The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-09-21

What is the fundamental fault of
our national bank system? 1t is not
that we have banks, for banks and
bankers are an important part Of our
civilization. The fault lies in the fact
that by the policy of the Republican
party, the government relinquishes
to corporations and individuals the
exclusive control over the volume of
money, the power to furnish and reg
ulate the medium of exchange. The
money circulation of the country is
ats economic life blood. The power to
control it is the power to control the
nation, its business, industries, wei
fare and independence. 1t is the HAM
iltonian theory to put this power into
the hands of individuals and classes
for Hamilton distruSted the people
and favored the rich and we'll born"
He was an aristocrat in principle; and
all the measures that are colored by
his genius are aristocratfc in spirit.
Jefferson was the opposite. He be-
lieVed in the people. His mind was
broad and sympathetic; and his con-
ception of institutions shows his faith
in humanity; not only in political af-
fairs, but in those also that are eco
nomical and financial. While Repub-
hcan newspapers extol Hamilton, it is
certain that there is more true phil
osophy, more financial wisdom, in a
single paragraph from Jeffercon than
in all that Hamilton ever wrote or
planned on finance. Take, for instance,
what Jefferson wrote concerning loans
for our second war with England. Let
ter to Epps, September 18th, 1913:
1.-The question will be asked, and
ought to be looked at, what is to be
the recourse if loans cannot be OBJ
tanned. There is but one Carthage de-
ienda est Bank paper must be sup
pressed, and the circulating
medium must be restored to
the nation to whom it be-
longs. II is the only fund on which
they can rely for loans; it is the only
recourse which can never fail them,
and is an abundant one for every ne
cessary purpose. Treasury bills, bot
toned on taxes, bearing or not bear
ing interest, as may be found neces-
sary, thrown into circulation, will take
the place of so much gold and silver,
which last, when crowded, will find an
efflux into other countries. and thus
keep the quantum of medium at it's
salutary level. Let banks continue, if
they please, but let them discount for
cash alone or for treasury notes.
The principle Of value in the fore
going is that 1t recognizes the none
tary circulation as an essential ele-
ment Of the organic life = { society. For
nation to transfer to individuals and
corporations the control over the vol
ume of money, its regulation and dis
tribution, is as absurd as for a man
to hire out the work Of Initiating his
lungs and circulating his blood. This
is precisely what the Hamiltonian
y7-rS o.o1-1 l. ~.
and those modern f1nancierS who try
to initiate him are to be pitied accord
ingly. But the method of giving over
the control of the money of the coun-
try TO individuals and corporations is
a favorite one with Spectators; for
while the ship of state is sure to be
scuttled, those financial cormorants
are no less sure to get the booty.
The natfnaI bank bill became a. law
February %, 1863 According to the
testimony of the man who drew up the
bill there was at that time no need
of it whatever. The author of the BILL
Mr.. Spalding tells US, Financial His
tory" page 1SS. as follows:
mo national bank currency was is
sued until about the LIST of January.
1864 After that time it was gradually
issued. On the 1st of July 1864, the
sum of S25, sos 695 had been issued; and,
on the 22d of April, 1865, shortly after
the surrender of General Lee, the
whole amount of bank circulation Is
sued to that time was only S146 927, 975.
It viii therefore be seen that compare
lively little direct aid was realized
from this currency until after the
close of the war. All the channels of
circula ton were well flied up with
the greenback notes, compound-intereSt
notes and certificates of Indebtedness,
to the amount of 500, 900, 900, before the
national bank act got fairly into opera
ton. This bank issue was in fact an
additional imitation Of the currency
1t was only when the bank men and
spectators succeeded in depreciating
United States money to So and 40 cents
on the dollar that they were ready to
invest it at par in bonds for the pur-
pose of ablishing banks It is both
greed and selfishness that was invar-
iably manifest in the banking program
The procedure was thus described in
its early days by S. S. Marshall, a
member of Congress from Illinois, who
gave this history in the House: See
Congressional Globe, July 21st, 1868:
AN association of gentlemen in an
eastern state raised $500, 900 in currency
They went to the Office of the register
of the treasury and exchanged their
currency for 100000 in six per cent
collaborating bonds. They then went to
the otf1ce or the comptroller of the
currency in the same building, orgariz.
ed q national bank, deposited thei1
$500, 900 in bonds, and received for theil
bank $4,000 in national currency
They had let the government have
$4,000 in currency more than they re-
ceived for banking purposes, and had
On deposit 100000, on which they re-
ceived as interest from the government
$4,000 year in gold, (and exempt