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

The banking system now in operation
under the act Of Congress is doubtless an
Improvement upon the condition Of
things that prevailed prior 70 its inaugu-
ration. 1t may have imperfections, but
most of them can be traced to the evils of
an irredeemable currency. Abuses Of
various kinds are practiced, or tolerated,
during a suspension of specie payments,
that would disappear of themselves in a
healthier financial atmosphere; and as
observation and experience bring to light
defects, they may be corrected by judi
cious legislation. ANY radical changes
now would affect so many and such great
interests, that it would be safer and wiser
to build upon and improve the present
system, 30 as to bring it fully up TO the
requirements of the age and b country,
than to undertake to build up s new one.
a safe, convertible and elastic currency
in any volume that may be required by
the business of the country.
No human intelligence can nix the
amount of currency that is really need
ed, for it is continually varying, and is
never fixed. If Congress limits the
amount, there sill always be those who
will be dissatisfied, and who will seek
legislation either for the purposes Of con-
traction or expansion. And so long as
the volume of currency depends upon
legislative enactment, uncertainty and
instability will pervsde all financial OPP
e~rations.
II. however, notes for circulation are
issued by a banking association compos-
ed of business men and capitalists, who
are obliged to furnish security for the
prompt and easy conversion Of their
issues into coin on demand, no other
limit to the mount of such notes need
be fixed than that imposed by self inter-
! est, If there is . legitimate demand for
currency, the notes will remain in circu-
| lation long enough 70 make their issue
| profitable. II there is not such demand,
the.notes will be hurried home for con-
version into coin, In this way the bust
ness demand for currency will get its
supply, and the surplus, if any, will al
ways be retired.
A self-adjusting system Of currency is
the only one that is adapted to the ext
gencies OF trade, and to the wants of the
| country; and il is a vital question at this
tima, whether this result can be reached
before the HetuTn Of specie payments.
II possible at all, It is only possible
through the agency OF national banks,
The machinery Of the government is not
adapted { such ends. And further, il
possible, it is so only upon the adoption
Of q policy which will tend gradually
but surely 10 3 resumption Of specie
payments. It must be the gradual de.
velopment Of q process which shall alb
sorb legal tenders, and put in theil
place a paper currency which shall at al
times and under all circumstances be ex-
c~hangeable for coin, either Of paper or O
gold-a paper currency which shall grad
ually increase, while the legal tenders
for Its redemption shall gradually Do
crease, in such 4 ratio Is Q healthy
demand for banking facilities may ue.
termine.
Where banking facilities were already
abundant, there would be no inducemeni
for the establishment. of banking insti.
tutions for the issue OF currency upo1
conditions that would inevitably dimin.
ish the volume of lawful money appli.
cable TO ita redemption and 20 gradually