The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-12-02
as TO ABoLIsHINa THE NATIONAL BANKS.

There are some indications that the
long-threatened movement for the abo-
lition of the national bank system may
eliminate this winter in an open at
tempt in tlat direction in Congress.
Whether it will develop any strength or
not remains to be seen. The Farmers
Alliance members are pledged to make
war on the banks, and they are prOba-
bly, loaded with hostile legislation on
the subject. They are, however, few in
number, utterly inexperienced in the
methods of legislation, and will possess
very little influence. By themselves
they will be powerless to accomplish
anything, but they may be able to draw
considerable support from the Demo-
cratic and possibly a little from the Re-
publican side of the house. Whatever
form the movement may take, it is like
ly to be O non-partisan one, and to be
met by non-partisan opposition. The
national banks are in no sense q party
institution. Their stock is held equally
by Democrats and Republicans, and
tlclI OIlCcIS CIiDEuCc IucDnOcEs VI OOtn
parties. Their stock is widely diffused
among the people. and they have existed
SO long and become SO thoroughly identi-
fed with the business of the country
and with general and local interests that
a movement for their abolition will
rouse strong opposition in financial cir
cles and among business men irrespect-
i've of party.
When it comes to the point of propos-
ing to abolish the national banks, those
who make the proposition w it to the
country to offer something better. 1t is
not enough for them to point out defects
in the present system. No doubt it has
defects, as oil human institutions have.
The question is, what shall replace it'll
That the national banks have been of
immense service to the government and
people cannot be denied. Neither can
it be denied that they are a great i'm
provement on the banking system which
prevailed before their adoption. Con-
ceding the necessity of some kind of a
banking system, the question is, if ma
lIOtdt III GtO dDtIAiCnCug w bdG 6uGll
take their place? The people will never
be willing to go back to the old State
bank system, nor tn the system of free
banking under State laws which former
ly prevailed in this and some other
States. We have got far beyond that.
The tendency of the times in such mat
ters is towards Capitalization, or, to use
n better word, towards naturalization.
The people want a bank system that will
be national III character, if not in name.
1t must be uniform in all the States and
subject to national supervision and con-
troll. The business interests of the
country are too large and too intimately
connected to admit of o variety of bank
laws, with, perhaps, bank notes issued
in different States of different and shift
ing values. Safety, stability and uni
formity are necessary. The people have
had these under the present system, and
they will not tolerate any system that
does not furnish them.
There is one feature of the present
system that will 500 demand serious
ittGutlOu. ITO ctCuul lCtilCIlfcnt VI
United States bonds has brought us to a
point where it is no longer practicable
TO depend upon these as a basis of circu-
lation. If national banks of issue are to be
continued a new class of securities will
have to be substituted for government
bonds as a basis for circulation. 1t is
the opinion of some who have given the
subject careful thought that State,
county. city and railroad bonds might,
with entire safety and proprIety, be
made the basis of bank-note circulation,
the character and value of such bonds
to be fixed and regulated by
strict national supervision. 1t is
claimed by sone that this feature
might be engrafted on the present sys-
tenn with excellent results. thereby pro-
viding q new demand for local secur-