Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1890-03-27
ABOUT NATIONAL BANKS.

ABOUT NATIONAL BANKS.
The time has come when the people
mot only few of them, but the masses
want to understand our national bank
ing system and to learn about its origin
and history. Inquiries are coming lntt
this Office, and they come from persons
who in past years cared not to hear
anything on he.subject more than was
orators. 1t is true, probably, that no
more than one person in dozen among
bankers themselves-the present corps,
we mean-are familiar with the inside
history of the original national bank
act. 1t is certainly true that a very
large majority of the people at large,
until quite recently, believed, and there
fore assumed that the law had its origin
in the purest and most patriotic
motives. 1t was very generally be-
lieved that this particular law, together
with many other financial measures of
that time, were necessities growing out
of the great war in which we were en-
gagged, and that their enactment was
the result of careful deliberations of
the most righteous and conscientious
statesmen. 1t was quite generally be-
lieved, and, with few exceptions, gen.
orally taught by public speakers and
writer's, that our national banking sys-
tenn was the best banking system ever
devised in this or any other country,
and the success of the system leaves
little room for doubt that bankers have
been benefited by it, though it is now
coming to be question whether it has
been equally beneficial to the country
and to the people Individually. 1t is
now arraigned at the bar of public
opinion; the evidence is being ex-
ahmed; the trial is in progress.
This article is in response to numer-
Gus appeals for information on the sub
ject. Let us say, in the beginning,
that it is not necessary to impugn
motives of statesmen who took leading
parts i'll this matter, nor is it important
just now whether those persons who
have supported. and defended the law,
were sincere or we'll informed; suffi-
cient for our present purpose it is to
state denonstratable facts bearing on
the subject; leaving the reader to do
his own thinking along the line of
,h,I Nm 60
perfectly plain: That most of us, until
within year or less, have been looking
away from tie banks and not toward
them.
The title clause of the national bank
act is in these words: IAN act to
provide a national currency, secured
by a pledge of United States stocks,
(bOnds] and to provide for the Cir
culation and redemption thereof" See
chapter SO, laws of 1868, page 666. The
act was approved February %, 1868.
1t was materially amended by act of
June 8, 1864, and has been amended
several times since. National banking
was recommended by Secretary Chase
in his reports 1851 and 1862. Whether
he was the originator of the scheme
afterwards adopted, or whether it was
first proposed by money gamblers, is a
question which can be more satisfac-
torily determined after all the evidence
is in. 1t will probably be found that
all of our financial legislation from the
houinninr of tho nnfil tho nrocanf
with the single exception of the silver
coinage act of 1878, was brought about
chiefly through the influence of the
gold gamblers on members of congress,
congressman and senators hearing the
gamblers side only, for the people
were not there. The people asked for
none of that character of legislation;
they wanted plenty of money and they
wanted it in circulation, caring nothing
about what it was made of, while the
gamblers insisted on maintaining the
gold standard, limiting the amount of
circulating notes in the beginning,
depreciating their value while in use,
and finally destroying them, at the
same time multiplying the interest
bearing bonds, depreciating their value
in the market so as to obtain low-priced
bonds with deprecated currency and
then use the cheap bonds at their face
value as security for their bank note
circulation.
Ninty per cent. of the face value of
the bonds deposited is issued to the
banking company in circulating notes;
the bank circulation is taxed l per
cent. per annum, and the banks are
authorized to lend their notes to the
people at whatever rate of interest
is lawful in the state where the banks
are located, per cent. in such states
as have no established rates. The
per cent. tax is the only charge upon
the banks circulation made by the
government; it is in effect permitting
banks to use 80 per cent. of their