The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1870-03-04
INCREASE OF CURRENCY-HOW IS 1T
TO BE ACCOMPLISHED! l

The resolution which was recently
presented in the House of Representa-
tives, instructing the committee on
soon as possible, ga bill for increasing
the currency to the amount of S50,0O0,-
0OO," leads to some reflections relative
to what kind of currency the Govern
ment can most properly and eeonomi-
cally issue.
There being two kinds of currency
now in use, which was issued by the
Government, or at least under its imme-
diate encouragement, it is to be suppos-i
ed that one of these kinds will be desig-
mated by the committee. That green
backs will form, or does furnish, as
safe currency for bill holders, and the
most economical one for the Govern
ment to issue, cannot admit OF reason
able doubt. That the currency furnish
ed by national banks is equally safe for
the holder of their bills, suppose to be
equally true; but that such currency
equally subserves the interests of the
Government, seems 10 be extremely
doubtful. In fact this Is not possible.
1t IS not easy to perceive the advan-
tage to the Government that can be de-
rived from the establishment of national
banks. If there be any advantages be-
yond the one which was at first referred
to, (viz: that the Government bonds
which they would require would create
q home market for them, and that by
this means they would bear higher
price, tits probably no easy task 10 point
out. 1t Is apparent that this must prove
a costly method for creating such home
market for the bonds, inasmueh as
the Government offered the inducement
of furnishing the bills including the en-
craving an the paper, as well as the sig
nature and stamps of the Government
officers, with no expense to the bank
which issued the currency. 1t also fur
nishes safe repository for the national
bonds, when the banks can clip their
coupons, and derive all the advantages
that could be conferred if they were
held ms private property in their own
safe where they would be subject to the
usual exposure, from the depredations
4 of robbers and thieves.
One common disadvantage, or to say
| the least, lack of advantage of national
banks over common private banking
houses, is in the increased confidence
with which depositors have sometimes
regarded them, inssmuch as they trans
act business under an authorized nation
al name. This confidence is found to be
misplaced, when the depositOrs ascer-
tain that they are no more safe deposit
tories than any other banks, the Govern.
ment being merely responsible for the
redemption of the currency, the issue of
which they have authorized. While
many of the national banks are above
reproach in their methods and uniform
ity in transacting business, too many OF
them transact business in the manner
that common brokers do, with the exc
ception of the currency which they IS
sue, or the circulation which they fur
nish, AS consequence of this last
method of transacting their business, In
close proximity to some, even OF the
larger national hanks, n brokers ofiiet
will often be found, ready to straRsact
, business in . way that the said banf
+ shrinks from doing In Its own name.
1t seems to bes question which MAJ
well engage the attention of our nation