The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1882-05-04
THE NATIONAL BANK CHARTERS.


Congress from Missouri.
The following is the concluding por-
ton of Mr.. Burrows recent able speech
in Congress upon the subject of the Ma
tional Bank charters:
Some seem to enterta n the idea that a Me-
tional Bank may at any me during the twen-
ty years named IN the laws of 1858 and 1854 en-
gage In the business of Matt nal banking and
continue for twenty years, not from the time
the law passed, Tut from the me the bank
went into ops alton. This appears to be the
opinion of Hon. John Sherman. But that this
supposition has no foundation in tru III appears
from the fact that this would be the creating
of Nat onal Banks for forty inst .ad Of twenty
years under til banking law. That this cam
not be the intention OF the law Of June 3. 1854,
or of any other Banking act. is ev,den. from
granted a-e to continue for twenty years,
VIII ch Of course means from the date of the
law.
All the precedents are are in favor of this
construction of the act The act of February
z5 1875, charter d the first National Bank for
twenty years. The bank did not go into oper-
alton FOR some time after the granting of the
charter: but the charter expired and was not
renewed February rs. 1911, just twenty years
one thought in these days Of poiir cal purity OF
contending that the bank had a right un-
der the law, to issue notes and continue busf-
ness a ter the day upon WIN ch the charter ex-
pired or tnat the exp ration should date from
the time the bank comm need business under
On March 10, 1915. Congress chlrtered the
second National Bank for twenty years. These
twenty years expired March 10, 1896. and
some time after the granting of the charter,
the charter expired just twenty years to a day
after Il was granted 1t VIII be seen. there
fore, that the construction given to the act OF
lse4 is something new in the history OF the
county, and false p etense as well as a part
G tionaI Blinking scheme Of 1852 M aud 1854 upon
the American people perpet ally. Let the
people res. st this effort by all lawful means:
States for another twenty years let them OBJ
tain their charters openly and ABOVE board
Let them not attempt to climb up some other
lation is selected because they cannot openly
20 before the people and ask for their
Section provides that from and after the
LIST Of July, 1882 National Banks shall pay
out their notes for expenses or in the paym mt
Of any d bts due ind dividuals. II tn ~ exist
under law, 1t is right they should be made To
oJey the law. They have rig t to pay the
notes to the Government TO- all debts. except
ing duties on imports and to pay them to Ma
tion a Banks for debJs due them. Tbs the
present bill does not prevent them from doing,
but il provides that for all deDts due individ-
udls com or United States notes shall be paid.
Section provides that al NaiCnal Bank
notes paid to the United States, or in any way
paid out, T but ut that sud banks shall receive
theref IT from the Treasury Unit d States
notes to the full amount thereof; and that said
National Bank notes shall be destroyed, and
thu legalten Ter notes paid therefor shall be
charysd to the said banks and cancelled and
bonds TO that amount credited.
But Il is said IN oppos ii N to this section
that said bonds may at the time be WORT a
premium, and that the crediting of said 'rd5
to tns banks at par would be an injustice to
them. In reply to this ! present the fact that
| at first tn s. bonds were purchased by III se
banks with lsgaltender notes which the laws
hid made fully fifty per cent. discount for coin;
| that $40, uOO.0OO Il these bonds did not cost
them in coin more than 500, ,00), 600; they have
| collected from the Treasury in gold more than
"A
bonds and twice as much as said bonds cost
them in cIin: that for fivs yea of the time
| Tn gold interest was pa d in advance, W tn re-
| bate when tn legal-tender bonds were at tn eir
greatest discount; that though the bonds held
| by them were payable III ! gal-tender not 8,
Congress- By the law of March u, 1859, mad 3
| them payable in coin, increasing their value to
| the extent of the difference between gold and
| Government notes, that by the act of 1879, all
bonds were made payable, prime pal and inter-
est, in co n of nine-tenth5 standard fineness.
| and both the interest and the principal were
| exempted from taxation, both State and Ma
tional; that in 1873 to prevent bonds from be.
| ing paid in silver, as provided in the law Of
| 1870, the silver dollar was demonetzod; that
the bnks might be able to sell their bonds
bearing six per cent. interest at twenty aud
| twenty-five per cent. premium, the act of ls1
| was passed. allowing National Banks to deposit
| legaEtender notes in the Treasury to the
amount of tn eir circulation AMI to Lit AMI 5 II
| their bonds at a large proft; that all the time
FROM tn cir going into operdt on these banhs
| have bee n granted by the Z 'mptroller OF the
| Currency circulating notes to the exten OF
ninety per cent, not upon the face value OF
the bonds, but upon the current market value
| thereof; that upon tn Sc notes, which often
amount to the fac, of the bonds, AMI for which
they paid The United States not one dollar oil
consid ration, they made by loans and interest
from six to ten per cent, depending upon the
| rate in the States where the banks are located
that from the beginnng these banks have de
clared large dividends to their stockh lders
and they now have r serve fund of between
: one hund ed and two hundred millions dol ars
In view of these facts now ridiculous 1t ap
20, fpoic hiatt Tnife hall
these banks premium upon the bonds helc
by them, when, in place of tn cir notes de
paid the n tes of the Government, which arr
worth one per cent. prem um over gold in En-
rope. and in all parts of the United States: Or
the Pacific coast and in Canada they are wortf
two pr cent. over Id. If there was evel
anything just and proper the third section O.
This section provides that from and afte
July l, 1882, all National b nix notes receives
by the banks themselves shan be TRANSMITTED
to the Ire sury, and the notes Of the Govern
ment shall at once be sent to said banks there
! for, and that all these bank notes shall be dc
stroyed In the Treasury; and that the Govern
said banks, and bonds Of the United States
to the full amount thereof, belonging to sal
banks credited to the banks and cancelled. TIL
remarks upon section two will apply to thi
section also. In reply to the obi ction tina
the Government has no right to compel Nation
expirafIon Of their eharters a@a'n state ,ha hn
these banks are the or eatures of Congress, an
that Congress has the right to annul thei
chlrters or to make any mod fcation in tn II
} as the statements under the first section of tn
bill show. The only change proposed by thi
act is that after July they sh'll not pay on
for any purposes their own notes, but sha
. receive therefor and pay out legal-ten lie
/. notes Of the United States.
again the s ssagseseon d that the so retiring
circulating medium as t. create panic an
greatly reduce the value of property, stat
4 ton commences the United Sites Treasur
shall prepare and issue full CALENDER Trea
= ury notes to the amount of all the Nation
! Bank notes issued to these banks, so as 10
prepared at any time to transmit t. bank
. sending to the Treasury their circulation T.,
redemption United sttt TT. notes aoto to the the m fu
vide for reduction Of the currency. On th
contrary, the power of the banks to reduce {
and 1878 is one of the worst and most DANCE
GUS powers granted to these banks. This bi
takes the power from them, and does not lodg
A abls under the law of 1874 to reduce the leg
!, tender circulation by depositing the notes
: the Treasury to redeem their own circulat 9
3 at ali times when they could make money b
n it or perpetu tie their power by 81 doing a
" under the law of 1875, of increasing their
' cui ltion whenever they can accomplish II
e same objects, The people of the United Stat
n are disgusted with these proceedings, ana al
determined an end shall be put to them. -
Il This bill. therefore, repeals the act of 49,
, allowing National Banks to re1eem their ci
culation in the Treasury with legal-tend.
Treasury notes, and to lift and sell their bond
:. and provides that these not shall be r
deemed at the Treasury, and by the Treasur
in the notes of the Government; and that
the amount of National Bunk circulation thu
redeemed the bonds. instead Of be ng hand'
over tn the banks snd sold, shall be credited
the banks and Cancelled, and the people
lieved from paying the interest thereon. Th
r method does ample justice to the banks al
L protects the oppressed people from furth
r imposition for the henelit Of ths greatest
" mon Ipolies. This bill also pr vides that al
- bonds deposited in the Treasury hy the
l. banks over and above the am u of the Giro
a lation 9ranted them shall be delivered to thel
" the banks, unless they are willing to rece
J. legaltenfer not of the Governm mt theref
D. at par. II the latter, the notes may be paid
them, and the bonds canccled. The bill fl
d ther provides that this process shall be CO
at tinued until all the circulation of the ban
mn shalt have been redeemed, AMI there shall
" no money of any kind in the Unit States
that issued by the Treasury, not to the banl
but TO the people. The bill allows Natior
Banks to continue, If they see proper, und
National law, as banks of discount depo
L and exchnnUe: but danriYas them of fhl