Year: 1870




In looking at the text of the Fund.
ing bill as 1t passed The Senate on Fri.
day it is evident that this measure has
been worked up for the special benefit
Of the national banks, and that the
apparent opposition Of these institu-
tions was to cover up a gigantic scheme
for plundering the public. The last
section of the bill contains the gist
and purpose Of it, Any banking as.
sociation organized or to be organized,
upon depositing with the Treasurer
United States notes TO any amount
not less than fifty thousand dollars,
may receive an equal amount of reg
istered bonds of the kind provided for
by section three of the act, and may
deposit the same as security for circu-
lating notes; and thercupon such bank.
ing association shall be entitled TO
and shall receive circulating notes
upon terms and conditions and To the
extent provided in the National Bank
acts. And now mark, this is to be
"without respect to the Limitation Of
the aggregate circulation of national
currency prescribed By such acts; pro
vided, however, that as circulating
notes arc issued under this section an
equal amount of United States notes
shall be cancelled and destroyed"


Here, then, in this insidious man.
ner, and at ono stroke, the legal ten
der notes are to be pushed out OF ex.
istence and the whole currency OF the
country 10 be given TO the national
banks. The three hundred millions
of national bank circulation is TO be
increased to six or seven hundred mil
lions. There is no limit but in the
amount Of grcenback currency, for
which the national bank notes are to
be substituted. The aggregate circu-
lation, therefore, of the national banks,
will be little less than seven hundred
millions. The only condition is that
as fast as new banks are organized
and notes are issued TO them, or an in.
creased issue is made to the old ones,
an equal amount Of United States
notes are TO be cancelled and destroy
cd. If this bill should pass the House
and the President should sign IL we
shall soon lose sight OF the legal ten
ders. Mr. Chase's bill from the Su-
preme Court against this cheap cur
rency of the people will be thus prac-
tically carried out. The father OF the
greenbacks dug the grave for his off
spring, and Congress will close 1t up
beyond the hope Of resurrection
When the whole circulation OF the
country is in tho hands Of the nation
al banks il viii be long time before
we sec another. These associations
are far more powerful than the Bank
of the United States was. They will
control Congress, tho administra-
ton and all the material interests OF
the country, and, of course, for their
own benefit If II 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 sub.
init TO paper currency. And why
should they desire aspecio basis when
they derive enormousprofits on pure
~ paper circulation 7 Why should they
want coin, which would yield them no
profit, and which bears no interest
when held in their golfers II seems
to us that this Funding bill, in getting
rid of the legal tender notes and Civ
ing the national banks the whole cir
culation of the country, will prevent. n
permanent return to specie payments
and will perpctuate a very dangerous
monopoly


A great deal has been said by Mr.
sherman and those who favored his
bill about the saving that would be
made. Let ms soc how tho bill will
operate in this respect. Suppose the
three classes Of new bonds, bearing n
lower rate Of interest, can be nego-
tated at par with our outstanding six
per cent securities, how much will be
savody On the first class Of four hun
dred millions, bearing five per cent.
interest, four millions year would be
saved on the second class Of four and
half per cent. six millions a year
would be saved and on tho third class
of -four per cent. eight millions n year
would be saved. Upon the twelve
hundred millionsthe aggregate saving
would be eighteen millions q ycar.-
II is doubtful il these bonds can DC
negotiated at a par for sixper cent,
which have now risen to such a high
value in the market But, for the
sake of argument, admit they can,
there is something 20 DO placed ras o
balance against the eighteen millions
saved First, these bonds and the an.
nual income from them are TO be ex.
empt from all taxation by national,
State, municipal, or local authority -
This exemption alone takes away a
large portion of the eighteen millions
proposed 10 be saved. Then onc-half
Of one per cent is TO bc given for nc.
gotinting the new bonds--that is, the
cost will be six millions, Independent
Of the large expenses Of The Trensury
Department in transferring the debt
But, to proceed with this analysis OF
pretended economy or savingg 'lct'us
look nj what tho counirv will loso hv