Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1869-12-08

but surely enhance the cost of such re-
demption; while in other sections
destitute in whole or in part OF banking
facilities for the legitimate demands Of
business, the necessity for banks and
currency would justify the increase of
bank circulation, Notwithstanding the
fact that by such increase the burden of
its redemption would also be enhanced.
The entire South and many portions
Of the West are very much in need OF
the facilities and advantages to be derived
from properly organized banking insti-
buttons, and their necessities would
justify them in deliberately adopting
measures to supply their wants, the di-
rect tendency Of which would be to
hasten the return of specie payments in
the manner indicated, to wit, by the in
crease of bank notes, and the absorption
Of the legal tender notes. As the former
increased, the latter would diminish. As
lawful money became scarce, its value
would be enhanced, and would gradually
approximate 10 par with gold. Thus
specie payments may be reached through
the agency of the national banks, and by
the operation of natural causes. The
process will not be rapid or spasmodic,
because 1t viii in all its stages, and in all
it's details, be governed by sound princi-
pies, and conform to established laws.
AT the same time, the benefits and adj
vantages of the national banking system
would gradually become more equally
diffused, until all sections would al
length get their just and equal share.
apportioned beyond cavil or objection,
because regulated by the actual require
ments OF business. e
While free banking may thus be es-
tablished with safety, anterior to specie
payments, conditioned only upon the
withdrawal and cancellation of a legal
tender dollar for every dollar of bank
currency issued, free banking upon a
specie basis may also be permitted, with
equal safety, and without delay. With
details properly adjusted, banks may be
established with authority to issue and
put in circulation gold notes-limiting
the amount only by the ability of the
banks to comply with the necessary con-
ditions, and to redeem their issues.
Some provision of this kind is probably
necessary in order to supply the Pacific
and gold producing States with a paper
currency. y circulating medium, cheap
or and more convenient than coin, has
long been a necessity in those States,
and would undoubtedly do much to pro-
mote activity, enterprise, and develop
ment. Experience has demonstrated TO
them that a currency composed exelu-
siVely OF specie is not exempt from the
to which money and trade
everywhere are subject, and has awaken
an anxiety on the subject, which may
to the Introduction OF paper money,
If the opportunity is afforded.
By the establishment Of banks on a
specie basis, the resumption of specie
payments is only anticipated; and famil-
iarity with gold values will do much to
the subject of the mystery with /
which 1t is associated in the minds of
many. Looking forward to the day
when uniform values shall again prevail,
it may be that, by wise legislation now
q banking system may be established, |
truly national in its character and scope,
will furnish a sound currency of
uniform value in every State of the