Year: 1870

that this measure has been worked up for the


special benefit of the national banks, and that


the apparent opposition of these institutions


was to cover up gigantic scheme for plumber


ing the public. The last section of the bill


contains the gist and purpose of it. Any


banking association organized or to hc organ-


lied, upon deposiiing with the Treasurer


United States notes TO any amount not less


than fifty thousand dollars, may receive an


equal amount Of registered bonds OF the kind


provided for by section three Of the act, and


may deposit the same as security for circu-


lating notes and thereupon such banking


association shall be entitled to and shall


receive circulating notes upon terms and con


ditions and TO the extent provided in the


National Bank acts. Aud now mark, this is TO


be ''without respect to the limitation of the


aggregate circulation of national currency


that as circulating notes are issned under this


section an equal amount of United States notes


shall be cancelled and destroyed.


Here, then, in this insidions manner, and at


one stroke, the legal tender notes are to be


pushed out of existence and the whole cur


rency of the country to be given to the


national banks. The three hundred millions


of national bank circulation is to be increased


to six or seven hundred millions. There is no


limit but in the amount Of greenback currency,


for which the national bank notes are to be
substituted. The aggregate circulation, there


fore, of the national banks, will be little
less than seven hundred millions. The
only condition is that az fast as
new banks are organized aud notes are issued
to them, or an increased issue il made to the


notes Are TO be cancelled and destroyed. If
this bill should pass the House md the Presi-
dent should sign 1t we shall soon lose sight of
the legal tenders. Mr.. Chase's bull from the


Supreme Court against this cheap currency Of
the people will be thus practically carried out.


The father Of the greenbacks dug the grave
for his own offspring, and Congress will


close it up beyond the hope Of resurrection.


When the whole circulation OF the country


is in the hands of the national banks it will be
long time before we see any other. These


associations are far more powerful than the


Bank Of the United States was. They will
control Congress, the administration and all


the material interests Of the country, and, of
course, for their own benefit. II it should


not be to their interest to come to specie pay


ments or to remain on a specie basis the
people will be compelled to submit to paper
currency. Aud why should they desire q


specie basis when they derive enormous pro-
fits on purely paper circulation Why
should they want coin, which would yield them
no profit, and which bears no interest when
Funding bill, in getting rid Of the legal tender


notes and in giving the national banks the


whole circulation of the country, will prevent
permanent return to specie payments and
will perpetuate very dangerous monopoly.
A great deal has been said by Mr.. Sherman
and those who favored his bill about the saw
ing that would be made. Let US see how the
bill will operate in this respect. Suppose
| the three classes Of new bonds, bearing a
| lower rate of interest, can be negotiated at
par with our outstanding six per cent securi-
! ties how much will be saved On the first
| class of four hundred millions, bearing FIVE
| per cent interest, four millions year
would be saved on the second class 0i
four and half per cents, six millions a year
would be saved and on the third class of four
per cents, eight millions year would be saved
Upon the twelve hundred millions the aggre-
gate saving would be eighteen millions year.


1t is doubtful if these bonds can be nego-
tiated at par for six per cents, which have now
risen to such high value in the market But,
for the sake Of argument, admit they can, there
the eighteen millions saved. First, these
bonds and the annual income from them are to
be exempt from all taxation by national, State,
municipal, or local authority. Thi, exemp-
ton alone takes away large portion Of the
eighteen millions proposed to be saved. Then
one-half Of one per cent is to be given for ne
gotiating the new bonds--tbat is, the cost


will be six millions, Independent OF the large
expenses Of The Treasury Department in trans


ferring the debt But, to proceed with this


analysis Of pretended economy or saving, let


us look at what the country will lose by chang


ing the grecnback currency into bonds. Four


hundred millions Of legal tenders turned into
five per cents would increase the annual bur


den Of the people twenty millions But, take
the four and half per cents, as the medium


class, and the yearly burden would be in


creased eighteen millions the full amount pro-


posed to be saved by the bill in annual interest.


So that there will be positive loss to the


country Of the yearly exempted taxation on


the bonds, besides the six millions job 10 for
eign and home capitalists for negotiating them,


and the other expenses OF the Treasury. With


even the reduced interest-and it is doubtful


If the interest can be reduced through nego-


tiatng the new bonds for our present six per


cents at par--the burden Of the people would