Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1886-11-29
GREENBACKS Us. NATIONAL
BANK NOTES.

The government at Washington, acting
by authority Of congress, proceeds on the
theory that the national banking
system now in existence is to
exist at least twenty years longer.
Every week or so the government
starts another national bank In business.
There is now running in the San Anto-
MO Express an advertisement from the
comptroller of the currency at Washing
ton, authorizing the establishment OF
new national bank In San Antonio. The
comptroller says this bank can continue
to do business until July c, 1906, which
Is twenty years in the future. The won
der Is how the national banks expect to
live through the twenty years. They
are based on the bonds which constitute
the national debt. Every bank before
opening business must purchase certain
sum in bonds according to its circulation
and capital stock which are deposited In
the national treasury. These bonds arc
maturing and are being called in so stead
lily that before twenty years have passed
the last bond will be called and paid. At
the present rate OF extlnguiehment
every dollar OF the national debt
will be paid within ten or NJ
teen years, perhaps sooner. 1t will
not be assumed that the people will con-
semitic stop paying the debt and keep
bonds in existence simply to maintain the
banks. 1t is tenable proposition that
before the charter Il the San Antonio
bank expires 1t will have to surrender Tor
payment every bond 1t holds. What is
the bank to do shenH Manifestly it must
go out OF business, unless congress In the
meantime amends the national banking
law SO banks of that character can dc
business without bond basis, or pay
ment Of the public debt will be stopped
and enough bonds kept alive to furnish
a basis for the 2010 or more national
banks. THE GAZETTE does not believe
the people win consent to any perpetua.
ton of the national debt. The national
banking law will be changed, or there
will be new financial system--probsbly
the issue Of treasury notes, the green.
back, based on bullion owned and held by
theg Ivernment,or backed by the faith and
credit Of the government, which Is the only
basis the bonds have. 1t will be under.
stood, of course, that in partlcularlzlns
the new bank at San Antonio THE GA
zETrE has simply selected it as an Illus.
tratIon. All the other 2Ooo national
banks in the country will be IN the same
boat with the Institution az San Antonio
But unless the national banking law Is
very materially amended there will not
be national bank Ia existence In San
Antonio or any where else at the close OF
this century. Some of them may hold
bonds that mature later than that date,
but tho government has the option OF
calling such bonds before maturity and
the prospects are that the treasury re.
oeipts win warrant such calls. The
bonds must go, and with them the banks
as now constituted. There will be a
strong influence brought TO bear ON con.
g'ess for the continuance of the national
banking system IN some shape, for the
advantages of the system are not to be
denied. The outcome viii depend en-,
tirely upon the temper OF the people, and
Judging from the expressions OF the pres
ent, the people will declare for the simple
treasury note instead of the nationa
bank note.