NATIONAL BANKS. 497 



"The present state of things seems favorable to the 

 substitution of national bank notes for greenbacks, and to 

 that end I venture to submit for the consideration of 

 Congress the following measures: 



FUND INTO BONDS FOR NATIONAL BANKS. 



"ist. Funding into bonds the greenback debt of 

 $346,681,016, or so much of it as may be presented at the 

 treasury within a limited period of time, say three years. 



" 2nd. The bonds to be issued only to national banks 

 presenting greenbacks for that purpose; to bear a low rate 

 of interest, not exceeding 2 y 2 per cent. , and to mature only 

 upon the failure of the bank or upon its dissolution, 

 whether voluntarily or upon the expiration of its corpor- 

 ate existence. 



U 3rd. The bonds so issued to be available only as a 

 deposit to secure national bank circulation, and to entitle 

 the banks depositing them to receive circulating notes 

 to the amount of their face. ' ' 



Mr. Trenholm adds, as his reason for the adoption of 

 this policy, the following: 



"The national bank system will be restored to 

 healthy activity and stimulated to fresh growth especially 

 in those parts of the country where they are most needed 

 and are found in least numbers. " 



It is certainly evident to every thinking and unpreju- 

 diced mind that the two great parties have joined hands 

 on this issue and are determined to perpetuate the national 

 banking system. It is a part of the programme of the 

 Hazzard circular, 



