Year: 1872

ertheless the individual member shield himso often
by variety OF dodges and shfts, not to say lies.
But the committeerooms are open preserves, where
members can be run down and pinned And here they
20 be willing submit TO fate, and patiently endure
the plaques and infections sent upon them. Probably
the poltos committee in Congress is the Committee ON
Banks and Currency at any rate has the potes char.
nan-the Hon. sam Hooper of BostonAthodeh John
sherman might contest the palm with him. Both Mr..
Hoopers and Slr. shernan's Committees have had TO
the raids Of the reformers and theorists
from the start. aud they have thus had discipline
that, If it did not create band OF thugs
and assassins out OF their members, would
naturally reduce them TO quiet santiness
of demeanor that would put Is the blush the most rapt
disciple of Madame Guion or Feneon. From the DAYS
of John Law down Though John Law himself not
bad, the theoretio specuator on finance In all
stages Of his growth has been ono OF the most confirmed
nusaices In practical legislation that has afflicted man
kind. You cannot dispose of him. for he is ghost who
wthstands any number Of Ithrusts and still remains
good as new He is nothing but pile of figures which,
II Knocked out Of one shape not all damaged for
taking another instantareousy These two Committees
have lately devoted couple Of mornings 10 the hearing
of a gentleman from York who has laid before them
at length plan which, in his estimation has the follow
ing somewhat significant merits


First 1T will greatly enlarge the loans OF the existing
banks


OF the circulating medium.


Third 1t will at once carry the country back to specie


fonti II will create an agency that will add hundreds
OF millions 10 the banking capital OF the country and re-
duce the rate OF interest from II per cent to


Fih Il viii enable to seize and hold the
Of the Aaatic and Australian Continents


Sr IL will transfer the seat OF financial empire from
London TO NewYOrk


may be summed up in this that ii will put EnSland's
pipe out, and give us the world III q sling.


Mr. Loudons mode of coming at these modest and





occult. 1t has the of simplicity Stripped Of it's
lofty terms the verbiage Of enthusiastic compost
ton proposition is TO incorporate national bank Of
sOOOOOOOO capital This bank is 10 obtain its for
from the source the present national banks
obtain theirs anG is be subject substantially the
same restrictions the amount received only it is to
have the privilege Of buying many notes from the
Government nOtemakers IL pleases~ 1t only has to
pay gold for them at their face and this
be- mind of the protector the axis OF his scheme
The bank to have the privilege OF buying ndeante
amount notes for circulation and then throwing them
loans. But he fOrCets that he does not add a
dollar TO the loanable capital Of the bank by this
operation. There is no temptation TO bank
buy notes for circulation and pay cash for them dollar
for dollar 1t is only made object to buy them by
the seller taking nterestbearng securities for them and
paying the income of those securities TO the pur
chaser according present system. Herein con-
the only profit in the operation. II II not for
this, bank would have motive to become bank
OF issue at ali under the existing system.
II this error is not the pivotal point OF this scheme,
then it has got none. merely ordinary national
bank Of large capital with enlarged functions and
privileges but all within the ordinary banking sphere.
In short this is all il any way. IL simply big bank
which TO issue Its notes gold basis, redeemng
them in coin when presented. However meritOrious
such bank might be- the difficulty is it cannot be put
into successful operation along side of LOO other banks
whose issues are three hundred millions, and green
back and fractional circulation Of hundred millions
more which aggregate circulation is in q state of chronic
deprecation varying from per cent and Is given
entire possession OF the field This is especially the case
when Congress supports by an overwhelming majority
this state Of dishonor and disgrac ana Ostentatousy
defends and sustains without blush condition OF such
needless. shameless bankruptcy


The only merit OF suCh appearances az this before
these two highly pleasing and polite, but inert and i'll
sensible and totally demorazed Qn financial sense)
Committees is the occasion it offers 10 stlgnatze and
Congress FOR its want of intelligence, its
want Of courage and its want Of moral tone on
the whole financial question. 1t Is not necessary 20
pursue Mr. Loudon's scheme further, waste time
showing up its preposterous propositions;
SUCH example, that the existing banks might now
largely their loans in the face OF his own show
Ing that these lOant now Sl20OOOO or s45OOJOOOO
capital and something over S5OO0OOO0O OF deposits.
Neither II necessary undertake the useless task Of
trying imagine how the magnificent results ne adNer-
tses can be achieved by his method OF getting up g
bank II is all moonshne Credit Is not capital, ana
there need Of agencies to enlarge operations
ON this basis Anything that would bring to specie
pavne O. would be good but TO do this We first need TO
blister the back OF every member of Congress- On this
subie they hfeless as II they Aao Deeh III 'er
e-r,ves for forty centuries. j. :. r.