The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-11-10

this CT untry we're ever placed on so safe
a basis. unless it were those OF New
York, from which the national system
was borrowed. The New York Banking
law was passed April IS, 1888 Inc
secoud section is as follows:
Sec. 2. Whenever any person or as
ISOLATION of persons, formed Tor the pur-
pose of banking, under the provisions OF
this Act, shall legally transfer to the
Comptroller any portion OF the puoilc
debt now created by the United States
or by this State, or such other States OF
the United States as shall be approved
by the Comptroller, such person, or as
ISOLATION of persons shall be entitled to
receive from the Comptroller an equal
amount of such circulating notes, OF Dir,
ferent denominations, registered aud
countersigned as aforesaid; but such pub
lie debt shall in all cases be, or be made
to be equal TO stock of this state pro
duclng five per cent. per annum; and 1t
shall not be lawful for the Comptroller
to take any stock at any rate above Its
par value"
The Banking law of the United States
only differs from this Act of the State of
New York, in details Instead of recelv-
ing a value of Bank bills equal to the par
value of the bonds deposited with the
United States Treasury, the Ma
tional Banks receive in bills but ninety
per cent. of the par value of the bonds
deposited. Another difference is, that
only United States bonds are received by
the Governm ent, as the basisgot bank
circulation.
The National Banks were dreadfully
alarmed, a few years ago, when 1t
looked as if the National debt would
soon be paid off. In that event, they
would have had nothing, as the law
stands, to deposit in the treasury, as the
basis Of their circulating notes Inc
financial disaster which has befailen the
country, they regard as Goe-send; as
it has increased the bonded indebted
ness of the nation by nearly two hun
bred millions. Prior to this national
calamity they began to urge that the
issue to them of notes by the govern
ment, should at least be equal TO he par
value of the bonds, if not to their cur
rent value; and, when the time comes
for the final redemption of the national
debt, they will insist that State bonds,
railroad bonds, and other corporation
stock may be substituted.
Senator Sherman is one of the last
men in the country who would have been
suspected of harboring thought mimi
cal to the National Banks; and it is with
equal surprise and pleasure that l find
the following passage, extracted by the
newspaper notices of his forthcoming
boos. He says:
81 am one of those who believe that a
United States note, issued directly by
the government, and convertible on de-
mand into gold coin, or give 'nmeat
bond equal in value to gold, is the best
currency we can adopt; that it is to be
the currency OF the future, not only IN
the United States, but in Great Britain
as well, and that such currency might
properly continue to be a legal tender,
except when coin is specifically stlpu-
lated for"
If the Senator had been content to
make the United States notes redeem
able in coin, wi bout the prefix of gold,
/ could heartily endorse this plank IN his
platform. The United States Bank
notes constitute very safe currency;
but why give the monopoly to the banks,
and why invest the banks with peculiar
privileges, which are denied to private
individual citizens, and to unchartered
associations of citizens, in order to Sc
cure the monopoly to the banks
OBJECTION has been raised to making
United States notes legal tender; but ii
they are made redeemable in gold and
silver, the legal tender feature is not
necessary to their utility. Their recep
ton by the government in payment OF
tariff and internal revenue taxes would
keep aft )at between three and four hun,
dred millions, even without the provision
for their redemption in gold and silver
While the government could maintain a
reserve OF seven or eight hundred mil
lions in the precious metals, just as 1t
now boards one hundred millions in gold
for the redemption of the United states
notes or greenbacks. The last annual
port of the Secretary, for the fiscal
year ending June 3d. 1894, states the
amount of gold and silver in the treasury
September 30 of that year to be 1923,
665, 756 of gold, and 5000, GA, 353 of sill
yer, making a total of coin and bullion
amounting to 1888, 4s0, 100. This prob
ably includes the amounts of these metals
that are represented by the gold and sill
yer certificates, although the fact is not
so stated at the head OF the tables.
There ia no valid reason why the banks
should be given the monopoly of issuing
their notes as money. Nor is there rea-
son why they should be given peculiar
privileges, to enable them to avail of
this monopoly, with as little risk and ex-
pense as possible, Private individuals,
as merchants or manufacturers, without
charter, become responsible to the last
dol'ar's worth of their property, for the
debts they contract. But such is not the
case with share holders in Banks The
old rule was TO hold them responsible
only tor the amount of their shares But
the National Bank charters require
something more They bind the stock
holders to double the amount of their
shares So that, if man worth mil
lion, or ten millions, owns ten thousand
dollars worth of shares, and the bank