The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-10-30

would believe the story that the balance sheet between
hs banks ana the people shows that tho banks lose
per annum ON their privilege OF issuing three
hundred millions OF circulation IL hardly stands to
reason tlat thoy should desire TO retain privilege
WHEREBY tney lose nearly eleven millions year Capt.
taists DO not invest their money banks for such
puIpose, ana no power IN or out OF the governments
could force them 10 keep out circulation which was
costing them more than they realized from It's use.
~ ascertain what the government would lose and gain
py substituting greenbacks for bank notes. must ex-
anime me question not from the bank standpoint, but
save the interest on many bonds the three hun
dreu millions OF bank notes would purchase. rne
alket price OF those bonds from 100 for ten
tories 70 iuo Tor the nvetwentes averaging lO3 Inc
oanK notes would therefore purchase 900 milions'of
lhe ihe teniorties draw i've per cent interest, and
the nve.twentes six per cent and the banks about
an equal amount Of each The interest then average
nve ana ha per cent, which on the two hundred and
ninety millions amounts to $4,000, 900 in gold, or
$z5ooo OV0 IN currency. This would represent the
gain 70 inc Treasury by substituting greenbacks for bank
notes But from this must be made the following de.
ductons:-
TS-The bank reserve for the redemption or circula.
ton, 000 which could be put into circua.
uon Without Initiating the currency TO that extent Tue
81, 100000
.s Seeo ana one per cent per snuum tax on
$30o, 600 900 OF circulation, which is So OO0 0o0
Third-one-third the present tax on dividends and
81, l00, 00O
These three items amount to S.. 500 600. But dc.
prvation OF the privileges Of issuing notes would
doubtless cause many banks to wind up and surrender
SLOCkuOluorS
IN way to escape dividend, license and deposit taxes
These losses may be safely estimated at S. 500 900,
which W. n added to the sSsoo,0o0 make total OF
I'll 5ooOoo Deduct this from tho $23 000. 600 and
there remains sll.700,000, about one-half Of the
supposed gain 10 DO derived from the substitution Of
greenbacks for bank notes We have taken into
account the State municipal taxes CHI the banks
pay because the stockholders would still have TO pay
State taxes on their capital whether they issued bank
notes or not
Ru there Is another point OF view In which the ques
ton should be considered Have the people decsirely
made up their minds TO retain the ereenbacks
CURRENCY II they have not would be great folly and
stupidity to break up the national banking system for
the sake OF small saving for a short space Of time
The greenbacks being retired ahd burned at the rate
OF nifty millions per annum, and In few years will
all DO out Of circulation unless the present policy s
changed The Tribune has strenuously opposed the
Treasury and tho President backed by the
great copperhsad capitalists OF New York whose organ
IL the World, and the New England capitalists sup
ported BY tho New York Tribune have persisted In with
drawing inc greenoacks from circulation for the purpose
OF Fastening specie resumption they declare We
IN ormed that considerable portion Of the Presidents
forthcoming message VIII be devoted to the advocacy OF
retiring the legal tenders from circulation. Now
course or the other should DO pursued. lf
retain greenbacks for circulation bank notes
needed II the greenbacks are to be Withdrawn We can
not spare the bank notes. but shall be obliged to in
crease them. note Ia promise to pay the amount Of
ifs face on demand or when due In gold or Its equva-
thing But national bank note Is promise to pay the
holder-in what2 In another paper promise which, in
turn, IS irredeemaoe Inc govern mont whch issues IL
refuses to redeem In coin In any tangible property
or TO receive II for duties imports to give the
holder an bearing bond for It, bank note thus
redeemabe Is monsrosity and burlesque financial
principles and should not be tolerated II ID tho obvious
duty Of the government either retire the
allowing the holders to fund them into bonds and thereby
compel the banks TO redeem their notes in coin its
equivalent, 10 substitute them with greenbacks and
then enhance the purchasing power Of to par
with gold. Can the latter be done2 II cannot, 1t
clear that they should be retired from circulation
and make room for currency that can BIO redeemed in
coin on demand. We have seen no plan proposition
for raising the value Of greenbacks 70 par but great
many schemes for depreatng them to the level of tho
French assgnats the Continental currency or the Con-
federate shnplasters In subsequent article shall
discuss the possibility Of making the legal tenders worth
their face In gold.