The clarion. [volume] (Jackson, Miss.) 1883-1888, 1886-01-27
The Threat of the National Bank.

Senator MCPHERSON, in his o,bo.u.
feeble reply to Senator BECK's sneaaT
on tie silver question, makes one sioo:e
cant remark. After rehearsine tbasta41
and thoroughly baseless prophecy tbls
the continued coinage of the silver az
lar will naturally cause a Contracts -
t he currency AMI consequent finane;oi
panic, he goes on to say:
THE national banks. which now f-.,
a large proportion OF our circulating, ~
um, would. in eell-preservatia,
greatly in the inevitable coutrsctio,
short, anticipate H. They wnuld s,.-- u
der circulation, redeem and take +, IN
the premium upon the bonds ul.4,.5 50.1
make good their notes, and bank ,f9, ~
upon the ISSUES OF the Treasury ~. I'
Mint. From these TWO causes .-f,n,
say nothing of the boarding of pnI@ /"
private citizens, the effect upon ,.1r ,rg.!
Tries would be frightful'
Were not the Stiffness oil this ,.rL
equai.ed by its malignity, il would a
be worth noticing. The circuIa,iar
the national banks Is now ahout S5ds
600, 600. None of the bonds pled,s5
for the redemption of it can be 80
drawn, except upon the deposit in ~.
| Treasure OF the identical uo-e, 80
by each bank, or of an equal amount IS
| lawful money. The banks could ~.
| get in their own notes and thew ,yorIi
not deposit the gold now In their vq,I,1
| because they would want 10 keen !.
They would resort either 10 silver y.
to legal tenders. Now, the total amour.
of silver dollars and Of silver cerriHca,l.
10 actual circulation in the coup+rv T.
about Sl35, goo 600, of gold ahout sol
000, 900, and the entire issue of legal tar.
ders is only about 1916 GOO 600. m.tir.
no allowance for otes lost or de>uoysfS
Consequently, in order to withdraw tb,;.
pledged bonds, the banks would have =,
annihilate S3OoO0O, 0OO out of the exist
ing $500. 600 600 of national 81.
culating medium. What the premium
on the bonds would be after this csrs.
trophe, and what they would sell for Il
is not necessary 10 demonstrate. Tbsv
simply could not be sold at all, for tha-s
would not be enough money ieft To Inv
them with. Gold, according TO Seuaro,
NCPHERsoN, would mostly be efba,
boarded or exported, and only S500U0b.
600 of gold, silver, and paper money. To-
gether would remain for the bushes.
wants of 10000, 900 people
Surprising, therefore, the Presiden,,
q and directors of the national bank. h
possess he smallest possible amount az
! common sense, they will not even A..
tempt to do what Senator Mcpherson
p threatens on their behalf. Bu,
experience shows that this Is br M
&c means a safe assumption. There is no
measuring the depth Of the stupidity nor
! the wildness of the insanity that NAV
possess a bank managers mind when he
fancies that he sees an impending pecu.
, MARY loss. We have only to recall the
utterly senseiess panic that took hold Of
D. the fraternity in February 1881 when the
=. Carlisle Funding bill was on its passage
d The entire country was thrown into q
:. financial spasm because certain thick.
Of headed bank Presidents feared that the
E. bill would compel them to buy at para
Of per cent bond, which in less than ,r
months they were all scramhiing for 81 q
e. premium, They began surreuderinr then
81 bonds and Withdrawing their circu.a.
m ton, Just as Senator Mcpherson PIE.
diets they will do now, and with no
"a better reason. Besides the Senator di
ne no make his speech until after he bad
a. consulted with leading bank men, and j.
I. is more than probable he speaks upon
authority.
in Forewarned is forearmed. In view Of
ct the possibility which Senator MCPHFR
re son has so frankly revealed, Of a con
IN sp tracy on the part of the national bark
IT against the people, no time should
lost in replacing their circulating note,
is with silver and with additional legs
OF tender notes if necessary. The first ste
tn is to carry out the Sinking Fund act, ac
Is cording to Senator BECK's resolution
re That resolution ought TO he passed a
IN once, and compliance with it enforce
by all the poweLof Congress. This,
itself, would lead to the cancellation
y the bonds upon which some $50 0000t
ne of national bank currency is based az
@ the substitution for it of an equ
amount of United States coin or col
:; certificates. Following this measU
bo should be one providing for an issue
n national money to take the place Of q
n. remaining bank circulation, and a
i peal of the law authorizing such circ
We lation. We should thus rescue the c0u
OF try from the clutches of a greedy al
foolish horde Of bank officials who,
their mad pursuit of percentages, s
~ capable Of raining both themselves al
-, the rest of the community ~ J. 81