North Iowa times. [volume] (McGregor, Iowa) 1867-current, 1870-07-27
The New Currency Law-How Il Dis.
eliminates against the West.

Ihe New Currency Law-How it Dis.
eliminates against the West.
The currency bill just passed by Con.
gress, providing for the issue of s54. .Ooo..
600 in currency notes, merits more than a
passing notice. The ostensible object OF
the law, is to give the South and West an
increase Of currency, making it equal in
proportion to that now enjoyed by the
North and East; but the real effect of the
law will be to diminish paper circulation
to the extent of the new issue.
The LIST section simply provides for the
issue; the I'd section provides for the can
ceiling the 3 per cent. certificates as fast AZ
circulating notes are issued. (These GER
ti6cates draw 3 per cent. interest, and are
now held by banks as a reserve. They
were, at one time, in general circulation,
but are now-the interest making them
desirable reserves for banks.) This may
and probably will work contraction of
the currency. In the large cities, like
Chicago, St. Louis, New Orleans and
San Francisco, bondholders will secure
bank franchises-establish banks, and not
issue the bills which they may receive from
the Controller Of the Currency, but rely
for their profits upon the interest received
upon the bonds deposited with the U. S.
Treasurer, and the advantages which they
would receive from large deposites. They
will lock up their bills. and simply do a
deposite and exchange business.
The law discriminates against the West,
in this, that under it, banks will receive
but so per cent in circulating notes for
their bonds, while under the old law, the
banks received 90 per cent. and under
the old law, circulating notes were redeem
cd, if it at all, in greenbacks; while under
the new, the notes are to be redeemed in
gold and silver, and as gold is worth from
IL to l5 per cent. premium, it will be
readily seen that no bank can issue n otes
and sustain itself. As fast as the notes
are issued, they will be gathered up, and
presented for redemption. So that instead
Of there being an increase of banking cir
culation, in the west, under this law, there
is to be contraction of the currency to
the amount of the new issue. Until there
is return to specie payment, no bank in
the west can issue notes under the new
law, for the simple season, that the premi-
um on gold, in which they are to be re-
deemed, makes it an object for holders of
the notes to return them to the bank for
redemption. 1t needs no argument to
convince the people that while gold is
worth from IL to Is per cent. premium,
bank notes will not be suffered to take its
place.
This is Of piece with all congressional
legislation for the west. In the first place,
the States having the bulk of capital, have
already their share of the national issue
they have 90 per cent. of notes on their
bonds, and if they redeem, which is sell
dom, they are authorized to do so in GREEN
backs; but under this law, enacted to do
Justice to the west, the issue of notes il
but 80 cents on the dollar Of bonds depos-
tied, while the banks issuing them are re-
quired, on presentation, to redeem their
notes ia gold, when gold is worth from IL
to Is per cent. premium. This is doins
the Wes. justice with vengeance. The
fact is, the law is deception, enacted to
deceive the people of the West into the
belief that by its provisions greater bas;-
ness facilities will be afforded, and the
country relieved from the restraint occa-
stoned by want, and undue distribution,
of circulating medium. 1t will contract
circulation to the extent of the banking
capital, and was no doubt designed to in
fuence western elections, while Mt the same
time works to the advantage of eastern
capital. If it was designed to benefit and
relieve the West, why this discrimination
of 10 per cent. in the issue, and the cem-
pulsory redemption ia gold? Will Mr..
Sawyer tell Oshkosh Times.
OF the S54, ,OOO,O 900, little Iowa, with a
population Of one million and produce
yields enough to feed all the Eastern
States this little Iowa will get about
5000, 600!