The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1867-11-01
ILL., Substitution of Greenbacks to'
Mammal Rank Nofss

XNuttUUuG Dunn 4vOtGS.
Your third question touches part
of the subject which most interests
Slic PUopic ~ Sne preseus siusS, s...d
which is most discussed and least
understood, by certain class of pol
iticians. My answer is this:
l. Even fit were true that the Gov
ernment is paying eighteen millions
annually into the Golfers of the Ma
tional Banks, which could as we'll be
saved to the people by substitution
of greenback currency, yet il would
be far better to pay this sum than to
have the greenback or Treasury note
system permanently fastened upon
the country. / regard the issue, by
the Government, of legal tender
notes to be used as circulating me-
dium, as an anomaly in finance. 1t
was purely war measure, justifiable
because necessary to the life of the
Nation, and, like other war measures,
should end with the return of pros
porous peace. 1t is not desirable
that the greenbaeks should be imme-
diately or suddenly Withdrawn. but
they should be gradually and surely
replaced with currency which is le-
gitimate and permanent.
2. 1t was an important part Of the
contract between the Government
and the old State Banks, when the
latter surrendered their State char
tiers, that il they organized under
the new National system, they should
be entitled to . certain proportion OF
circulation. This was also the prin-
cipsl inducement offered for the for
nation of new banking institutions.
Without this pledge Of circulation
few if auy~of the old banks would
have surrendered their charters, and
it would have been impossible to es-
tablish the natieual system at ALL
That circulation cannot now be taken
away without palpable breach of
faith toward the combined capital of
the Nation-such a breach Of faith
as would ever after render capital
timid, cautious, and backward in its
dealings with 3 government which
could thus disregard its pledges
However plausible the proposition
may seem, the people cannot possibly
be benefited by any financial meas
ure which practically repudiates the
contra cts of their government,
8. This claim would be equally
good against any system of bank
ing, for.the actual point Of the ar,
gument is, that so long as there shall
be a national debt, the Government
ought to supply all the currency Of
the country, in order to save interest.
Suppose the old State Bank system
were now in existence, with three
hundred millions of comparatively
unsecured circulation, there would
be still stronger reasons why the
Government should force the State
Banks to retire their circulating
notes, and itself supply the needed
currency. The people would, in this
supposed case, save just as much in.
terest as they would now save by re.
tiring the National Bank notes
Hence, the real question is, Shall We
have any banking system at all !? for
if the present excellent system be
DESTROYED, it would be impossible te
originate another which would not b
open to the same objections. If al
exclusively greenback currency b.
adopted, of course we can have M
system of banks, either State or Ma
tional, having the privilege of circu
Ilation. ,,.,,
J, 4. But it Is not true that the Gov
! Ierument would annually save eight
] cen millions OF dollars, or any par
! of that SUM, by destroying the y,
'tianal BANKING systtRs sas igasln