The White Pine news. [volume] (Treasure City, Nev.) 1868-1906, 1886-08-14
NATIONAL BANKS.
wa.sr Balefal Iaflusnce FuIly TX
plainsi by w. II. stewart.

nlained by w. II. Stewart.
The following. letter from eK'sena-
tor Stewart to Representative Funs-
ton, in reply to lette r from the lat
ter. asking the ex Senator what he
meant by the words subsidies to M
,ioual banks in his late pamphlet,
/. 40 plain an elucidation of u subject,
that bu. few even among those other
wise weil.informed seem to understand
5ut little about, deserves to be pub
lshed in every paper in the lard. IL
mu powerful arraignmcnt of the cor
rupt financial system of the country,
which threatens the life of all in
dus.ries antagonistic to its power. The
people have already given over $3.50
0OO.OO0 of the nations wealth to these
national banks, with no return, Hear
ri. Senator Stewart explain how this
lawful robbery Is being done
Hos. Z. II. FuSsroS. House of Rep
resentatives. Washington, d. c.:
Dear Sir:-Ynurs ut the cath ult
inquiring what | mean in my pam
Dhlet by subsidies ta national banks IS
received. | am under many obliga-
tons to you FIR calling my attention
to the fact that that portion of my
pamphlet is not sufficiently explicit TO
be re.dily understood.
In 1854 the circulating medium of
the United States was cnin and legal
tender notes commonly called green
backs). The greenbacks drew no in
tercst. The government issued inter
est.bearing bonds, and bought large
amount of these greenlDacks-say S400-
100000. This increased the interest
bearing debt just that amount. All
this would have been very well if
there had been more greenbacks in
circulation than was required, or If the
government could have substituted
without expense better currency than
green nbacks. But this was not the
case. After the bonded debt had been
increased by the issue and exchange
"f interest bearing bonds for non in
teresi-bearing greenbacks. there was
adehclency in the circulating medium.
ihis deficiency was made up--not by
Issuing non interest-bearing paper and
retiring intcrest-bcaring bonds, but
by allowing the national banks to de-
posit bonds in the Treasury and draw
interest thereon to the same extent that
other bondholders did. And in addi-
ton thereto the government gave TO
the national banks 90 cents on the dol
lar OF the amount of bonds deposited
Dy them to use as they pleased. Was
not TINS gratuity, or a subsidyl
There Is II marked distinction be-
tween an ordinary bondholder and a
national banker. The bondholder
draws the interest on his bond-noth-
ing more. The national banker draws
tne same interest on his bond, and in
addition thereto, has the use of 90 per
cent. oil the amount of his bond free
OF charge. This seems to be subsidy
and particularly so when We reflect
mat the national bank paper rests
after all upon the same basis of credit
IS the greenback. Neither would be
worth the paper upon which it is
printed without the credit of tho Uuit-
en :: States was pledged either to redeem
ter to keep it in circulation as a legal
tehder.
The question has not been clearly
answered why national banks exist at
gil: Ii their circulation were retired
ana greenbacks drawing no interest
suostltuted therefor, the government
would be relieved of from twelve to
m'een millions year. II is manifest
.nat the designs of the national banks
10 their war upon silver is to create a
nc TTescessity for more national bank notes.
ine svowed purpose is to retire the