The semi-weekly miner. [volume] (Butte, Mont.) 1882-1886, 1886-01-16

the wisdom Of the Government will b
shown in never trusting itself with the US
OF SO seducing and dangerous an expert
| ment."
assume that it is too clear to admit o.
debate. NO matter what Mr.. Hamilton o.
ANYBODY else said, that a circulating note
in any form, properly secured, is as goot
| when issued by the Government as q hk'
note would be when issued by q corpora
ton created by the Government anc
secured by a Government bond; ane
hardly anybody but the Comptroller or
bank attorney would venture to assert
that the Secretary of the Treasury is not
likely to be honest and careful of the pub
lie interest in maintaining and keeping the
necessary amount Of circulation afloat fOl
legitimate business purposes as bank presi
dents would be. who are under no obliga
ton to consult the public welfare, but, al
the private interests of their stockholders
demand, may contract or expand theil
issues as the one curse Or the other best
subserves their private ends regardless
altogether of the public veal; indeed,
they are apt to be enriched wher
they can most surely Cypress the masses
Yet, in the face of his claim that all Other
circulation is unsafe, the Comptroller shows
that the decrease in national bank cireula'
ton in the last three years amounts to
.,ver $4S, 600, 600. and says that it would
have decreased $25, 900, 900 more if the
Secretary of the Treasury had not come to
their rescue by refusing to use the money
a. his command in the purchase Of the 3
per cent bonds on which their circulation
is based: in other words. the people have
lost oyer 50. 900. 900 of interest, and the
bankers have made Sc, 600. 900 on interest
by the operation. The Comptroller shows
very clearly why the bondholders are SO
anxious t. get clear OF the silver dollar;
they ZEAL that the premium on their bonds
will fall if they are paid in whole or in part
in silver. But he stated the whole case SO
clearly that l will read on page Is OF his
report:
ut will be seen that the banks held in
November 1, 1884, $155, 6O4. 400, and on
November I, 1885, $13S, 900, $50. of 8 per
cents. under the act of July IL, 1882,
payable at the pleasure OF the Government.
The Secretary of the Treasury, during the
year ending November 1, 1888, paid $685.
634, $50, and during the year ending No
ember 1, 1884, sos, &c. 5O OF the public
LII III NO01 u ROA COACos jill
were called. No bonds were called for the
veal ending November 1, 1885. Reasoning
upon the theory that the public debt
would, during the year ending November l,
1885. continue to be reduced by the pay
ment of 3 per cent. bonds, and that this
reduction would occasion the reinvest-
ment of trust and other funds invested
in threes, and cause a greater demand
for and consequent increase in the
price OF 4 per cent. bonds to a point at
it would be more profitable for the
National banks to sell then, the Comptrol-
Ter estimated in his last annual report to
Congress. that unless legislation should be
secured enabling banks to issue currency at
a fair profit, circulation would be reduced
at the rate of at least $40, 900, 900 per
1t is believed that this estimate
would have been substantially correct had
call and pay the 8 per cent. bonds as
as during the two previous years.
The reduction of circulation of Nation
al Banks during the year ending Novem-
Der l, 1885, for reasons other than the
Of bonds by which it was secured, was
than anticipated. The causes
which have led to this result are small pro-
it remaining to National Banks on ~circula-
ton after paying the tax OF one per cent.
ger annum imposed by the Governments;
in the rates of interest through
cut the country, occasiOned by the abund-
Of money in the financial ceters; and
doubtless, uneasiness among certain of the
Of the country as to the outcome
II the increase OF silver in the Treasury, |
'uch increase indicating that possibly the
interest on the public debt, and even some !
portion of the principal, might be paid in ,
standard silver dollars, and that Govern
nent bonds might thereby become depre-
lated in foreign markets, which would Ill
loubtedly affect their price in this country.
The credit and standing of this country is
Ieservedly high, and it is not believed that
he people desire either the principal or in
crest on the bonded debt OF this country
o be paid in anything but gold coin or it's
quivalent."
Think the Comptroller makes it clear
hat the country cannot afford to rely for
Is circulation upon National bank notes.
lie asserts that the bankers will surrender
heir circulation and surrender the bonds
pom which it is based, regardless alto
ether OF the public needs whenever they
an make more money by selling the bonds
han they can by ~loaning the circulation.
We allknow that to be true.
Can Congress afford to vest absolue
over the contraction and expansion
t the circulating medium which regulates
Ill our transactions exclusively in the
OF men who gamble with it for
rlvate gain without any sort OF public
esponsibility.
| think not; yet, if we retire the green
acks and the silver certificates, as our Of
Gals advise us to do, we will have no cur
ency but national bank notes left. which
hey can expand Or contract at pleasure.
pretends thai in the reduction of
hese notes from 1924. OOO, 900 in Novem-
er, 1885, the public interests or needs
ere for a moment considered.
l desire to state with great distinctness
hat l am not making war on boldholders
r national banks or bankers. l voted to
enew their charters, to repeal all taxes
n their capital and deposits, and viii
h~eerfully vote for any and all measures
ecessary to add to their usefulness, either
y increasing their circulation to a with
bonds deposited, or, if it can be done
18th justice to their competitors in bust
ess, reduce or repeal the tax on their cir
But l would require them to
IKE the same coins, both gold and silver,
all other creditors of the COVER
lent receive. l shall always oppose the
ant or recognition of any superior
gifts and privileges in them or in the obi
atlons they hold over those of other citi-
ms. | would divorce them from politics,
nd deprive them of power to control or
tauence legislation by contracting or ex-
anding. or by threatening to interfere
ith our currency, as was lone when they
otained President Hayes veto on a
occasion. l would require
lem to obey the law and receive the coin
hich we take at the custom-house and
t APART as a special fund for their security
I'D payment. When we say by law,
we have done, that emo National
association shall be a member of
ny clearinghouse in which such (%silver)
shall not be receivable in the
ttlement OF clearinghouse balances" l
ouldf forfeit the charter of any bank that
ared to disobey the law, as I would fine
I'd imprison any officer of any of them {
no would certify checks when the funds
ere not actually in the bank at the time.
short, no set Of men should be allowed {
exercise privileges prohibited by law, nor t
I'VE rights given to them in regard to the {
aracter and quality Of the coin in which +,
eir debts shall be paid which are denied I
all other equally meritorious creditors; :
I'd no set Of men should have the powerto t
gulate or control as their private inter- {
is may be affected, the currency or the
lsiness OF the people. II that power il !