The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-07-19

EE NAltONlL DAMN HULL
1t was stated by nearly all the reporters
that DR.. Van vorhis's essay quite emptied
Tomlinson Hall Saturday night. The i'm
plication that it was the abstruse and
philosophical character Of the address that
caused the prompt emptying of the hall is
unjust 10 DIR. Van VOrhis. 1t was nothing
of the kind. So vivid was the portrayal
of the one-man power and the approach
ing Imperialism in the national banking
system that the audience fled in panic.
What IL this o1e-man power should stalk
into the hall and seize all those Democats
and make some sort of slaves of them?
The fear spread. and the hall became va
cant. The Hon. John w. Kern was not
present. but the terror which DIR. Van
vorhis so wildly depicted seemed to cast
its threatening shadow over the mind of
that statesman to such an extent that he
could not contain himself until he had
written DIR. Van Vorhis a letter in the
papers TO thank him for discovering the
imminent danger to the freedom of the
people the national banking system is, and
to unite his sepulchral bass voice TO the
Van Vorhis tenor.
1t is possible that the fears of these in
tense and always sincere gentlemen have
run away with them. The national bank
ing system has been in operation thirty
seven years. At the time of its adoption
it was denounced by every enemy of Abra-
ham Lincoln. 1t was des gned to aid the
Union in time of war and TO take the issue
of notes out of the hands of state banks.
The first complaint against the system
tied. some States received more than their
share. Thereupon national banking was
made free to all who would organize with
a capital Of 50.0OO. For more than twenty
years the issuing of notes by the larger
national banks has not been a source of
profit. This fact is shown in the falling
off of the circulation of national banks
from $500, 2GO, O69 in 1881 to s1ss, $50, O5o in 1896.
The circulation of the banks in 1896 was
s209, 9A, O19. 1t has been increasing since
the passage of the financial bill by the
present Congress-. which authorized the es-
tdDAoHiicIl VI DdilkS WIFI e<O,UU Capital III
small towns and the issue of notes to the
face value of the bonds. Under this law
several hundred banks with SIS. 900 capital
have been organized in small towns, largely
in the West and South. To these banks.
which have small deposits. the circulation
is of some consequence, but not enough to
cause people 20 put their small savings
int bank stock so long as they can get
6 or { per cent. outside. In a city the size
of Indianapolis, now a reserve city, circu-
lation is of so little account to banks that
they do not avail themselves of it. Ma
tional banks in this city hold large amounts
of United States bonds and city and county
bonds as assets, upon which they draw
less than 4 per cent. If these banks could
be sure of S or 10 per cent. revenue from
bank circulation they would deposit their
bonds and take notes for circulation.
There is no monopoly in national bank
ing. Any half dozen men who can get to-
gether a paid-up capital of $4,000 in a
small town are as free TO enter into bank
ing as they are to engage in any branch of
AhaA AhNAC - AANNA ~ S0 ~
favor of the national banking system, and
particularly this provision for the small
banks. They have increased the amour
of money for business in interior towns,
exemplified by the lower rates of interest
which prevail compared with previous
years. A noteholder never lost a dollar by
the failure of a national bank, but the
people Of Indiana lost many thousands by
the failure of local and state banks during
the era of wildcat banking. The fact that
scores of Democrats are shareholders and
managers of national banks in Indiana
should relieve the mind of Mr.. Kern
of the narrowing suspicion that the
national banker is after the lifeblood of
the Nation. One of the Democratic big
four is a national bank president, and an
other in this city is one of Mr.. Kern's
most jealous supporters. The truth about
the matter is that all this fright of such
men as Mr.. Kern regarding the national
banks is artifcial-an exhibition of pure
demagogy. disgusting because it is patent
to everybody.