The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1900-03-26
The DYING CENTURY
PASSED IN REVIEW
SOME IDEA OF UNCLE SANS
GROWING DUTIES.
Responsibilities of Government Be-
ginning with Hardly More Than
Police Power Expand Wholesomely
in the Great Branches of Public
Sarvice
From the Chicago Tlmes-Ilerald.

From the Chicago Timcs-1lerald.
Government as designed for man by
man. and as it started to keep pace
with the growth of civilization, had be-
hind II the assertion of a police power
only. Order was Of first necessity.
Law. in its first relation to society,
had bearing upon order only. Before
the dawn Of the nineteenth century
government had taken cognizance Of
possible duty toward society beyond
the mere keeping of the peace, but in
this century, of all others, the prov.
ince of government has widened until
1t concerns itself with almost every
form of individual and collective en-
deavor. 1t has become even a close.
Jealous monopolist In the interest Of
Its people, as in the conduct of the
postoffice department of a nation.
Within the last hundred years the
United States has given characteristic
proof of this growth of government.
and in its institutions it has stood as
q world example in progress
For government upon new lines.
laying the foundation for an unexam-
pied. material growth that time was
to prove the experimental processes
by which the currency and the banking
systems Of the United States came into
being are most vital in interest. For
experimental as were the processes,
they have led to governmental cur
rency aggregating $2.O00.O00.0oo and to
bank deposits of s5,000,000,000, upon
which are based checks and drafts
that are doing 96 per cent of the busi-
ness of the country. Storm and stress
and blood have marked this progress
toward a present system that even
now is in question. but II has been a
wonderful accomplishment withal.
from the time that Hamilton in 1871
became the founder of the Bank OF
the United States"
WEBSTER ON HAMILTON.
or him Webster said in a famous
speech:
He was made secretary Of the treas
ury: and how he fulfilled the duties Of
such n place at such a time, the whole
country perceived with delight and the
whole world saw with admiration. He
struck the rock of national resourc IS
and abundant streams of revenue
gushed forth. He touched the dead
corpse of the public credit and *
sprang upon it's feet"
But President Jefferson had opposed
the new institution and for more than
FORTY years after it's establishment the
national bank in one proposed form
or another was political issue. In
1910 the question of rechartering the
bank was defeated. largely through
the influences of the ninety state
banks then in existence With the war
Of 1912 and it's drain upon the country.
banks wsre compelled to suspend
specie payment and in the general
panic the government was loser by So
0n0.OOo. Ee-ostabished in 1919. with a
capital of $4,000, 900. the Bank of the
United States became the nucleus of a
system OF mismanagement, jobberies
and even rObberies that gave rise to
the famou.; "ban:l war" Of politics,
ended only when President Jackson. in
1895. overturned the national institu-
tion. 1t was the period of wildcat
currency and Jacksons specie circu-
lar" forbidding the sale of public
lands except for coin. brought on tn
great ranic of 1887. In the crash Of
the banks the government, as de-
positor. again was loser by nearly
$1,000 900.
From special session of congress
called by Van Buren, on Sept. 4, 1887
down to Aug. 1, 1916. when the inde-
pendent Treasury Department of the
United States finally was established
the independent treasury scheme had
its ups and downs as a political issue
1t made and unmade politicians. Today
the treasury and the subtreasuries OF
the United States are banks of issue
and redemption. and the largest manip-
ulators of United States money. There
Is an extreme reaction from the old
cry of 1S46-"Separate the government
and the banks'--and the treasury al
Washington and the subtreasuries al
Boston, Baltimore. New York. Phila.
delphia. Chicago. Cincinnati, st. Louis
New Orleans and San Francisco are
'Nitally linked to the banking systems
of the country.
BANKING DURING THE CIVIL
WAR.
The beginning of this condition dates
from the national banking act passed
on Feb. %. 1863. under which law these
national banks We're to become govern.
ment repositories. This bank cur.
rency was given a semi-legal tende,
power, and a government gold certifi-
cate enabled banks to store gold re.
serves in the national treasury.
The civil war. then in progress, had
established the relationship between
banking and government. An ire.
deemable greenhack, printed by the