Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1895-12-05

Well, the associated banks claimed
to have loaned the associated people"
the government - $3.50, 100000 in
specie and Mr.. Coe further says:
after taking the third amount Of
$50,000,O0O by the associated banks,
those in New York, who had at that
time paid in of their proportion over
$80,0O0,000 in all, found themselves In
this position:-Their aggregate coin,
which on the 18th Of August, before the
first payment into the treasury, was
$40, 73S, 800, was on Dec. Z, $42,S1S,6lO,
a reduction Of only 81, AIS, $3.50, and the
other two cities in like proportion.
It may be confidently affirmed
that had the banks been permitted to
exercise their own methods, they could
have continued their advances in sums
of $50,O00,O00 for an indefinite period"
Great Caesars ghost! Just think of
it; the banks of New York had loaned
the government over $S0,O00,000 In
specie, out Of stock Of $40, 733, 800, and
had reduced their stock of specie 81, 415,-
$50. They had loaned nearly twice as
much specie as they possessed, and had
the governments bonds for nearly
eleven times as much money as they
had lost in coin. And, had the banks
been permitted to exercise their own
methods, they could have continued
their advances in sums of $50,000,O00
for an indefinite period"
The explanation of "their own meth
DDS" by which they were enabled to
perform these acts Of legerdemaiu may
be found in the following extract from
a speech of Thaddeus Stevens in the
House of representatives, February 5,
1862:
Before the banks had paid much OF
the last loan they broke down under 1t,
and suspended specie payments. They
have continued to pay that loan, not in
coin, but In demand notes Of the gov
eminent"
In another speech February 20, 1862,
Mr.. Stevens said:
"The, banks took $5O,OOO,OOO Of 6 per
cent bonds, and shaved the government
SIS, 100000 on them. They paid for the
$50, 900, 900 in demand notes, not specie"
Query: II the demand notes were
not good money for the banks were they
good money for the banks to loan to
the government at this trying period
Of its existence?
Was 1t a mistake to issue treasury
notes to meet the vast expenditures OF
the government under such circum-
stances? There was a mistake, or
worse than a mistake COM
mitted, but 1t was not of the character
indicated by Mr.. Carlisle. The govern
ment should have issued United States
currency in sufficient amount to meet
all the requirements Of that trying
period. This currency, instead Of being
a promise to pay, should have been re-
deemable only in receipt for taxes and
public dues. It should have been a
full legal tender for all debts both pub
lie and private, and no provision should
have been made for its conversion into
bonds. Such a cur
-ency would have been gladly received
by the people for food, clothing and
munitions of war, and by the army and |
navy for military and naval service.
It would have saved thousands Of mil
ions Of dollars that have been plum
Tered from the people by the associated
banks under the system Of brigandage
hat was provided for instead, and to-
lay we should be free from public debt
Ind from thralldom to Wall street
Advocate.