, If they do not like pro-
posed legislation in Congress or else
where; if they are opposed to the success
of particular political party; if they
conclude that they ought to be exempt
from all taxation, State and Federal; if
they want additional privileges con-
ferred upon them in respect to any
matter connected with their business;
in short, If their opinions and interests
are not consulted in all cases whatsO-
ever, they can resort at once to this tre-
mendOus power over the fortunes of the
people and thus bring the timid to terms.
and ruin all who refuse to accede to their
demands"
This is a cruthful picture of what the
banks, acting together, touching that
electric chord which runs through them
all from one end of the country to the
other wherever they may be fOund-I
say this is truthful picture of what
they may do.
What did they do? In February, last
year-less than year agO-when bill
which the Congress of the United States
believed to be for the interests of the
country came before the consideration
of these banks, they united together and
contracted the currency $1S,OOO,OOO.
They did this merely by way of giving a.
warning to the Government and warn
ing to the people of what they would do
if the eXigencies of their condition re-
quired. The eloquent language of the
representative of the people in the House
of Representatives Mr.. CarliSlel was
more than realized by the actual opera
tiOns and attempt of the banks them
selves.
Mr.. President, this amendment of the
Senator from Missouri is called an
assault on the banks. deny it. l ask.
any gentleman upon this floor whether
or not it is an essential part of the ma
tiOnal banking system that these cor
pOratiOns, with this great power of con-
centrated and combined operations,
shall have this immense power over the
currency of the cOGntry2 L deny it. L
point to the history of twelve or four
teen years in SuStenance of that deniaf-
point to the purpose for which these
banks are organized. But desire to go
further. say that if that power Is an
essential part of the being of the banks,
l am in favor of taking it away from,
them even if taking it away infiicts their
immediate death wound. l agree with,
the Senator from Missouri, that we should
be derelict to our duty, derelict to the
obligation imposed on US by the very
fact that we are here, If weshOuld allow
any combination of men or any cOmbi--
nation of corporations to hold that tre-
mendOus power over the well-being and
the fortunes of the people of our coun-
try. 1 repeat, if taking away from these
banks this power gives to them their
death-wOund, and that instantly, for
one am prepared to take it away.
Now, Mr.. President, l propose to make
no indiscriminate raid upon these OF
ganizatiOns. 1 do not underrate the
value that they have been to the Gov
ernment in some of its exigencies, and
to the people of the country; they furn-
ished a market for the bonds at time
when the Government needed market;
but L say that they have been enormous
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