The midland journal., 1893-09-29
QUESTIONS OF THE DAY.
Usurpation by the Banks.

RACES committed by these institutions
are alarming. The entire speech should
be procured and carefully studied by
every one who desires better under
standing of the financial question. Mr..
PETER said:
The is no reason given for this with
drawal of currency. While il was not
strictly violation of law, it was vio-
lation Of public confidence. If there is
any such thing as, when an individual
or corporation assumes to do business
under an act of Congress, there is a
contract obligation implied or involved
there certainly was such contract
obligation involved in the acceptance
by the banks Of the provision Of law
that they would not withdraw their
circulation unless the public interest
demanded it, but that they would in
crease their circulation from time to
time as public interests might require.
Instead of that, we find in the period
from 1884 to 1880, SIX years, that
$192,000,000 in round numbers, was
withdrawn wrongfully, say, without
any reasonable excuse either in morals
or laws. There was nothing to excuse
it except organized avarice.
But during the time when this con-
traction of circulation was going on new
banks were being established fIom year
to year, going upon the minimum,
taking merely enough of circulation to
secure national charter, while they
might have increased their circulation
to an aggregate ofnearly 100000, 900.
By referring to the report Of the
Comptroller of the Currency for 1890,
at page 500, we find just how this
performance was conducted | read
from paragraph at the bottom of page
$50 of the report of the Comptroller of
The Currency of 1890:
"Of the 3,540 banks, 1850 have a
capital not exceeding Sl50,Q00 nor less
than $4,000 each, which is the lowest
amount any bank in the system may
have. the aggregate capital amounting
to $2OS,790,96O. The remaining 981
have capital of over sl50,00O each,
the aggregate amounting to SAL, $685.
275."
ask especial attention to the next
sentence.
eff an amount of bonds equal to the
total capital were deposited to secure
circulation, the whole body of banks
might have circulation amounting to
$685., ,4o2,515, or 494, 4,279,658 more
than the present minimum"
The table N the appendix shows how
this distribution was effected as to the
States. While the capital Of the
national banking institutions at that
time justified their putting out among
the people a circulation of $494,00O,-
900, in round numbers, more than they
then had out, IN truth /; and in fact
during the six years preceding the date
of this report; they had actually with
drawn from circulation $l91, 100000
Mr.. President, there is a great diff
ference between the Withholding Of
money which might be put into circu-
lation, and the withdrawal of money in
actual circulation. 1t happened, during
the operation of the Bland-Allison act
that while the Treasury Department
was authorized to purchase $4,000 00O
worth of silver every month, to coin il
into legal tender dollars, and pay them
out as other moneys, as matter Of fact
the Secretary refused to purchase more
than $2,000,000 worth month, and
that he did not give out except in the
form of silver certificates, when they
were really forced out of the Admins
tration by the clamor of the people.
Drawing the difference between the
withholding of money to which the
people were entitled and the withdraw
ing Of money which they actually had
in their hands, the difference amounts
to almost crime, certainly to a stupen-
dous wrong that no future conduct can
possibly condone.
If ..the banks during the period to
which | have referred had continued
to increase their circulation from year
to year as fast as they had done be-
tween the years 1878 and 1882, at the
rate of about $500, 900 or $9,0O0,000
a month, we should have had, in addi-
tlon to their regular circulation an in
crease of nearly 100000, 900; but
iustesd of increasing their circulation
as the public interest really demanded
they proposed to, and they did actually
withdraw nearly goo. 900 600 of the