Year: 1870

| Otuteb, mas IoVOre0 tno puDio "ASA ~~>


letter, which we published yesterday, on the


subject of the currency and specie payments.


He rather likes to ventilate his ideas In this


way, when some one gives Linn the occasion,


by communication or q pamphlet to the


point, and we must say he does it well upon


his own financial theories. He is clear
headed man, and, considering the position he
holds, and his experience through the whole
period of that new experiment In currency
and national finance which the war developed
or brought about, his opinions are entitled to
respect Then, as we have seen on several
occasions, and particularly in this last letter,
he learns by experience and is not afraid to
acknowledge any change Of opinion which
time or circumstances may have produced.


Though Mr.. Spinner was an earnest advo-
cate Of the national bank system, and aided
greatly in fastening it upon the country, he
begins to see the evils of it, Though he
eulogizes Mr.. Chase for doing ''more than all
other men and things combined to save the
nation from destruction" by his financial
skill-meaning, chiefly, by the creation Of the
national bank system-he has now some ap-
prehension that the national banks may prove
dangerous power, and that they may retard
or prevent the return to specie payments. In
referring to the arrogance of the banks he
says, 'sYou can scarcely believe the extent to
which some of them exhibit it," He then re-
fers to case, by way of example, that lately
came to his notice, in which board of bank
directors passed resolutions, and sent copy
of the proceedings to the member of Congress
from the district in which their bank is located
instructing him 10 oppose the Funding bill.


Mr.. Spinner says he did believe at one
time ''that so great number of these institu-
tions would not act in concert for evil, and
that they would, therefore, not be so danger
| ous to our institutions as single machine,
managed, perhaps, as a political power and
for political purposes by the government Of
single banking institution, like the Bank OF
the United States; but coufess," he frankly
remarks, ''that the recent conduct and pre-
sent attitude of these banks have gone a long
way towards satisfying me, as it has, no doubt,
many thousand others, that your views (of an
exclusive currency Of United States notes)
may after all, be for the best interests Of the
people"


Light is breaking, then, upon the Treasurer
Of the United States, who was scarcely less
instrumental than Mr.. Chase in establishing
the national banks, and upon "many thousand
Others" as to this dangerous monopoly. For
| years we have been telling the public and
| government that the system was an infamous
one; that it robbed the people and the Treasury
of twenty millions or more year, that
| it rendered no service to the government
or country in return for this stupendous
sum; that it was O shortsighted and stupid
policy to concede the rights and profits of q
national currency to private corporations;
| that these banks would combine and be as one
for their common interests; that they would
prove stronger than the government If per-
petuated, and that they were dangerous to the
material interests of tho people and institu-
tions of tho country. There never was a
greater fraud upon the American people. BY
the lavishness and stupidity of the govern
ment these banks make from twelve to fifteen
per cent on the capital invested-six per cent
| in gold on the bonds lodged in the Treasury as
security for their circulation, and from six to
nine per cent on the profits of that circulation.
| A national banker has a hundred thousand
dollars which he invests in interest-bearing
bonds, and the government gives him ninety
| thousand more in currency notes-nearly
doubling his capital or property without any
consideration. This is surprising act
of gratuity and an easy way Of
making money. This is Independent, too,
of the profits on the legitimate business
of banking in making discounts, loans,
and so forth. Let it be remembered
also that large portion of these gains,
that is, twenty millions or more year,
comes from the people-a sum that might be
saved and go into the United States Treasury
if legal tender government notes were
substituted for national bank currency. And
who would not rather have legal tenders and
uniform currency than the bank notes and
our present mixed currency2


But there is another strong reason why the
national bank system should be abolished OF
modified, and Mr.. Spinner begins to under
stand that He Is q hard money man and
urges the resumption Of specie payments. HI


says :-"Thc government could at any time ar


range matters 80 as to be able to resume II


ninety days were 1t not for its endorsement Q


the national bank notes. But the banks ar


not prepared, and they manifest no disposition
to prepare themselves for an honest resump
ton OF specie payments. Should the govern


ment resume under such circumstances an
| banks refuse to do 80 the effect would be
| throw the redemption of all the circulatin
D notes of the banks so refusing upon the Trea


sury. Such a load at such time woul
, probably be too heavy for the government
, carry, and relapse would follow. So you sc
| tho hanks haua IL in their mower to preYeI