The avant courier. (Bozeman, Mont.) 1871-1872, 1871-10-26
The Future Of Greenbacks.
lFrom ths Sew YORK Independent

~ FgH From the New York independent ises
Il The legal tender notes of the United States
If left to circulate among the people without
il any renewal, would at length wear ont and
/ Ifinaliy.iisappear altogether by the mere pro-
4 cess ofsuse and decay. Nc one, wi. presume.
4 Esupposes that this is to be their future. II
would be equivalent to their non-pay ynentr-
/ Imposing the entire loss upon the people and
justly exposing the Government to the charge
Of Reputation. .
These notes, if not left to die a natural
death, must either remain as d part of the
paper circnlatione the country, or they must
BY some act Of the Government be retired
and Withdrawn from public use. We believe
that they ought to be retired atthe earliest
practicable period. They have the character
Of debt obligations, that ought IN due season
be cancelled. They were never intended to be
n permanent currency, whether redeemahle
or irredecmable. We haye now two kinds of
currency bank issues and Government is
sues and, If it were proposed to make the
latter fixture, then we should go for with
drawing all currency powers from the banks,
and making the whole paper circulation
emanate directly from the Government.
There may be here and there a monetary |
theorist who would favor such d measure
yet the American idea of paper circulation is |
that OF bank notes, guaranteed by adequate /
securities, and made redeen,able on demand |
in coin. Government issues, exception tenn
porary purposes, whether redeemabie or ire
deemable, would Involve asvast revolution in
our currency. The idea is not likely to OBJ
tain any general favor among the people !
and hence we regard the ultimate future of 1
greenbaeks to be one of retirement from pub I
lie use, with the substitution of bank cur
rency therefor. This is the point to which
we must come at last-resuming our former
system OF bank notes, redeelnahle In coin
issued, as we hope, under the authority OF
the General Government, and never again
under that of the States. The people have 4
lived to learn that q national currency under
! national system Of banking is vastly supe-
'ior to that Of State banks. The necessities
# the war have taught them this lesson 50
thoroughly that it is not likely to be foIgot- ,
en-
Assuming then, that greenbacks areto be
etired, and their place taken by the notes of
he national banks, we are brought to tha !
blowing question: What is the process Of .
his retirement? In some way they must bel
aken out of the hands of the public, and not !
s-issued, but destroyed. This is possible !
My in one or the other or all three methods:
he Government, as it receives these notes :
ON time to time for Government dues. :
ust destroy them; or it must redeem them !,
coin, and then destroy them; or it must !.
md them in interest bearing bonds, and de !
roy them or il must combine these three
ethods together. The first method, stand q
g by itself, involves the contraction Of the :,
aper currency, greater or less according to {.
le rate of the destruction and this would :.
on bring disturbance to the business of the g
'untry. The second method is practicable {;
lily when the Government is in condition !
resume specie payment; and OF this tIleTej Z
no prospect for at least some time to come. !,
he third method is the one originally pro-
ded for when the Legal Teuder Act was
ssed. The notes Of the United States were
first made flndableF in fve-tWentys six per =
mt. bonds and this property ought never =
have been withdrawn. Funding, in con- q. a.,
ction with a proportionate expansion OF :
g national bank systen1,is Is at the present -
9 only practicable method of retiren eat -
thout reduction of the currency =
Free banking 1n the basissof bonds pre- =
rable Of the Government, BY the payment - !
an equal amountof greenbaeks, connected - -
tn the destruction of the latter in proper ~ ~
n to the inereaseof bank issues, is, in our :.
lgment, the true method, at least, for the :.
ssent, of retiring the one currency and -
the other. The only objection
tits that ii increases eainterest bearing y
ot Of the United States; yet we do not re- - :.
ID this objection as OF any practical - -
light when compared with the advantages
be secured. Let it be remembered that it - -
.reases the non-interest bearing debt in the - -,
ne amount. It begins the process Of re -
ng currency which was never designed
BIO permanent; and that, too, without any
lnge in the aggregate amount Of paper cir -,
alton.