Carson daily appeal. [volume] (Carson City, Nev.) 1873-1877, 1874-05-28

the VIDE world, might nave Deen only
the emblem Of an abortive struggle for
freedom, and the domination Of the peo-
Pile of the little British isle. would have
been perfected overall North America.
Unlike the Legal Tenders of '16. the
present retain their value and who dares
doub. they will not eventually be paid
dollar for dollar in gold coin? To doubt
this is to doubt the faith and solidity of
| our coveynment.--is--='' -71fs5 sss''2- 80
Aside from the necessity of issuing a
currency for the use of the Government
in its great battle of freedom and the inn
poriant results which they have produ-
ced. there is yet another poin. IN their
issue which must commend the acts of
the party aud of the statesmen who ma
tured the system. In 1871 the first State
Banks were inauSurated. Charters upon
charters had been granted, as the coun-
trv increased and States were added to
the Union. until in 1860 their aggregated
capitals exceeded four hundred millions
and their loans to more than seven hun
DIR. d millions, while their actual specie
capital was less than one hundred mil
like our wild cat mines nearly worthless
and the circulation of the best institE-
tons was always subject to discount
ont of their own immediate vicinity.
This fact, together with the numerous
failures which occurred. brought i'm
mense losses upon the community
although the bill holder had the promise
of gold coin on command, he frequently
found himself in possession OF only
vaiue!ess slip Of paper with no prospect
of its ever being redeemed. The policy
OF the Government was brought to bear
upon these unstable corporations until
they have been cyterslinattd and We have
i'll their stead moBied circulation based
on the faith OF the nation which is worth
iUs: as much in epoition OF the [ mon
as the other. not excepting California
and Nevada. but which from the present
inpossihiiity of procuring specie FOX its
Immediate redemption Is reduced to a
less value than the coin il repre- sents. OF
the present circulation lover six hundred
millions nearly one-half consists Of Ma
tional Bark currency. the payment Of
which is secured by Government bonds.
That there has been redundancy of is
sue is disputed question: but that far
greater degree of initiation would
have obtained under the old State Bank
system is unquestionabie. II we are to
have paper currency. either in whole
or in part. let the Government be the
Snarantor for in that we have faith.
while individual promises always have
been and always Will be exceedingly
doubtful. Should we compare the dis
count on currency i'll its relative coin
value with that which most certainly
would have followed the old banking |
system We should find a much greater |
balance to the loss account of the lat /
ter than Of the former. In making this |
statement we wish to be understood as
asserting that outside OF the gold and |
silver producing States. system of pa |
per currency will always be in vogue, |
whether endorsed by the Government or |
otherwise. But while we admit its con- |
tinuanc+ in some shape 1t shonld be the |
aim of Government to reduce such clr |
culation to its real legitimate uses.
For more than forty years the question |
of hard cure Icy - Il IJoLi,d circulation
has been acita,ed IN several Of tie
States bills Of 4 less denomination than
FIVE dollars were, by Legislative acts, pro-
hihited. The attempt TO carry out even
this >h .ht innovation resulted in so much
If Inconvenience 10 the business com
the law was disrs gartied or re-
penled the first opportunity. For long
lime one of the. cardinal principles Of the
De nlocratic party was hard currency
ior the people" bnt the apparent i'm
possibility Of conducting the business of
of |
specie which would be obtained prevent
d the party from ever attempting to put
heir favorite scheme to the test-he nee
state Banks, whether under Wing or
rule, were always tolerated
until thu Government exercised its
tights of supplanting national for cor
Dorate currency.
TIE paper currency is not needed in the
PdciGc States.
The question has been asked why the
Eastern States cannot dispense with
PAPER currency as we'll as California,
Oregon and Nevada. 1t will be borne
n mind that for long time California
Produced nothing for export but gold
md that being her only production she,
or time, manufactured her own coin,
n rather permitted its manufacture by
private parties, these private coins. to-
either with geld dust, formed the circu-
atins medium. Thus the business
.hannels were filled with home produc-
ION, and why should they not be. which
,roduct has continued Ill the hands of
he people With necessary additions.
The Mint having remodelled private
coinage into that Of the Government, it
ertaintv would be a strange anomaly