, 1874-03-02


fnr M call &c., no iut]i,con1ont far tho holder
Of National 1,nuk noto in convcrt II intn a
Government logal-tondor. for tic bnn],.noto does
Just tho same business, aul is illst ay gafo, ne
nued 1t does not in]uro itv yaluo In tho loagt,
know yory VOL thoro VIVA 4 nroni,,n or,
Government legal tontlora M tn National I}nnit
notes during tlo panio. What wns the ca,lao Of
sonatlo foar of tho country banks TINT there
would DO D. run OH them for tho conversion Of
National bunk NotoH iuto grconbncla, But looking
at 1t calmly, untllBturGud by tho wild iutu-
intlucomont in iho world to run to u National
Dank In order to convert tho Ngtional Bank motto
Into: groouback. snoh thiugg may. Indeed.
tato place in pa,,ics, but rn,,tes noyor chi, fur.
nis general rulo to control tho ordinary run Of
buBinosa.
While In England, during tho a,,s pension Of
Bpocic payments. lilo conycrsiot, Of q country
bank noto into Bank OF England motto 1noant
tho conversion OF inferior currency Into supo-
ror, a safor and III 30 far n moro valuable one;
the conversion llorc of n National Dunk noto into
gfoonback means virtually tue conversion OF
Quo piece OF currency INTO another Which IL
JUST Ae GOOD, AND NO nErTEa: 80,
IN Engiana tho felattoh o{ fedoemapillty be-
notos acted. therefore, aomo"hat Hike tho
folatloh or ro9oemnplllty pos"oen q
bank noto ana =, specie Ill specie
paying timos: N,t tn lhs country the relation
pt roaecmab'llly M doGs not act IN tlo 6anlo way,
essential particulars virtually tho same The
only thing int makes them aslfGront is t,.e pro,
vision o. tue Natonal-i'ak aot that tio National
bank IL to lock up III Its vaults reserve III
greonpacks amounting to 10 per cent, II
country bank. and 10 per cont, It city bank, OF
itB bank circulation. :, ...
ffeo panKlnx, anInorlzlie the iss1o ,t OF any
amount O. Na1ional Hank notes, only limited ny
tho supply of United STATES bonds, wonlu vlrt''-
wltnoat my bystom OF pfaetleal reaeenlnelllty,
Tor the pank-llotes would 20 only hom1nally ro-
dcemaDlo IN toVornmont Legal tenoers; whiso
tne I"o kinus ~ Oh ouIlonSy, polne oauatiy sa.o,
performing the same offico and ft1rniHi,ing for
esas roaso a3 No 1nancGmone 70 prefer oan 70 the
othor, aro noth e4aaay arfoueelnaolo IN 1aet anu
form yfrsuany ono anu Lilo came system OF paper
"smoy, srsynoa VIM, n,,+ .,,a n,,.,,.,4 :, ,,,a,,
ouPpose hom snas .no onne1liien1 Vi such =
1TeG,pan9ns y, s. aW lests III larFe inesease o.
NJ ~. VIA. LII ~ %
lie oonator from !nu9na says y Nl1l oniy MAKO
'h'n6s io'ols' ano not u'aturp S'lues d. a'i'
What arc tho causes which produce tho disturb
ance Of vat''os through an irrodoomablo curro1l-
cy? There aro two. First, lack Of popular cofl-
hdonco III tho aBsuor OF that currency; and. sec
SSa ha tue quantity Of o
of the country. The first of thcao causes, tho
lack Of confidence In tho issuer, operated during
The war while tile stability OF our Government
fluctuations Of tho currency wont far
beyond tho fluctuations that would
hnyo boon caused by tho rotation of
tho quansity Of tho currency 10 the
hctunl requirements or tho business OF tho
country. That cause, lacl; OF confidence i'll tho
1sauer, haB not operated since tho Government
showed that it could maintain itself, and also
demonstrated its ability to work In tho direction
OF redemption Of it's liabilities. But, sir
md wish the 6ouato to mark this.--that cause
u nd
quantity OF tho currency laH Increased to such
All extent as to rodor tho ability or Willingness
OF tho Government, Or of the banks ultimately,
to rcdoem thor promlsoa LII public opinion doubt
The second causc-thnt is to say; ti,e'rclation
the quantity OF currency boars to tho actual
requirements oi tho business OF the
co,lntrr-win operate as soon as tho quan-
tlty Oh Gutroncy IN circulation 1s III
excess Of tho actual requirements OF bpsincsB
and that ciicct will grow more extensive aa sho
volume of cnrroncy il Increased. Aud hero, 1t
seoms to mo, It mntters very little Thether the
lnlatlon OF tile currency DO that OF tho Legal
tenue! holeh or tito Nutlonal-Bnlk notes. only
viii TINS al1lcroneo TINT, Oh ndnltt, IN Imitation
ol tue Nhtlos!al-bahk notes Will 10 ~ anu 10 per
cent, fesnoctlscly, loss effective, owing to the
aasouns OF grconpncke TO pc Jockey np as bank
npem v;i1 s r, , i,n ,,oora ,,r;nau :" NY
oni.'. VII iun @ up tne sonGehl pa!c9s o. co1!l-
!uou.os' ~ Su.u aa1s o.nera' LIFT viii stlhulaso
srecna.1;on, aha sPse9lat1ot VII nave tho same
uev. sn". ,a ~ n ~ ~ utaw .no eur
nnss a nonc"ntrato # 81 to rna5 cotrcs @
ooi 40 o"n eohsto'' illus l'iolurIns lne WY lor
... NEW ooILArsEs ASD DISASTROUS CRISES.
Ihoso brcakdo"ls wll! bo the mora disastrous
tho greater tic imitation OF tue currency has
Now, sir, do not wish to bo understood as
bolhs absolutely oppo5eu to 1roo banking under
any circumstances. should bo inclined to yoto
Tor IT. II i DO coupled with an eeotual syBtom Of