Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-05-04
THE CURRENCY COMPROMISE.

The following article from the Chicago
Tribune takes a view of the currency
comprise" talked of in Congress. which is
not very soothing to the infationists Of
the West.
Perhaps the Tribune would prefer to
have the breach over the currency ques-
ton among the republicans Of the West
kept open, US that seems to be the intent
of its article; nevertheless New England
readers, though having no sympathy with
its efforts to keep up fight, will yet find
the article worthy their notice, for some of
the facts which it contains.
The news from Washington is to the effect
that, to "save the Republican party" the man
ayers in Congress are connecting scheme by
which al restrictions on the amount of Ma
tisnal Bank circulation are to be abolished,
thereby authorizing any person anywhere to
organize q bank and to issue notes. This
privilege of free banking is to be offset by the
withdrawal of q percentage Of the greenbacks
in proportion to the amount of increase in the
bank currency. Thus if fifty millions more of
bank notes be issued, 20 or so per cent. OF
that sum in greenbacks shall be withdrawn
This compromise will hardly save the party
In the FIRST place, the prospect of any serious
increase in the amount of National Bank cir
culation 10 not q brilliant one, and in the next
place, the people who are clamoring for intla
tien do not want an increase of National Bank
notes, but they do want an increase of legal
tenders.
1t appears that one of Mr.. Logan's princi-
pal grievances at Washington is concerning
IN inc itv nf Pap b,cb
he 10 concerned to get more currency But
the inhationists of Illinois have no interest in
Mr.. Logan's National Bank nor in any other
National Bank on the contrary, they demand
that these banks shall be abolished, and their
bonds taken up by an issue of greenbacks,-
these greenbacks to be legal-tenders, and the
more deprecated they may become the better.
Those of Mr.. L0gan's constituents who insist
upon more currency, and cheaper money, not
only expect that it will be deprecated, but
they desire to have it so; the more the better.
If they can pay their debts at GO cents on the
dollar, very well, but if they can do it at so
cents on the dollar, so much the better. Bank
notes are not a legal-tsnder; they will not pay
debts against the will of the creditor, and
their issue in whatever amount will not be any
advantage to those who want cheap money to
pay off their obligations. The programme OF
imitation 10 not confined to q mere increase of
currency. If the whole volume of green
backs were taken up, there would be an in
crease Of bank-notes to an amount actually
needed 10 meet the current business of the
country. But this is not all that is demand
ed. The great body of these infationsts
look to something beyond. They do not en-
terrain thought of currency that is not
legal tender, and they look to this legal-ten-
der being issued in such quantity that its
~gtl oil
Greenbacks, with gold at ll2, are worth over
50 cents on the dollar; to retire any portion
of them would be to advance their value
nearer to par. These people resent any ad-
vance In the value of greenbacks as an injury,
and openly declare that it is compelling them
to pay debts at higher rate than they con-
tracted TO do. They want the value OF the
greenback to recede, so that dollar, though
worth in fact but so cents, will pay Off dol
lar of indebtedness. We have before US at
this moment an organ of these infatonsts
which demands that the Banking law be re-
pealsd; that the banks be closed up, and that
the interest now paid on the bonds to secure
the bank circulation be saved by the issue of
= grsenback for each outstanding bank-note. |
and the purchase Herewith of the bonds /
This Of course is reputation, but neverthe-
less that 10 the end sought, and that is the |
inevitable result that must follow any increase
in the issue Of legal-tender notes. To talk to |
these people of an increase of National Bank
notes accompanied by corresponding de-
crease Of legal-tender Treasury notes is all |
nonsense. As the bank notes are redeemable
IN legal.tenders, any increase 10 the value Of
the latter would also attach to the bank note.
The result Of such compromise as is pro-
posed at Washington would be to enhance the |
value Of both greenbacks and bank notes to
the extent that the legal-tenders were retired
this would put matters in motion towards
specie values and specie payments which is |
the very thing which the simon-pure imitation
lists do not want. and against which they most
Earnestly protest.
Without discussing at this time the merits
II the proposed compromise, we call atten-
ioa to the fact that it is a swindle upon the
Cheap Money" party, and that the imitation
sts In Congress who vote for it are selling