Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1869-12-10

currency; for, after they are redeemed,
they are In the treasury and cannot again |
be paid out, except upon appropriations
made Ivy law, In accordance with the CON
stitutional provision, and consequently
cannot again be put In circulation, except
rs disbursements may be necesary 10 pay
EXPENSES and debts Of the government.
A. that government circulation is convert
ible. and therefore is not elastic, and cannot |
be made 80 without first making radical
change In the organization Of The United
States Treasury, by which II should be |
converted into huge banking institution
calculated TO receive deposits, make loans, |
and otherwise perform the functions of a
National Bank. nf..r.fs-t.t 1880.
The notes issued by National Banks are
nominally redcemable and, If the legal
tender notes were out Of the way would
he actually so, and, being issued by insti
tutlons In sympathy with trade, would
contract and expand in obedience 10 the
law Of supply and demand, 50 that they
would also possess the element Of elias
ticity.
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 II would possess the power of
IL government issues could be made TO pos.
scss the same power of adaptation, the yer.
dict would be In their favor. A candid
investigation, however, cannot fail to de.
yelop the fact that there is no branch OF
the fiscal service adequate 10 the direct
issue and care of such a currency as the
country requires The Treasury system Is
80 arbitrary in its collections and disburse.
ments, 80 little in harmony with the busi-
ness interests of the community, that IL
frequently absorbs large amounts of cur
rency Mt 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 n process of imitation,
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
IL may realize the profit upon its circula.
tiOn is n common one, but will not hear
scrutiny. There is no profit to the govern.
ment on the circulation of an inferior cur
rency Only Il sound currency will pro
mote the material prosperity Of the people;
! and the government can realize no profit
from anything detrimental tn their inter
ests. AS currency, therefore, govern.
ment issues are not profitable As ~ loan
without interest they are equally unproft.
able, because they are injurious to the ma.
tional credit, and add enormously TO the
expenses of the government.
IT, however, IL Is impossible for the GOV.
ornment to comply with the conditions
necessary in order to furnish u sound cur.
rency, 1t can at least provide for the with
drawal OF its own notes, and prescribe the
| conditions upon which, and tho agencies
through which, better currency may be
provided As before stated, there should
be but 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 BANNING, M
A self'adiusting currency Is the only one
that Is adapted to the exigcncies of trade,
and TO the wants OF the country and tits
vital question at this time, whether this
result can be reached before the return of
specie payments. If possible ut 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, II possible, il is only upon
the adoption of n policy which win tend
| gradually but surely TO a RESUMPTION of
specie payments II must be the gradual
development of process which shall alb,
sorb legal tenders, and put in their place
paper currency which shall at all times
and under all circumstances be exchange
able Tor coin, either off paper, 0egal. .tenders)
or oi goid-a paper currency which shall
gradually increase, while the legal tenders
Tor It's redemption shall gradually decrease,
In such ratio as n healthy demand for
banking facilities may determine.
| Where banking facilities were already
abundant, there would be no inducement
for the establishment of banking institu-
tlons'for the issue of currency upon con-
ditions that would inevitably diminish the
volume OF lawful money applicable to its
redemption, and 80 gradually, but surely,
| enhance the cost of such redemption /;
| while in other sections destitute, in whole
or In part, of banking facilities for the
legitimate demands of business, the neces-
sity for banks and currency would Justify
the increase of bank circulation, notwith.
standing the fact that by such increase
The burden of its redemption would also
| be enhanced,
The entire South ani many portions of
the west are very much in need of the
facilities and advantages to be derived
from properly organized banking institu-
tons, and their necessities would Justify
them In deliberately adopting measures TO
supply thelr wants, the direct tendency of
which would be to hasten the return of
| specie payments in the manner indicated,
to wit by the increase 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 to par with
goiu. Thus specie payment may be
reached through the agency of the Ma
uonal Banks, and by the operation OF
natural causes. Tho process will not be
rapid or spasmodic, because Il will in all
Its stages, and in ali its details, be governed
by sound principles and conform to estab
lish laws. At the same time, the benefits
and advantages of the National Banking
system would gradually become more
equally dittused, until all sections would
at length get their just and equal share
apportioned beyond cavil or objection be
cause regulated by the actual requirement.
of business
While free banking may thus be estab
Ushed with safety, anterior to specie pay
ments, conditioned only upon the with
drawal and cancellation of legal tender
dollar for every COLLAR OF bank currenc,
issued, free banking upon specie basil
may also be permitted, with equal sany
aud without delay. With details properi,
adjusted, banks may be established Will
authority 10 issue and put in circulation
gold notes-limitlng the amount only by tn,
ability Of the banks to comply with tn,
necessary conditions, and To redeem thei
} issues. some provision of this kind 1
, probably necessary in order to supply tn
7 Pacific and gold'produoing States with
} paper currency. A circulating medium
cheaper and more convenient than coin
J has long been necessity in those States
e and would undoubtedly do much 10 pro
7 mote activity, enterprise, and develop
r ment Experience has demonstrated /,
: them that currency composed exclusive
; ly OF specie Is not exempt from the nuctu
: alions To which money and trade every
b | where are subject which NAV laaa 10 ~