New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-06-04
TIE CURRENCY QUESTION.
TIE NEW CURRENCY BILI-GEN. GARFIELD
VIEWS ON THE GREENBACK SCHEME.

TIE NEW CURRENCY BlLl-bfN' h-Nhiii@''i"
VIEWS ON THE GREENBACK SCHEME
WASHINGTON, June 1.-The proneness OF
some editors to see things they wish to see them ana
not as they are is well illustrated by the comments ot
two New York journals on the new Currency DILL his
bill, which carefully prepared by committee Oh 'eh
some patonists and some contractOnsts with the spe
ca design Of way affecting the total volume OF the
currency criticised by The Ecenng Post as measure
Of great and dangerous expansion and at the same ue
denounced by The Times affecting contraction 10 inc
enormo us extent 100000 And yet the bill is good
written in plain English, that it would seem that
nothing desire misrepresent its provisions cou
lead two of average common sense to come 10 di-
ferent conclusions 10 its effect upon the circulating
medium of the country The fact is that the BILL be-
comes law will not take dollar from circulation nor
add dollar to the currency except IN so iar as he
checks drafts and other commercial paper created by
the business banks may be considered IA cur
rency.
The bill which mp In the House on Tuesday next
is likely TO be vigorously attacked. Strange to say IL
finds enemies among both the opponents and the friends
OF the National Bank system The greenback currency
men, including nearly all the Democrats and some west
eyn Republicans, who wish 10 destroy the whole Dak
system and preside currency exclusively OF rreuee
able greenbacks are OF course, opposed TO the measure
and the representatives of the present banking interest
anxious to retain undisturbed the valuable monopoly
they now enjoy naturally resist the creation OF new
banks the establishment Of free banking on gold OASIS
and all other intended to lessen telr Prohts ny
reducing the interest their bonds Beside these TWO
elements Of opposition. third and unexpected one ap
pears TO have it, head in NewYork, where certain per
sons have gotten up scheme for the revival OF the Ola
state banking system, which they cautiously dvuig
ing by means Of confidential circulars The great hght
against the bill will be made by the enemies of the Ma
tonal Banks and it likely that the friends OF the pres
ent banks WILL in the end, find it for their interest TO
come to it, support lest the fierce and growing oppos
ton which the monopoly feature Of the present system
provokcs should become strong enough in few years 10
destroy the National Banking system.
Garfield, Chairman of the Committee on Banking
and Currency in conversation gave his reasons
for advocating the National Banking system, ana MS
opposition the plan Of replacing bank currency with
legalendcr notes in substance "a follows; Bahkhg III
situtIons and paper money are acknowledged neceSsi
ties Of civilization In this country the issuing OF paper
currency must either be under the control Of the General
Government or left TO the regulation Of the States II
undertaken by the Government, it must be by direct
issues OF currency the Treasury in the form OF legal
tender notes. through bank or banks authorized by
Congress The following the chief objections to the
proposition that the General Government furnish the
paper money for the country III the form OF Treasury
notes:
First: such system would afford to whatever political
PARTY might he in power, dangerous temptation
to order an increased issue of notes in lieu OF levying
increased whenever there should be deficit in the
Treasury. We cannot hope that Congress will always
the virtue resist this temptation In case we're
done there would he pressure for reviving the State
Banks which, backed mp it would he, by all the bank
ing interests of the country, would ultimately prevail in
Congress for the only thing needed to revive them
is to repeal tire per cent State bank crcula
ton. So that not permitted to choose between
National Bank aud the grecsback currency bat between
the National system aud the old state system from
| which have happily escaped
Second: 4 currency issued directly from the Treas
4 ury Vould he L..
adapting itself a. th wants OF business There would he
fixed quantity ia Crcullton which during one part oil
the year might hc insufficient and during another re-
dundant and gi,sJure Is wise enough to determine
what amount ought 10 authorized Every increase OF
dmin on OF the volume would affect values throughout
the country and wOuc he first felt IN the money cenerS
producing great irrcrulary and tlutuatOn OF prices
Being centalizing system, IL would tgOrd no taclties
for local credit, such;s can he afforded by the National
Bans. Now issues Of currency made from the Treasury
would only swell To- already dislrTorttonaely large
Accommodations i'm thf great centers of the East
instead meeting ihe wants OF the EeOpe or the west
| and south
| Third. 4 greenlack currency, 80 take the plaCz OF
NasioGl Bank currency. must De issed in excess - fOu
hundred millions Fl dollars which amount il the limit
authorized In all the Loan l2ws creating our present
bonded aeb and would therefore Ia direct and ~ pa
BILE violation OF the contract uadt by the Government
| with every holder OF its bonds
IOust An in 'rcasc OF lcgaEt'nder currency is in
direct violation Of the Constitution of the Unitc6 state
iutr preted in the late decsop1 the supreme Court
| which declared that no paper money issued 10y tht
| Government ear he made lcgI tender in pIydent OF
debts contracted before its issue Any new issue would
therefore consu- ute new kinds currency OF doubtfu
| value because lnapplCaDe 10 the payment OF pflOl
| liabilities.
The fostponenen Of Gen Gar .efd bill until Tuesday
understood to De at the desire OF bOththe Com
mttse Banking and Currenpy ana the Committee O
Ways and Means, and will Ice likely to result in concert
action the part of the twoCOmmttecs on Lhe ''md
] uls features ni the Dill