"Why, money. Don't you see? Why, it is a first mortgage on all the property of all the citizens of all the United States." [Laughter.] "Don't you see the stamp of the government?" [Laughter.]
Says the Admiral: "Where is it payable?"
"Nowhere." [Laughter and applause.]
"To whom is it payable?"
"Nobody." [Laughter.]
"When is it made payable?"
"Never." [Renewed laughter and cheers.]
"Why," says the Admiral, "I don't know any such money. My orders are to collect this $50,000,000 in the coin of the world, and unless it is so paid my orders are to blockade every port of these United States, and here are all the navies of the earth to assist me, and to burn down every city that my guns will reach."
Honesty is the best policy with nations as well as with individuals. [Cheers.] "Well," they say, "perhaps you are right about this bond business. It is an open question, and we will abandon that, but the national banks—down with the national banks! [Laughter and applause.] Abolish national banks and save interest." What do you want to abolish the national banks for? That is a living issue to-day—a present proposition of the Democratic party that I propose to hold up to your abhorrence before I get through to-night. What do you want to "down with the national banks" for? I was in the Senate of the United States when that national banking law was passed. I was a member of that body and voted upon every proposition made in it. I had had a little experience in state banks myself. [Laughter and applause.] Michigan had a very large state bank circulation at one time [loud applause], and we called that "money" in those days wild-cat money [laughter], and it was very wild. [Renewed laughter and applause.] Chicago also had a little experience in those days as well as Michigan. In those days it was necessary for any man liable to receive a five-dollar note to carry a counterfeit detector with him for three purposes. First, to ascertain whether there ever was such a bank in existence. [Laughter and applause.] Second, to ascertain whether the bill was counterfeit, and, third, to ascertain whether the bank had failed [laughter]—and as a rule it had failed. [Laughter and applause.] Now, we had two objects in view in getting up that national banking law. First, we wanted to furnish an absolutely safe circulating medium, so that no loss could ensue to the bill-holder. Second, we wanted to furnish a market for our bonds which had become somewhat of a drug. We might just as well have put in state bonds as security for those bank notes. It would have been just as legal, just as right, but we didn't know which one or how many of those rebel States would repudiate their bonds, and therefore we didn't put in any. [Laughter and applause.] We might just as well have put in railroad bonds, but we didn't know how many railroads would default in their interest. We might just as well have put in real estate, but we didn't know whether the neighbors of the banker would appraise the real estate at its actual cash-selling value. [Applause and laughter.] And therefore we put in the bonds of your government at 90 cents on the dollar; so that to-day for every single 90 cents of national bank notes afloat there is 100 cents—(worth 102½ cents)—of the bonds of your government deposited with the Treasurer of the United States for the redemption of the 90 cents. [Applause.] And you don't know and you don't care whether the bank is located in Oregon, in Texas, in South Carolina, Mississippi, New York or Illinois, because you know there is 102½ cents to-day of the bonds of your government deposited with the Treasurer of the United States for the redemption of every 90 cents of national bank notes you hold. You don't know and you don't care whether the bank whose note you have in your pocket failed yesterday, last week, or last year, or whether it ever failed. And you never find that out, for if trouble comes the bonds are sold and your bank notes are redeemed the day after, or the week after, or the year after your bank has failed, precisely the same as though it had never failed. [Applause.]
Now you say, "Call in your bonds; abolish the national bank notes." Very well! You pass a law to-morrow repealing the charters of all your national banks. Call in the national bank notes! Every national bank in America takes the exact amount of the circulation which it has, either in silver or gold or greenbacks, to the Treasury, leaves it there to redeem its notes, takes the bonds and distributes them among the stockholders of that bank, and the day after you have called in every national bank note that you have out, you pay the self-same amount of interest on your bonds that you paid the day before, not one farthing more nor less. You don't gain one cent, but you lose $16,500,000 of taxes paid this year and last year and every year upon the stock of the national banks to national, state and municipal governments. [Applause.] You gain nothing, and you lose $16,500,000. You distress the whole community of these United States by compelling your banks to call in $850,000,000, now loaned and now being used in commerce, manufactures and all the industries of the nation. You distress the people by forcing a recall of that amount. No, my friends, in my judgment you had better devote yourselves to something you understand, and let the national banks alone. [Applause and laughter.]