The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1900-02-10
lie. the Na,Ional Banks 60.

Let the national Banks Go!
New York sun: The debt ref1nding
scheme, which the Senate Finance Com-,
mittea has attached to the House cur
rency bill, is ayOwedlv intended for the
benefit OF the national banks. 1t pro-.
poses to create $3.50, ,OOO. coo of 9 per cent
thirtv-year government honds, in order
that the banks may take out circulating
notes against them to their par value.
paying on the notes tax OF only u per
cent per annum, and clearing on them
profit Of l l1s per cent per annum.
By the provisions OF the national hank
acs, the government not only guarantees
Indirectly through its bonds the redemp.
tion of national bank currency, but nn-
idertakes. directly. should any national
bank fail. to redeem its notes at cnce,
selling the bonds afterwards to reim-s
bnrse itself. If the tonds should fail to
produce enough to repay what has thus
been paid out, the Government gets back
the deficiency only after the banks as
eta, on which it has prior lpin for it,
are liquidated.
Furthermore, when any national bank,
for any reason, surranders its clrcula-
tion, it pays the government an equal
amount of lawful money. and the Gov
ernment thereupon assumes payment OF
the circulation. The notes thus surren-
dered become, therefore, the direct debt
of the government. They amounted. in
the aggregate, at the heeinning of this
month, to more than $36,000.000.
The government also carries or the
work of engraving and printing the
national bank notes, and OF rpdpeming
them out OF per cent fund of lawful
money furnished by the banks for the
purpose. 1t also maintains at an annual
expense of over 100000, the department
of The Comptroller of the Currency at
Washington, with nearly one hundred
clerks, besides number Of special px-
aminers, paid hy the banks, to supervise
the affairs of 300 national banks and to
protect the public against loss by their
mismanagement.
ThJ sole justification for all this ex-
pensp and labor is the furnishing 10 the
people of a safe and sound paper clrren-
cy. 1t is not pretended that state super
vision would not, in other respects, IS
amply suffice to ensure the solvency of
banking corporations, as that Of the Fed
eral government. 1t is only because the
national banks issue circulating notes
to serve as money that the Federal gov
eminent takes charge of them.
OF the two currency bills before Con-
gress, both provide for the maintenance
of paper currency issued directly by
the government, and for its redemption
in gold on demand by sufficient gold
redemption fund. One or the other of
these two bills is pretty sure to become
law. Then the government notes will
be as nearly perfect form OF paper
money as hnman wit can devise. The
government. if all else fails, can, to re-
deem its notes, always levy and collect
taxes or sell bonds, whereas banks must
wait upon their debtors, and, possibly,
fail TO collect the whole of what these
debtors owe them.
These things being so, the perpetua-
tion OF the national bank system be-
comes not only unnecessary. but source
of useless expense to the nation. In the
course OF the next two years, tho char
ters OF most OF the national banks ex-
pire and need not be extended. If their
stockholders desire to continue in busi-
ness they can reincorporate under state
laws, losing only the privilege of issue
ing circulating notes, which never
should have been given them. In place
of the circulation, which Will thus be re.
tired, tile government can issued an
equal amount Of its own notes in re-
demptlon OF an equal amount OF bonds
and thus both prevent contraction OF
the currency and save considerable
! interest.
4 10 make tne perpeluatl0n OF national
bank currency part Of the Republican
programme, is to raise, deliberately and
unnecessarily. an issue which the party
OF Bryanism will be only too happy tt
| tGFe mp. The question for the Rppnhli
"an party is: Shat we, bv ente,ing the
next presidential campaign as the cham
pions Of national bank money, give II
the cause Of Bryanism strength il
could not otherwise hope for, or shall w
let the banks go?
4 Common sense is in favor OF answer
ing the question against the banks. lie
the national banks go!
The Edgerton News saws that there mr.