Year: 1870

WASHINGTON. Apn 23, 1870. !


DEAR SIR-Your letter OF the 2Ist inst. has been
celved. Your bank is doubt all right, and willing
TO do all it can 'volunariy and without compulsion"
to assist the government to fund its debt at low
rate OF interest, ''under any bill founded in eluy.n
There Is Just where the difficulty lies. Who shall de
clia what equity ss Shall 1t be the people, through
their representatives, through whom the banks were
created and now still live, are the banks to decide
what equity is in their own avors Congress has re-
served the right to ''at any time amend, alter
peal the actD under which you and all the other
tonal banks organized, and, OF course, has the
right to prevent the banks from issuing any
circulation whatever; and II it authorizes them
to issue any paper money, it s on just such terms
and conditions as it may choose TO grant them.
II Congress shall think t to enact that the govern
ment shall hereafter issue all the paper money, and
the backs none, you would probably take up your
bonds OF 1881 and sell them, and invest the avs In
some other way; and II It should pass a law that
none other but the bonds OF the new proposed law
shall be deposited by the banks security Tor the
redemption Of their circulating notes, you would
probably sell your 1881 bonds at large premium
and invest in the new bonds at par. There is no
compusion about this, nor Is there any about the
Funding bill now pending in the House of Represen-
tat ves Under that bill, II 1t becomes q law, the
banks may sell continue to hold any desirable
United states stocks that they now possess All that
will BE- required OF them will he tlat in case they
desire to continue to issue the CIRCULATING NOES
they must deposit stocks OF the new loan t. secure
valuable franchise that Conge grants to the banks
Is certainly no very great hardship.


Now let US look at your own particular grief.
bonds due In 1881 on which she paid premium In
March, 1855, OF nearly $4,000 because she thought
during that time the government would not disturb
them. The bill now pending does not propose Ito
disturb them" You may commune to hold them,
and continue to receive in the uture as you have In
the past, your SIX per cent per annum interest In
gold, or you may sell them and at present rates
receive more than their lace value in gold.


You say for your bank that "she acknowledges
that the government has the power to compel her to
substitute . four four ano half or tive per
| cent bond for theser-meaning the bonds OF
| 1S61-"but she is unable yet TO discover how
| It can be done in honor, justice and good iaith'
great injustice Is about TO be done 70 your bank The
| people will, however, be apt to take your own state
ment OF the case and, after doing little cipherng,
will say TO you that their view Of the case Is that
your bank bought these bonds at about Ill In cur
rency, at time when gold stood at pol, which would
be about equal to 55S in gold; that you have since
| then received back again on the nominal amount
for interest," thirty per cent In god that you bought
these stocks with your own circulating notes, on
which you have not paid cent Of interest, and
that you can now sell these bonds above par In gold
and that should you sell them, you viii receive
and have Yscsieed on the $4,000 or United States
stocks so purchased, held and sold by you 500 In
gold r which nc paid Ave ago. In then


less duties and taxes, this single little investment
| OF over $27,000
Now there are few people who would not like to
| have the government "honor'' them with just such
| Justice and good faith The wonder Is that any one
should be disposed to find fault with such treatment
| II Is doubted whether any individual man would.
| But you speak for the bank, and banks have been
said to be s0uess, and the under consideration
does not go very far In dsprovng the saying. To-day
gentleman said in my hearing that not corporals
guard could be found voting for the Funding bill now
before the House, unless the section in regard 70 he
. IL.


won't believe 1t until see It, and then we shall


what we shall see, what the people will have to say
on the subject.


Being bank stockholder my interests are idcnti


cal with others who, like me, have interest IN


tiOnal banks. am, therefore, In the enemy


OF these banks On the contrary, would have them


continue " live and prosper, and it iS this