Page:Speeches, correspondence and political papers of Carl Schurz, Volume 2.djvu/521

Rh will of course enjoy the lion's share of the business. If gentlemen complain now of the grasp the monetary power of the East has on the West and South, we shall see that grasp not weakened but very much strengthened by what is here proposed.

Mr. . Will the Senator allow me to interrupt him?

Mr. . Certainly.

Mr. . I think, in the last remark he made, the Senator has forgotten that national banks cannot have more than a certain amount of circulation, so that I do not see how it is possible all the money should get into the city of New York. People have a right to establish banks with as much circulation as possible, but, no matter what the capital may be they can have only so much circulation.

Mr. . The Senator will admit that, although they have at present more than by the spirit of the law they are entitled to, if we pass a free-banking act, they can, in New York and New England, establish a great many more banks than now; nothing is to hinder them; and inasmuch as they have the capital and the bonds, they have greater facility in establishing these banks than the West and South.

Mr. . The Senator is right in part, but not altogether. They may establish more banks, but these banks cannot have as much circulation as they had originally. Besides that, I hope if we pass a general banking law there will be such restrictions as will prevent capital in New York from controlling the system.

Mr. . Unless those restrictions amount to this, that the people of certain States shall be prohibited from establishing new banks of issue while the people of other States shall be permitted to establish them, the restrictions will not be worth a farthing. The banks will