they are only brokers, receiving from government its promises to pay, and loaning them to other parties, let us look at the facts as they exist.

The private corporation deposits its bonds, and in return receives from government its promises to pay in what is called "currency," with authority from the government (the principal) to loan these promises to pay. There is not any money in the transaction, save the gold interest the principal (the government) pays to its agents (the brokers) on their security deposited with their principal. They are organized under the laws of congress, but do not add a dollar to the amount received for circulation, or to the currency of the country. They receive money on deposits, and become the agent of their depositors, with the implied or expressed agreement that they will safely keep, and on demand return, these deposits. Without a dollar of their own, save the bonds deposited with the comptroller of the currency, as collaterals for the return of the currency received, they transact the business usual in their line. They make loans, and not unfrequently buy and sell stocks. Of course they are expected to be able to account to their principals (the government and depositors) when called upon for the amounts received of them respectively. With the government they have agreed to redeem in treasury notes the amount of currency intrusted to them. With their depositors they have agreed to return the amounts deposited when called upon for that purpose. They are not required to settle with the government until they fail to redeem with treasury notes the currency paid out at their respective counters. Prudence in the management of their agencies, and the pursuit of legitimate business, would preclude their inability to pay their deposits. As we have already shown, these government agents had loaned more currency than there was in the whole country, treasury notes included. While many of these agencies had acted honestly, and pursued a legitimate business, many had dealt recklessly in bonds and stocks, while not a few had gone into worthless and dishonest railroad schemes, and, as a natural consequence, at the present time, when depositors want their deposits, these banks have nothing for them, and announce

that they have suspended payment. Suspension means that the banks have not the means with which to fulfill their contracts. The peculiarity of the system is, that they have neither currency nor dishonored treasury notes with which to pay depositors. The distinction between suspension and failure is this: when a bank suspends it refuses to pay out one class of irredeemable paper for another; a failure occurs when the bank has neither class of irredeemable paper to pay. Suspension formerly meant a refusal to pay coin in redemption of bank paper. The reckless and dishonest conduct of some of these government brokers or bankers has made it necessary for those who are pursuing a legitimate calling to refuse to pay out greenbacks as a matter of self-preservation, and to save their customers and depositors from loss.

An amendment to the banking laws so as to allow all who desire to do a banking business, the privilege of banking upon the condition that they purchase from government currency to the amount desired, paying therefor in coin, or government bonds, without limiting the amount of currency would render it impossible for Wall street, and dishonest and reckless specnlators elsewhere, to get control of the finances of the country, for they could not know what amount they would have to control in order to unsettle business, and create a stringency in the money market. But as the measure of values in this country, as announced by the supreme court, is not coin, but treasury notes, a preferable plan would be to so amend the laws as to use treasury notes as currency instead of the paper now used, and provide for its redemption in coin. Nor need there be any limit to the volume of treasury notes so issued, provided the banks receiving them gave ample security for their redemption in coin. To this plan it might be objected that the volume of the circulating medium would become too great. The answer is that it is impossible to limit the amount of coin: demand and supply is the only law that can control it. The same law of demand and supply would fix the volume of currency. When banking ceased to be remunerative, because of an oversupply of currency, bankers would do like other men in other pursuits that ceased to be remunerative-they would engage in

other business. No loss would result from this system of banking. Government would be secure for the amounts of bank notes, and the holders would be secure for two reasons: 1st. The banks would be compelled to redeem in coin, or suspend business. 2d. In case they failed to redeem, the holder could call upon government for payment. There would be no difference between this class of currency and coin, and specie payment would be resumed without any disturbance of the legitimate business of the country. Money panics would be impossible; the legal tender decisions would be harmless, the measure of values would be stable, and the occupation of coin brokers would be gone.

The present financial disturbances demonstrate the fact, that the present banking system instead of affording aid to legiti mate business, has become the most powerful auxiliary in the raids upon the honest industry of the country by that class of men whose only employment is to prey upon the public. The ingenuity of man could hardly devise a more perfect plan for placing the finances of the country under the control of a few men. They know how much money there is in the whole country; they know where it is; they know from bank reports the amount of aid to be expected from that source, and what amount of the circulating medium must be cornered, or withdrawn from circulation, in order that the desired object may be accomplished. So well had their plan been formed and executed that the distribution of ten or twelve millions of greenbacks in Wall street had no perceptible effect upon them. Availing themselves of the facilities afforded them by the present banking system, they were able to defeat the secretary of the treasury in his attempt to relieve the people. The lesson we learn from these recent developments, is, that while the general government has the power to coin money and fix its value, it cannot successfully manage the commerce of the whole country by attempting to drive coin from circulation, and supplying its place with a limited amount of irredeemable paper.

It will not be out of place to remark in closing, that if it is not within the wisdom or power of congress to devise some

better financial system for the country, the policy of intrusting it with the management and control of all the railroad corporations of the country might result in general disaster to the people. We ought not to expect any real relief from national legislation on this subject after, as we have shown in our examination of the action of congress on the subject of railroads, that the greatest monopolists among all railroad companies are those chartered by the general government, and that bounties, subsidies, and favors have been bestowed upon these corporations by congress with an unsparing hand. The attempts thus far made by congress to fix the amount and the kind of money the people shall be allowed to have, and to charter and regulate railroad corporations, do not commend that body of law givers to the people as being the best and safest guardians of their rights and privileges. The present and future well being of our country, as well as the continuance of our republican form of government, imperatively call upon the people to remember that they are sovereign, and that they who assume to act as their masters and guardians, are but their servants, and that, as a sovereign people, they will resist all efforts made by congress for the purpose of centralizing power in the general government, ever remembering that the tendency of all power is to encroach, and that our general government has proved no exception to this rule; and also remembering that the first encroachment made by the general government upon the reserved rights of the states and the people, is fraught with more danger to their liberties than all subsequent acts of like character.