The Plymouth Democrat. (Plymouth, Ind.) 1869-1941, 1869-12-09

CuIItHCy, lOI, dlteI tucy are ItuCtllSO, !
they are in the treasury and cannot again |
be paid out, except upon appropriations
made by law, in accordance with the con- |
stitutional provision, and consequently
cannot again be put in circulation, except
as disbursements may be necessary to pay
expenses and debts of the government.
So that government circulation is convert
ible, and therefore is not elastic, and cannot
be made so without first making radical
change in the organization of the United
States Treasury, by which it should be
converted into huge banking institution
calculated to receive deposits, make loans,
and otherwise perform the functions of
National Bank.
The notes issued by National Banks are
nominally redeemable; and, if the legal
tender notes were out of the way, would
he actually so, and, being issued by insti-
tutions in sympathy with trade, would
contract and expand in obedience to the
law of supply and demand, so that they
would also possess the clement of elias
ITCHY.
AS to the comparative merits of the
two different kinds of currency, an impair
tial consideration would probably decide
in favor of bank circulation, principally
because it would possess the power of
adapting itself to the exigencies of trade
If government issues could be made to pos
sess the same power of adaptation, the YER
dict would be in their favor. A candid
investigation, however, cannot fail to de-
velop the fact that there is no branch of
the fiscal service adequate to the direct
issue and care Of such currency as the
country requires The Treasury system is
so arbitrary in its collections and disburse
ments, so little in harmony with the bust
ness interests of the community, that it
frequently absorbs large amounts of cur
| rency at most inOportune seasons, and dis
| burses them with Just as little regard to
the wants Of trade.
So long as the collection of revenues is
| liable to be process of contraction, and
| their disbursement a process of initiation,
| the agencies through which collections
and disbursements are effected cannot be
| regarded as suitable agencies for furnish
| ing sound currency to the people.
| The argument that the government
| should furnish the currency in order that
1t may realize the profit upon its circula
/ ton Is a common one, but will not bear
scrutiny. There is no profit to the govern
| ment on the circulation of an inferior cur
| rency. Only sound currency will pro-
mote the material prosperity of the people;
and the government can realize no profit
| from anything detrimental to their inter
| estS. AS currency, therefore, govern
ment issues are not profitable AS loan
without interest they are equally unprotit-
able, because they are injurious to the ma
tional credit, and add enormously to the
| expenses OF the government.
Ii, however, it is impossible for the gov
eminent to comply with the conditions
| necessary III order to furnish sound cur
rency, 1t can at least provide for the with
drawal OF Its own notes, and prescribe the
| conditions upon which, and the agencies
through winch, better currency may be
provided. AS before stated, there should
be put one paper currency in the country,
and that should emanate from source that
is influenced by, and is amenable to, the
laws OF trade. No check or limitation
| should be imposed upon it, other than the
law OF supply and demand.
FREE BANKING.
A self-adjusting currency is the only one
that is adapted to the eXigencies of trade,
and to the wants of the country and it is
vital question at this time, whether this
result can be reached before the return of
/ specie payments. If possible at all, it is
only possible through the agency of the
National Banks. The machinery of the
| government is not adapted to such ends.
And further, if possible, it is only upon
the adoption of a policy which will tend
| gradually but surely to a RESUMPTION OF
specie payments. 1t must be the gradual
development Of process which shall alb
serb legal tenders, and put in their place q
paper currency which shall at all times
and under all circumstances be exchange
able for coin, either of paper, illegal tenders)
| or OF Sold-a paper currency which shall
gradually increase, while the legal tenders
tor its redemption shall gradually decrease
Id such a ratio as healthy demand fol
banking facilities may determine.
Where banking facilities were already
abundant, there would be no inducement
Tor the establishment of banking institu
tons for the issue of currency upon con
dltIons that would inevitably diminish the
volume of lawful money applicable to its
redemption, and SO gradually, but surely
enhance the cost of such redemption
while In other sections destitute, in whole
or N part, of banking facilities for the
legitimate demands of business. the neces
sity for banks and currency would Justify
the increase of bank circulation, nGtwith
standing the fact that by such increase
the burden of its redemption would also
be enhanced
The entire South AMI MANY portions o.
the West arc very much in need of the
facilities and advantages to be derived
from properly organized banking institu
tons, amt their necessities would Justify
them IN deliberately adopting measures &c
supply their wants, the direct tendency Of
winch would be to hasten the return OF
specie payments in the manner indicated
20 VIII, by the increase of bank notes, anC
the absorption OF the legal-tender notes
As the former increased, the latter woul(
diminish As lawful money became
scarce, Its value would be enhanced, anC
would gradually approximate to par will
goid. thus specie payment may b.
reached through the agency Of the Ma
tional Banks, and by the operation o
natural causes. The process will not b,
, rapid or spasmOdic, because it will in al
It's stages, and in all its details, be governed
by sound principles and conform to estab
lish laws. At the same time, the benefit
/ and advantages of the National Bankin:
. system would gradually become NOR,
equally difiused, until all sections woulc
at length get their just and equal share
apportioned beyond cavil or objection be
cause regulated by the actual re9uirement
, of business
, While free banking may thus be estab
lished with safety, anterior to specie pay
/ ments. conditioned only upon the with
} drawal and cancellation of a legal tende
dollar for every dollar of bank currenc'
: issued, free banking upon a specie basi
may also be permitted, with equal salty
and without delay. With details properl,
adjusted, banks may be established witt
authority to issue and put in circulation
: gold notes-limiting the amount only by tn
J ability of the banks to comply with tn
necessary conditions, and TO redeem thei
, Issues. Some provision of this kind i
, probably necessary in order to supply tn
: Pacific and producing States with
, paper currency. A circulating medium
cheaper and more convenient than coin