Year: 1878

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HOW CAN 1T DE DONE ?


How can this be accomplished
sketch a system, imperfect in details
but leading toward the great purpose
the tightening of the pressure of the
debt. The banks now have on depos-
it s350,O0O,000 OF bonds as pledge for
circulation. Taking this as basis, we
may enact statute providing for the
creation OF national bank loan, a part
of the four per cent funded debt, to the
amount OF S500,000,000. Make these
bonds payable twenty millions annual.
ly, commencing one year from their
date. We thus have series OF bonds
running twenty five years, bearing four
per cent, and twenty millions to be
paid each year. Then prepare and is.
sue your national paper as Treasury
note, which shall bear upon its face
the promise OF tho United States to re-
ceive the same for its face amount for
customs duties and for every form Of
government debt to exchange it for
coin at every United States Treasury.
Indorse it as good for payment OF debts
TO national banks and from one nation.
al bank to another. Make it good for
every purpose, save as legal-tender
for private debts which is beyond our
power.


When you have your $3.50, 900, 900 Of
these notes prepared and new ma
tional bank desires to start or to ex.
change or renew its notes, they deposit
with the Controller of the Currency
four per cent. bonds OF the new series
and receive in exchange for them their
face value in Treasury notes, as the
representative of their banking capital,
and proceed to use them in their bust
ness. Repeal all taxes upon the banks
and suspend the interest upon the
bonds they deposit until they return
the circulation. By this process the
banks have their full capital to use and
the people pay neither interest nor
the taxes imposed upon the banks.
Abolish your redemption agency at
Washington and cut the connection at
every possible point between the banks
and the Federal Government. The
Government will take care ofthe paper
and the banks must stand or fall by the
financial skill with which they are
managed.


BANKING A PRIVATE BUSINESS.


But it is argued that they cannot
bank unless they obtain interest from
the Government upon the bonds they
deposit If this be true, then banking
must be subsidized, for il, after they
are relieved from taxation and from re-
demption OF paper they cannot success
fully bank upon their own capital,
banking has proved itself to be so poor
a business that the people must sup
port it. Very few will agree with this
But il is said we may as we'll pay in.
terest to the banks as to private citi.
zens. The answer TO this is that we
give them corporate franchises and
privileges and exemption from taxation
that are not given to the citizen, and
this agency is to be q lever with which
to reduce the pressure Of the debt, and
it can only be tolerated If it serves this,
its greatest end. With s347, ,000, 900
of legal-tenders to run parallel with the
debt until its full payment, and $780,
100000 OF Treasury notes, we have
what will be stable currency inter-
changeable with coin, and every dollar
Of debt on which we save interest TO
the people. As the bonds deposited for
circulation mature each year they will
be Cancelled and the notes they repre-.
sent will be redeemed and destroyed
If the commercial wants of the coun-
try call for more circulation another
twenty millions of bonds will be pro-
vlded, which will be absorbed by the
demands of banking capital and left at
the Treasury in exchange for another
twenty millions OF Treasury notes. BY
this process we annually pay twenty
millions Of debt and annually reduce
our interest charge upon an equal sum.
To such system we can safely commit
ourselves; nay, our clear duty compels
us to seek some remedy in this direc-
tion for dear money, oppressive taxa
tion and depressed industry.