Year: 1874

by the government; the other the


national bank system, and this latter


entirely in the hands of the people.
Both have been tried, and both sat
isfy the people. Shall we now aban-


don these well-tried systems and 90


OF experimenting on new theories?
My answer would be emphaticaIly


no! Let well enough alone. The


bane OF this people is now, and has


ever been, a lack of stability in our


laws. This has been since the be-
lginning of our national history.


Radical and sweeping changes are


made without consulting in the least


the interests of capital and labor,


and capital, kept in suspense or sud


denly rendered worthless, has been


compelled to adapt itself to the alb
irupt changes thus introduced.


| What, then, do we need now?


What will be safe? What will bring


speedy and permanent relief?


If you will turn to the twenty-sec-


ond section of the national banking


law, you will see these words of evil


omen, and the words which brought


on US this most needless financial


revulsion. They constitute the first


sentence Of the section, and are as


follows "That the entire amount
of notes for circulation to be issued


under this act shall not exceed $780,
100000"


My remedy for existing evils is,
strike out those words, and in all


otherrespects let that national bank
ing law stand precisely as now. Let
it alone in all other respects. Why
make this change? Because the
limitation contained in those words
fixed an absolute maximum of bank
issues, beyond which they cannot
extend, however urgent may be the
public demand for them. No matter
how rapid may be the growth Of the
material wealth of the country, how
marvelously its resources may be de-
veloped, there is no relief 10 be had.
1t does not matter if the demand
for current money may be far ahead
OF "that certain quantity of money
thus necessary to carry on the bust
ness Of exchange and the common
concerns of life," this claw of the
Medes and Persia1s" knows no
change. Such law is an anomaly
in our institutions. Besides, it is
virtually saying that the Americans
are not fit to be intrusted with the
management Of their own concerns.
This maximum being reached, then


banking under this restriction be-
comes a monopoly in favor of exist
ing institutions, by excluding the
organization Of any other. The cir
culation is thus made stiff and elastic
by having no power of increase to
meet the increasing wants of the
people. just this is our condition
now, and just this brought on and
continues this financial revulsion. It
would be infinitely better, in my
judgment, to leave the simple ques-
ton of amount to the ordinary rules
of business and throw open banking,
a. I have before indicated, 10 the
free competition of all parties who
choose to engage in it, and who can
and viii deposit the required bonds
at Washington to secure the bill
holder. To refuse to do this is to
attempt say attempt, for it viii
not suceeed-to put the American
people under guardianship. Certain
ly it is not the policy that viii meet
the approval of the masses, to show
by legislation a want of confidence
in the very people who but a few
short years ago rose in their might,
snatched the Republic from the
death to which it was fast fastening,
and restored it to liberty.


Let the government provide by ad-
equate guarantees for the retention
of bank issues in the bonds deposit
ed as security; let it carefully watch !
over the system to see that it moves
within the rules and conditions pre-
scribed by law; and then it will have |
done all that it can wisely do. The |
people will then take care of the |
banking business, and expand it or
contract it according to their wants
as practically ascertained. If more |
banks are needed, then more will be |
organized, and if they are not needed |
then the effort to force them srtifi
cialIy to force them into public exis-
tence beyond the public demand will |
be very sure to correct itself by their
unprOftableness. The basis being
right, then free banking, under the |
general law of supply and demands |
clearly the true theory. 1t is the on
ly theory that can escape the evils Of
a monopoly and measure the volume
of note circulation by the wants Of
the people. There is a practical in
justice in virtually legislating the
State bank system out of existence,
and then so binding up the National
system that it fails to meet the wants
Of the entire country The proper
remedy, correct in principle and en-
tirely safe in practice, for the evil in
which We have been hitherto and are
still involved is to place the national
bank system on the free basis, by re-
pealing the limiting clauses contain
ed in the words I have before quoted |
Banks will then spring up as they
are wanted and where they are want
ed, under the instincts of capital and
at the call of public requirement.
The people will be their own judges
Of what they want. The volume of
the currency will spontaneously suit
itself to this need. Hence will come
she elasticity about which so much
las been said.


The genius of this people is free
lom. We flourish best and most
when our business interests are left
lnder proper police regulations, en-
irely free. ALBERT ]. CHAPMAN.


The Cincinnati Commercial of Sat
lrday, says "Through curiosity,
one of our reporters dropped in at
he former law Office of the late Chief
Justice, on Third Street, and there
'ound his partner, Register Ball. The
,ld sign of "Chase & BalP' is still
,ver the door. and the old library 4