The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1882-02-14

so are they the servants of the Govern
ment: that as they are organized for The
benefit Of the people, so they shall be
continued for the benefit of the people,
or not continued at all. Gentlemen say
that we may drive these hanks out Of
existence; that they will go out of busi-
ness. Very well, let them go; we shall
find means to supply their places. II
the complete control Of the volume of
The currancy is to be put into their
hands; if the public debt is TO be per-
peluated at any rate of interest in order
to secure their contiued existence; if tue
people of the country are to pay large
loan their own notes to the people, at
large interest also, then l say We are
paying too much for the benefits, what
ever they may be, which they confer
upon the G0verGm mt and the people.
| 1t they choose to go out of existence
and to withdraw their circulating cur
rency, let them do 80, we will supply
that currency, as the Senator from Mis-
souri, has well said, we will supply it by
the silver which bounteous nature has
implanted in the m ,untains of our coun-
try; we will supply it, il need be, with
the greenback currency, which has pro-
ven so cheap and go useful.
know these banks are money-making
institutions; they ought to be. take
no exception to them in that character,
Men get together and combine their
wealth 10 make money We do not eX-
ppct them to remain in any business in
which th' v cannot make money Wer.
cognize the purpose and object they had
in their organization. We know the pur-
pose and objects of The Government in
them organization. We know that when
ever they find that they cannot remain
in existence and be profitable to their
stockholders they will go out of exist
euce Nobody will complain of them.
am rather glad to hear it sometimes
stated that limitations upon their power
of making money may be so great as
that they will not continue TO perform
the functions originally attributed to.
hem hy the law of their organic ltion.
Generally we hear it said--and am a
| little tired o hearing it-that they are
so patriotic and so noble that, with an
excess of patriotism bevoHd that which
other citizens have, they fy to the rescue
Of the Government and lis credit when
ever they are in danger.
But, sir, tell you they will not 90 ou'
Of existence. When you give them a
bond of 3 per cent upon which to do
their banking business and guarantee to
them the franchise of issuing the circu-
la'ine medium of the country npon
basis OF that kind, clean, free, undi-
minished, untaxable basis, furnishing
them year by year quarterly or semi-sn-
nually 8 per cent, they will not eosout
of existence. They understand the valne
Of their franchise and their business
They know we'll that to-dav they enjoy
the benefits OF system which no other
b Eking system has ever at anv time or
at any place hal, and that the advantages
which they enjoy are burden upon the
people; and as long as those advantages
and that burden exist they will not 90
ont of existence.
Mr.. HAWLEY. Woull the Senator
have any objection to telling me about
how much the banks made by reason of
the privilege of their circulation-about
what percentage on their capital?
Mr.. PENDLET0N. LOU ,ted from
the statistics of nv friend. the Senator
from Missouri, Mr. Vest, who stated
that upon basis of S450,000,0o0 of
capital these hanks had within twelve
years divided $3.50, 900, 600. and had re-
tanned surplus fund of Sl2S ,00Q, 900.
I think he stated (snd he will substan-
tiate the statement, II am not in error)
that these banks during twelve years had
cleared percentage Of 4 per cent upon
their capital annually.
Mr.. HAWLEY. The gentleman will
allow me to say that that does not quite
answ,r my question. can point him
in my own State, for example, to Safe
banks that have never taken advantage
Of the national circulation, ,and to private
bankers side by side with them. who
likewise have made 6 and and 10 per
cent The object Of my question was to
know how much was due to this national
circulation OF which they had the adyan-
tage. My impression is that great
many of them would throw il aside il
there should be very much more bother
about it, and that they would make just
abont as much money without it.
SIR. PENDLE TON. There is on page
24S Of the Appendix to the Congress
sional Record of the last regular session
of Congress statement OF the benefits
Of the circulation to the various banks
OF the United States, and l commend
the reading of that page to nv friend
from Connecticut as the answer would
give him to the question which he has
asked
Mr.. HAWLEY. That is the Comp
| troller's statement
Mr.. PENDUETON II is not the
Comptroller's statement, but it is taken
from him.
MFR. HAWLEY / have seen the
Compiroller's statement, and that was
one reason why asked my question.
NJ. PENDLErON / have only one
word to say about the Treasury-note
circulation. These notes were issued in
1882 iu the strain Of the Government
They were put out with brand upon
l:hem White it was said that they were
good enough for all the transactions OF
ordinary life between the citizens of the
country. they had not the value which
would justify their reception for 'us-
toms or for the payment of the interest
upon the public debt. The law under
which they were issued provided that
4 they should be fundable in the 6 per cent
bonds of the United States the 5 20
bonds which afterward became so popu-
lar. They we're sent out with this pro
vision for funding upon the one hand
and this stigma upon them on the other; =;
and yet in two or three years, | think in
1854, the provision for their being fund
ed in the bonds of the United Ststes was
repealed aud they were allowed to stand
, upon their own basis. Because they fell
I in the market, because they went below
? the par of gold under this treatment
) from the Republican party, which had
put them into existence, thev were deri-
!, ded and decried, and for years we lFsd
r them called 10 tones Of derisiom The rag
ri tha l..honora1 onrrapou orr