The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1888-02-09
A UNION OF THIEVES.
BANKS AND BONDS.

John Sherman and John Thompson
Agree on An Important Plan
OF Public Plumber.
4 Desire 10 Have Bank Notes Issued Equal 70
he Par vaIse Of ResAs - Depeait-
BANK NOTES AND BONDS.
NEw YORK. Jan. THE following
correspondence il published here:
CHASE NATIONAL BANK,
NEW YORK, Jan. 8.
Hoy. JOHN SHERMAN:
By giving to the banks par, instead
OF 90 on bonds deposited, will give an
addition to the volume OF currency
OF SEQ. 900, 900, and by removing the
tax OF per cent. on national bank
notes will encourage bankst to enlarge
their issues. l think to the extent OF
$50, 600. 900 more during the coming
six months. can zee no reason why
these amendments to the law should
not be granted promptly.
II.
Some relief to the money market
must be had soon or the cry for an
unlimited or enlarged coinage Of sill
yer will be successfully raised. Sill
yer notes are satisfactory currency
despite all arguments against the
daddy" dollar, except for short
period prior to and during panic
there is always money enough. for
depreciation and liquidation will
Quickly bring about an adjustment
Of prices to the volume Of money usa-
BILE in making prices.
Ill.
/ have an impression that you arc
opposed to granting the issue Of more
national bank notes. and feel that |
am not trespassing upon you IN ap-
prising yon that every national bank
Is DESTROYS to get that extra 10 per
cent. on their deposit Of bonds. and
certainly the business community,
even the farming population Of our
country, will be gratitied in better
and more adequate issue Of currency,
for ii is the prevailing opinion that
more money Is necessary tosstop de-
probation.
w.
therefore ask you to take the in
iative, not SO much as favor to the
banks, but as an advantage TO the
public at large, in securing to banks
the two advantages indicated.
Please excuse my pointed brevity.
(Sicned) JOHN THOMPSON.
Mr.. Sherman made the following
Nj DEAR SIR agree with you
entirely as to the propriety OF increas-
ing the currency of national banks IN
the manner suggested. and you are
mistaken in suppoeing that | have
been opposed to such an issue. ! in.
troduced a bill three or four years
ago. allowing an issue OF bank notes
approaching within 10 per cent. OF
the market value Of the bonds de.
posted. This was defeated in the
committee on finance, and a PROPOSE.
ton to give them circulation to the
face Of the bonds was reported and
passed the senate. but was never
acted upon in the house. l would
most heartily vote for q bill author
lzing the issue Of bank notes eQua
10 The par value Of the bonds deposi
ted. Very truly yours.
JOHN SHERMAN.
To John Thompson esq.
REMARKS BY THE FDIToR.
LIST. The banks have already hat
% per cent. of the face value Of theil
bonds ever since they have respec
lively been organized. The law thai
gives them ten per cent. more sloult
declare the bonds paid and author
lie their cancellation and destruction
The notes should be declared a ful
legal tender. and as4ast as received
at treasury department. should b
destroyed and a like amount Of lik
denominations issued in full lega
tender Treasury notes to take thei
place. The bank notes should b
taxed out OF existence. To this end
the one per cent should be retaine'
or increased to make their exchang
for treasury notes more rapid.
End. This would bring ''solne relic
to the money market" a. it woul'
Immediately wipe out about 50,0O0,
600 OF tax burden imposed upon bus
ness, and the industries to pay tn
annual interest upon bonds for which
the national banks have already re
ceived in currency from the govern
ment 80 per cent. Of their face value
None but depositoss care fig for tn
responsibility Of the Chase nations
or OF any other national bank. Bi
holders look to the government 70
the redemption Of national ban
notes the bills Of broken banks wit
that security being as current a. tn
bills OF solvent banks. OF course tn
national banks are az hostile to tn
issue IT silver money. AZ they are I
treasury nates; because it's unlimite
coinage takes the control Of the cu'
rency out OF the hands OF corport
tions that prosper by controlling tn
money market and fixing the pric
that labor and business shall pay 10
Its use. 1.-THE volume Of money III
able in making prices. Mr.. Thompson
should not be left to the nation'
banks but as near possible should I
uniformly based upon the populatio
of the country. With the volume
money fixed at given amount II
constant increase OK population
equivalent to contraction saasaauc
as limited number Of dollars for q
Increasing population gives less dc
lars for each.
Sd. Surely Mr.. John Thompson
time must have been fully absorbe
with the business affairs OF I'll
Chase National Bank, or he woul
have known that ever since 1868, e
cry public utterance and every Off
iai act OF John Sherman's had for
object the enslavement OF labor
m.