The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-05-04
Ghe 9ailg Areus,
independent IN EoerythSaag.
Concluded from second page. J
Mr.. Sumner regards

Mr.. Sumner regards
FREE BANKING
as simply asstep towards bankruptcy and
reputation In this he goes too far. Any
connection between the State and banks
has this undeniable danger. that it gives
the opportunity for the monied power to
unduly influence legislation, since many
shareholders, direct DTS, and favorites OF the
banks will have part in governing the
state Moreover, such connection is
standing temptation to Congress to be tink-
ering at the finances, which is precisely |
the last thing it ought to do. On the 9TH |
er hand, it is great advantage to have a
! bank currency good all over the country,
and one that cannot depreciate below the
value of the countrys currency, since am
pie security for its redemption in that cur
reney is on deposit at W ashington. 1t the
greenbacks were wiped out, so that the Ma
tional Bank notes were redeemable IN spe-
| Gle, and if they we're no longer receivable
for taxes, and if they were issued in no
lower denominations than $40, IN order
that gold or silver of still lower denomina-
tons might circulate freely, with these
three safeguards, free banking might do
enough to counterbalance its evils
1
Restriction 1.-THE Restriction was simply a
r command to the Bank OF England not to
REDEEM its notes in speclel and Austrian
D Paper Money are valuable tor the PROOF
they give of the great difficulty of getting
" rid of irredeemable shinplasters when they
have once been issued. Austria has prom
u ised, again and again, to issue no more,
+ and yet has done so. She has repudiated
L Ill I, RI no
has tried everything save honesty. All IL
/, vain. Her expendients. have but plunged
her deeper in the mire, She IS bank
rupt. The man who learns the lacts prov
8 ed by
a, THE BULLION REPORT,
O. which closes the volume, can congratulate
G. himself on having mastered about all tn
great principles of finance. The repor
was made to the British Parliament i
lsIO. 1t is given in full, preceded by tn
following summary:
l. The value of an inconvertible currency d
bends on its amount relatively to the needs OF Il
country for circulating medium only a. very sd
ordinate degree the security on which II Is past
or the credit of the issuer)
. If gold is at premium in paper, the paper
redundant and deprecated inc premium ihe"
3. The limit of possible fluctuations in the e
changes is the expense of transmitting bullion Iro
| the one country TO the othcI.
ga T. If there is drain of the precious metals, it
due. aside from expectations to purchase 1000 OF ?
ing armies, etc to the presence OF an aierioi 0"ie
our OF some soTt III tne Country ~ ~ =
Tpr s If the inferior currency be removed, the
changes will be turned the overflow will stop, al
nst if any vacuum is created, gold will flow in to SUPP
it, Gold will not flow in while einferior curren
fills the Channals of circulation.
Err G. In the presence of panic, the duty OF
Bank is to discount freely for all solvent parties
ELL, The still more fundamental laws liNo''oN
these, . =,
l. The amount of gold in the world will suffice
D rform the excha ges of the world. If these
more or less, it will only affect the average level
u prices the world over.
- 3 Every nation will have that portion OF
,ost stock of gold in tie world which l. pr poroneo
he its trade. Each nation will have just as much
q tn needs.
full. = beHer ana worst S'5ls 4! 1T
in late toseuher' Inc "oFse VII Univ 0'' ''N 49,