The New York herald., 1870-02-16
Cr.enbaok, =, National Banks.

Greenbacks w. National Banks.
The Interpretation Of the recent Supreme
Court legal tender decision given out by the
national bank organs should be taken with
very many grains Of allowance. All the ring
organs have point to make. They would
have us believe that the decision just rendered
and the one about to follow put the green
backs out of existence and leave us no other
currency than their favorite national bank
notes. The facts Of the case are just the
reverse. The Supreme Court decided that all
contracts made prior to the passage of the
Legal Tender act must be paid in coin, and
under existing law all contracts at any time
made must -be paid in coin If so stipulated in
the bond.
Now, II the Supreme Court should Decide
as it is claimed it will, that the Legal Tender
act is unconstitutional, the greenback currency
would yet remain the very best we ever had,
and every way preferable to the irredeemable
currency of the national banks. Congress
would yet have the right to issue greenbacks
to any reasonable extent, but not the right
to make them legal tenders The first
greenbacks issued by the government
were known as the demand notes OF
July, 1861. They were not legal tenders, but
nevertheless commanded premium almost
equal to that Of gold SO long as any were IN
circulation. There is nothing in the constitu-
ton or law or in any decision of the Supreme
Court to prevent Congress from retiring the
irredeemable national bank notes and substl-
tuting the old demand greenbacks of lS6l-the
best currency we have ever had and the best
that can be devised.
We have time and again exposed and brought
to grief the rings schemes for driving the
greenhacks out Of existence and substituting its
irredcomable national bank notes; but as often
as they are defeated so often do new ones
appear, each more cunningly devised than its
predecessor. The last job Of the kind got
through the Senate on the I'd instant, and is
known as the "Thimble-rig bill. 1t provides
that forty-fve million dollars, in notes for cir
culation, may be issued to national bank
ing associations in addition to the three hun
dred million dollars subsidy authorized by
existing law, and that the Secretary Of the
Treasury shall retire an equal amount of the
three per cent temporary loan certificates.
There are four sections authorizing supposi-
titious banks that are TO issue notes redeem-
able in gold, but the practical portion of the
bill is embraced In its first three sections, as
above stated. 1t is nothing more nor less than
the first instalment of the job for retiring the
greenbacks and substituting national bank cur
rcncy. Western men are told that il is imitation
to the extent of forty-iiys million dollars.
Eastern capitalists are told that it contracts
the currency eleven million dollars. Friends
of retrcnchment are reminded that it stops the
interest on forty-fve million dollars Of three
per cents and reduces the expenses OF the
government $l, 100000 per annum. The con
to-specie" payment folks are tickled with the
four sections Of gold note buncombe, and the
people, bewildered by conflicting reports look,
as usual, to the HERALD for correct information.
The only proper plan is to retire the three
per cents-all there are out-and issue green
backs instead On the sum contemplated our
plan would save the people $l, $50, 600 per
annum in gold, wasted by present manage
ment and is So, 970, 900 gold per annum better
than the plan proposed by the bill now before
General Garfcld's committee. IF it becomes
a law $49, 500, 900 gold bonds, bearing annual
interest of 81, 97O, 900 gold, will be required to
secure the newly issued national bank notes,
and S11 ,250 900 greenbacks must be withdrawn
from circulation for the new subsidy re-
serve In Short the bill under consideration
rctires $45,ooo,0oo three per cents and
$l1 ,250,000 plain greenbacks II in all
$06, 25O, ,OO0-and issues instead S45, 900, 900
national bank notes. The currency is con-
tracted $ll, $50, 900, aud the peoples burden
increased $2,970,000 per annum in gold
| $500, 900 currency if the bill becomes a
| law. Let General Garfield look to it. There
is point beyond which torbearance ceases to
be virtue. j..