The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-21

| Of the constitution Of the United States. We
| respectfully submit to our wise men Of Con-
| gress this nice and consistent distinction be-
tween the States outside and those inside the
two houses as completely solving the dinacuhy
suggested. We must have some system Of
legislation and uniformity and consistency in
this business, or we shall never get through
with 1t.
Mr.. Pomeroy's Prepssitisn to Make National
Bank Currency Legal Tenders.
There are more absurd propositions made in
Congress on the subject of the currency and
national finances than on any other. This srises
in great measure from the ignorance of msm-
bers on such matters, but partly from the great
influence which the national banks have secured
In that body. Among the most Objectionable
and one Of the last measures introduced was
that Of Mr.. Pomer0y. Senator from Kansas
1t is called . bill to equalize the currency
Of the United States, and provides that
all notes Of the national banking associa-
tions shall be made legal tenders, to the same
extent and for all purposes for which Treasury
notes, called legnl tenders, arc so made. II
provides also for the withdrawal of govern
ment legal tenders from circulation-thes Same
~ the bill OF last session, only in a slower
manner fer the first year-thus looking to the
ultimate extinguishment Of the present legal
tender currency and the perpetuation of the
national bank circulation.
Mr.. Pomeroy makes the great mistake Of
beginning at the wrong end-of putting the
cart before the horse. If he had proposed to
withdraw the national bank currency and sub
stitute therefor government legal tenders he
would have been acting like sensible man.
We agree with him that it would be better to
have only one kind Of currency but it should
be government legal tenders, and not the notes
ofprivate corporations guaranteed by the gov
eminent. Why should the government give
these private companies-these individual CAPT.
talists-the benefit Of national circulation
worth more than twenty million dollars
year? What claim have these monopolizing
corporations 10 such an enormous gratuity
Why should the taxpayers Of the country be
called upon to contribute to the vast profits Of
these capitalists without any corresponding
advantages indeed, any advantages
at all? If they want to do banking bust
ness let them do it on government legal
tenders. In this way the people, and not
private companies, would get the profits
Of national circulation. If Congress
would substitute legal tenders for the
national bank currency it would with that
amount buy up or cancel the interest bearing
bonds now deposited by the national banks
from which these banks draw interest--some
three hundred millions or more-and thus save
twenty millions year to the Treasury. What
mora simplef What more natural? Yet our
dull legislators do not or win not understand it.
The Senator from Kansas assumes that the
national bank circulation is rs good as the
legal tender for currency. We DO not think so,
nor do. the people of this country think so; for
in great crisis the security given by the
banks for their circulation might mot realize
enough to redeem the1 notes The loss would
fall upon the people, either directly or inai-
rectiy, through the. government having to
redeem them, while everybody knows the gov
ernmcnt is always good for its notes. The Bank
Of England, all through its existence, has paid
largely to the British government for tho priv.
lege OF its circulation, and We. we make free
gift Of suoh . valuable privilege in thi.
country TO private associations. We do moi
believe that such state of things can continue
to exist; and as to the proposition to make
the circulation Of the national banks lega
tenders. il is simply absurd and dangerous
We hope some statesman may be found in Con
| gress who will mature bill OF a comprehen
sive character, which may be accepted, to Civ.
Us permanent government legal tender cur
rency and no other. That is the way to put al
end 10 all such tinkering schemes a. this 0
NJ. Pomeroy.
TAMuANY PAINTED BY A MASTER HAHnW