Western Kansas world., 1888-09-15
stood in the way and Mrs. Emery vas not

and the star of our liberty sink in night oi
anarchy and blood"
In these awful realities the government to
induce capitalists to loan money, agreed
that they should not be required to receive
the greenback-the status and even validity
of which was then an open questlon-ln
payment of interest thereon. And hence
that part of this "infamous exception"
This agreement required the interest on
the public debt to be paid in coin. How was
the government to get it? Again being put
to it, and being required to act hastily and
without the valuable advice of Mrs. Emery,
Mr.. Lincoln and the rest concluded to make
England and France and the other foreign
nations, that had drawn off our gold and
silver, under that typical democratic free
trade era from '46 to '6l, return to this gov
ernment the precious metals of which it was
SO sadly in need. SO they wrote on the
greenback that it was not receivable for
'sduties on imports" And thus it tran
spired that when foreigner came to our
shores, with consignment of goods, he had
to pay the tariff in gold and silver. And l
say il was right. and so will every loyal man
who is still in his senses and will calmly re-
call the circumstances.
NATIONAL BANKING LAW.
I do not pretend to say that the national
banking law furnishes the best system of
banking that can be devised by human in
telligence, nor do say that it is in all re-
system of banking that has ever yet been
devised by the wit of man.
The discussions In congress, and through
the public prints, in which the founders of
this government, such as Jefferson, Hamil-
ton, Madison, and that magnificent genera
ton of statesmen which followed them-the
Jacksons, Websters and Clays, of this coun-
try, express their opinions upon the bank
ing question, abound with this thought: That
if a banking system could be devised, that
would give to the country safe and con-
venient currency of uniform value through
out the land, and that would locate banks of
issue and deposit in all commercial centers,
that would be an ideal banking system.
Now that's just what the national banking
system does. But Mrs. Emery thinks
otherwise. She has to say that
"The next scheme for robbing the people
was the national banking act, passed in 1863.
OF all the villianous schemes of robbery
ever practiced upon any people, our national
banking system stands pre-eminent."
am glad to have met the pre-eminent,
par-excellent, the really superb piece in this
seven sct drama of villiany SO soon. 1t will
absolve me from quoting much further from
this book.
Now let us see. This "villianous scheme
vi IoOUCIJ was IOCOuAOuocu Wy od4lAOA
2. Chase, in treasury report in December,
1861, and after being held under advisement
for nearly year and half, became law
in March, 1868. and received the approving
signature of Abraham Lincoln, president of
the United States-a gentleman who was in
the habit of knowing what he did and the
purposes for which it was done.
If this was the most "villianous scheme
of robbery" ever practiced upon a people,
then say that Mr.. Lincoln was the most
wretched and unblushing william that ever
presided over the destinies of nation, and,
if this be true, let us tear down our monu-
ments, re-think our thou ghts, and re-write
the history of that momentous epoch, which
is, by common consent of mankind, crown
ing Mr.. Lincoln as the greatest, kindest and
best of all of the sons of men.
augurated this system of banking, that it
would serve the interest of the great fnan-
cial agencies of the country in the prosper
ity, welfare and perpetuity of the nation, as
no other system could. That it would facil-
itate the matter-then very serious one
of making government loans. If Mrs.
Emery had been there, she probably would
have advised the gentlemen who had the
matter in charge not to borrow any money,
or if they did. to borrow it at low rate Of
interest, whether the fellows who had it
wanted to loan it or not, and to pay it, in a
promise to pay that was never to be paid at
all. But she wasn't there again, and the
national banking system is one of the sor-
rowful results of the lack of her wisdom in
council.
am in favor of the national banking sys-
tenn.
First-Because it provides banks of issue
and deposit in all commercial centers, the
currency of which is safe and uniform
throughout the land.
Second-Because they are subject to rigid
inspection, and not allowed to loan money
on fluctuating and precarious security, such
as real estate, and shares of their own cap
ital stock, and cannot Joan more than ten
per cent of the amount of their capital to
any one man or one institution.
Third-Because they are prevented from
taking usurious interest, (sec. 5,197 q. 8.
statutes), under penalty of forfeiture of all
interest (seo. 5,19S, ibid.
Fourth-Because they do interest the great
financial agencies of the country in the
credit, welfare and stability of this govern
ment.
And it is not fact that these banks escape
taxation, as 80 often stated by the noisy
demagogues whose business it is to mislead
the people on this question. They pay
higher rate of taxation in this state than
any other property. They are taxed on
their capital stock and surplus [sec. 5219 u.
D. et6tutcS duu S6Cs q AAuS6S TAX laws
And they level tax of l per cent on all
their circulation to the government Tsec.
5214 o. s. statutes. And the government
gets the benefit of all currency lost or de-
stroyed [sec. 5222 and 5224 U. s. statutes.l
Neither is it q fact that they do or can
control the volume of currency in this
country. The national bank currency ae-
gregates only $256, ,972. .l5S, while the whole
volume of the currency now is 81, ,925, ,25S,-
SS2. It win be seen therefore that the ma
tional bank currency is only about IA per
cent of the whole volume.
Neither is this system more profitable than
private or state banking, except as results
from the superior confidence Of the public
in national banks. 1t requires at present
prices $127, 600 to purchase $1OO 600 of gov
ernment bonds. On this basis the banker
may issue Sc, GOO in currency. This he has
to loan, and in addition thereto gets 4 per
cent on his bonds. But he loses the use of
$37, 900. The difference between the cost of
the bonds and the amount of his currency.
When his bonds mature the premium, of
course, is gone, and the banker must return
to the government his $500 of currency
or legal tender money in lieu thereof before
he can receive back his bonds, which were
oripinallv nleCoed for this issne otharwi.o