New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-26
PRQNIsES 10 PAY.

|
al Board of, Trade, row in session in Chi
cago, presented report to that body on
Tuesday, which included some considers
tons on the subject of national finances.
After general recognition Of diversity
of opinion as to the expediency of an
early return to specie payments, the COM
nittee expresses it's own opinion to be that
the necessity that now compels people to
! accept for their property promises to pay
in the indefinite future, is stigma on
the national character, and that the au-
thorization Of the national banks to issue
their notes payable in the government
notes is simply such an enlargement of
| the credit system as to reduce all our
| transactions on basis Of indefinite spay-
merts. But they further take notice Of
practice, which in effect is an evasion of
the provision Of the national currency
act. which restricts and limits the issue Of
bank notes:
The recent resort Of the banks in some of
our large cities to the payment of their
lions, without any pretense of legal author
ity. may be cited simply as an outgrowth
OF a system the fundamental idea of which
is in entire harmony with those most ex-
traordinary proceedings. 1t may be that
lhe authors Of the scheme referred to, find
! ing themselves drifting on turbulent sea
OF speculative credit, and, perhaps, finding |
they were approaching the very verge Of
financial ruin, were IN a measure justified |
IN adopting an alternative sav0ring some |
what OF the heroic, IS a temporary expe- |
diency OF shift; but it must be conceded |
that. as a precedent, ii is only to be cOnsid. |
cred as an unsoUnd and dangerous method |
OF conducting the finances of great people. |
]: needs no definition from US TO inform |
the reader that the committee are refer.
ring to certified checks in the above ex-
tract. It is obvious, too, that the issue Of !
certificates according to the custom, instead
Of paying the cash OF demand is simply an
increase Of the bank circulation. These
obligations of the banks differ from those
authorized by law in this, that not having
the endorsement Of the United States
government. they are scld at discount
Of seven per cent ior notes that are in
dorsed.
The anti-infation!sts would doubtless
raise the cry Of alarm at once if law
were proposed authorizing an issue OF an
additional hundred million or so Of nation.
al currency or even greenbacks. No, that
would be expansion, initiation of the worst
sort, and tend to encourage speculation.
Perhaps an issue Of certified checks to an
equal amount, for the purposes of bust
hess, to take up notes, settle for purchases ,
Of cotton and other produce, merchandise
and exchange. does not encourage specula.
ion. though we are unable to see wherein |
,hese promises TO pay differ in their effects !
~ the volume of currency in general use
rom those authorized by law. Though |
not written or printed in the similitude of
| bank note, they are regarded as an obi
cation of the certifying bank.
Neither is there any analogy between
ne certified checks requested by custom
rs in ordinary business transactions, and 7
which are preferred to cash as being more d
convenient, and those that are forced
lpon depositors in consequence of the
inability of the bank to pay money. The C
ne is at all times redeemable on pre-
entation, the other is taken as an evil n
ence that the bank can not or will not
ay. Practically, we think it would be G
etter for all the banks of the city to issue T.
heir printed shinplasters, duly signed by b
heir presidents and cashiers, and pay 81
hecks of their depositors with them than tt
force them iIto the present unsatis- T
sctory arrangement. It is true this G.
'ould be a violation Of both the national T
nd the State law. but not whit more so al
nan this business Of certifying checks =,
I'D thus indirectly increasing the;s obi. c.
Ie