New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-11-20

private parties at four months, Is gone, and
hence the banking business is stopped. All
this would involve an immediate depreciation
in the value of the greenbacks themselves.
Either the Government must employ the banks
"a agents to resume their discounting, using
its creenbacBs instead of their own notes, OF
else the system of State banks must be re-
yiyed. Assuming that the revival of the State
hanks is not what Mr.. Pendleton is driving at,
we are brought to the question, On what terms
vonld the banks resume discOunting and cir
culate greenbacks instead of their own notes
II is essential to the safety of the banks that
the discounting shall be done at the risk OF the
banker. This cannot be, unless the banker Is
RESPONSIBLE for the redemption of the notes.
II is essential to the safety of the banker that
when he gives demand notes for notes payable
at q future time, he shall have the full interest
on the currency. This he cannot do it the
Government charges him anything for the use
of the currency. 1t is essential to the safety
of the community that if the banker furnishes
the currency at his own risk, and has the IN
terest on it while it is outstanding, he shall
give security for its redemption; and nc secur-
ty could be so good as that of Government
bonds. Thus, unless we reestabhsh stare
banks, which nobody desires, or abolish bank
ing altogether, which is impossible, or convert
the United States Treasury into gigantic
Bank of Issue and of Discount, with agencies
in every city, like the Bank OF England, when
we do MT like, the very necessities incident TO
the maintenance of paper currency dnve US
right back to the three fundamental features
rsg flaf
currency shall be furnished without interest by
the Government that it shall be issued at the
risk of the banker, and that it shall be secured
by Government bonds. Our objection TO
Mr.. Pendleton's crude theory is that II
lis utterly absurd, unsophisticated, ana
impracticabe that it ignores the fact that pa
per money can only be maintained at par by
making it redecmable; that it can only be kept
in circulation and made redeemable through
some banking system that Mr.. Pcndleton pro-
poses to destroy our present National Banking
system. and to substitute nothing i'll its place !;
that his policy would dopreciate the green
backs to a third of their present value, and
would Immediately precipitate disastrous col
lapse in our financial and business interests,
without accomplishing single beneficial result.
We must have a banking system of some KIND
We could do better without railroads than
without banks. The only question is whether
the Government has driven good bargain
with the bankers under the present system
If they have not, they have the power to amend
the bargain at any time. They can drive 1t
closer and closer, until they drive the banks
out of the business. II has been shown that the
banks now pay in taxes about all the interest the
Government pays them on their bonds. Tho
profits of the banks have been about proper
tionate TO those in other kinds of business.
But we do not object to any amendments to the
National Banking law whereby the Govern
ment will drive q closer bargain, give less and
get more but Mr.. PendletOn's so-called plan
simply destroys the banking system and substi-
tutes nothing for it. The theory that Govern
ment can save any sum whatever by destroy
ing all the banks is prcposterOus. IL is one Of
those crude destructive vagares which men
out of power, and diyested of all responsibility,
may advocate, but which, if they were them
selves in power, they would have too much
sense to carry ont.