The Ashland union. [volume] (Ashland, Ashland County, Ohio) 1854-1868, 1866-10-03

Isails NADIA Now wo have no check
NJ currency being irredeemahls, and
oin mere merchandise, there is no check
imports. and no check on private pur-
hase aud general consumption except
he individual sense Of ability to pay
importation Of goods and supplies
ron ah5oad outruns the amount Of pro-
We beil. by more Than sl00, 000, 1000
Iysaa--a difference which in ordinary
ines would work a speedy bankruptcy
,ut now il is postponed AID covered by
be export Of Government bonds, which
10 lhe same effect as ,ifi The debt, for
,oods was paid BY note, and that note
'enewed when due.
The loss Of that controlling rover over
commerce here alluded to, which results
naturally from the conservative laws Of
thAds, d due entirely to the action Of the
Government in displaciug the natural
bank circulation Of the country, and sub
stiiu.ing Government paper money IN its
stead.
When the Government found itself
called on for large expenditures in ! s
preparations to suppress instruction, and
vas 90 destitute Of credit as to DO unable
10 horreu, the banks Of New York, Phil.
sdelphiA and Boston came forward with
IN offer TO lend the Government S100,.
100000, and 10 take in lieu Of it a like
amount Of six per cent bonds at par -
Without this voluntary act of the baLls
the Government was powerless. 1t could
not then have been expected THAI within
the space Of two wears the same Govern
ment would bave turned uponfhese banks
to supeisede them with q new scheme Of
banking, and with o threatended penalty
added II they did not yield and accept the
new scheme to tax them out Of existence
with IN imposition Of an annual penalty
Of ten per cent. on the amount Of their
circulation.
Tho Secretary Of the Treasury bad in
formed the country that the banks of the
States had q circulation Of $4,000, 900,
which was 80 much n oney borrowed from
the public without interest and that the
Government ought to have the benefit Of
that loan. So, instead Of selling their
bonds at the price they would bring in
the market, which price would, Of course,
be less and less as the supply increased,
the Government commenced tho manu-.
facture Of "greenbacks,' and paying them
out as money to tbs amount OF $500, 000,.
900, which swelled the volume Of paper
money just 20 much more. As au argu-
nent Tor doing this, the Secretary said
that ID would be disgraceful for tho Gov.
ernment to pay out suspended bank pa.
per and to avoid this discredit, it was
made TO pay out Treasury notes which
could not indeed be called suspended pa
per, because it had never begun to have
TIE qoakties Of redempti' n. There was,
moreover, q pledge connected with the is.
q Of this Government paper, that these
notes might be converted into six per
Cent. bonds at the will of the holder ;
out after the notes were all issued, and
the Secretary had med Of some new
shift, he advised the Congress to revoke
that pledge, and the revocation was made
accordingly. This career was vouched as a
masterstroke Of finance, and the public
presses announced from week to week the
amount Of public debt-so much bearing
interest, making q boosted average Of two
per cent, to three per cent on the whole =
and finally to get the full benefit of the
bank circulation said to be borrowed from
the public without interest the scheme was
made and pressed to create under author.
ity Of Congress ~ a new ret OF banks to
be called National, which should pur.
chase $3.50, DOC, 900 Of six per cent boeds,
on which they should receive 500, 0O0, 900
Of annual interest in gold, and, in rcquit.
al, they issue to the public $500, 600, 900
Of notes Of "uniform pattern" thus Dor
rowing from the public, without interest,
nearly twice the sum which the Treasury
set out to gain and enjoy, and which it
now abandoned to its National Banks
If il was disgraceful for the Government
in 1862 to pay out the suspended notes
Of proper and lawful State Banks, il
could be no less ~disgracoful now 10 create
O large amount OF irredeemable bank pa
per, which the Government bound itself
in advance 10 receive for taxes, and, Of
course, to pay out to its creditors.
As the result Of this plan to avoid pay
ing cut the notes Of "~suspended bal KS"
We have run 1850 Banks with $500, OO0,.
900 Of circulation Ground numbers, re-
deemed 10 treasury notes, If demanded,
and 10 these Banks Is paid $40, 1000, 900 a
year in gold, TO requite them for giving
TO the public $500, 100000 Of notes on
whish they pay no interest, and with
which they virtually purchased their gold
interest bonds. And as q result. Of the
whole. instead Of the $3.50, OO0, 900 Ell
true Brink circulation before the war, We
nov have S500,000, 600 Of Government
paper money, not eedeemable, $500, OO0,-
900 Of Bank notes which may be paid in
Government paper Of the same value, IL
any one shall make q demand for pay.
meht.e ------ i
These Banks have q great and direct
interest In maintaining the present condii
ton ofthings. 0nthe Government bonds