The National Banks
May 28, 1870
The National Banks and the National Government are debating who has the right to issue money as well as the implications that the National Banks holdings have on the economy.
The National Banks. Treasurer Spinner has written a letter to Gaines Wells, Esq., of Patterson, N. J., in reference to the national banks, in which he says the prospect now is that the national banks will succeed in preventing the passage of any bill that will in any way interfere with their present privileges and profits, and there certainly can be no chance to compel the banks to take new stocks drawing but one to three sixty-live-hun-dredths per cent, in lieu of the five and six percent, stocks that they now hold, and have deposited in this office. Their blind and selfish course will no doubt force from the country the question whether banks shall be permitted to issue any paper to be used as money, or whether all money shall not he issued by the Government itself, and thereby save the people in interest from twenty to thirty millions in gold annually. With the rejection by the House of Representatives of the Senate bill compromises between Congress and the banks will probably end, and the whole question of banks and the finances of the country may then be fought out at the polls.
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“The National Banks,” Reconstructing Virginia, accessed October 27, 2020, https://reconstructingvirginia.richmond.edu/items/show/1692.