Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-30
HOME CUERENCY FOR HOME

The proposition OF the Comptroller
is, upon a capital of 81, SOC, 900 to issue
a, circulation of Sls.500, 900. Now,
how will the security for the redemp-
ton of State note upon this basis
compare with that for the redemption
of national bank note or n greenback?
For the redemption of Sl3,500,000 in
national bank notes. we have securities
deposited and entirely beyond the con-
troll of the bank, equal to Sl5, 100000 in
gold. This makes their redemption
absolutely certain, removing all doubt
from the public mind as TO that mat
ter. As to the greenbacks, they are Is
sued upon the credit Of the Govern
ment itself. and the people can judge
how much better that is than the Gre
dit of Tennessee. A blind man ought
to be able t. see that. the State bank
notes based upon the credit proposed,
can never be passed at par with nation
al bant notes, or greenbacks thus Sc
cured, beyond the borders of the
State.-Chattanooga Commercial.
Suppose, for mere argument sake, we
concede the point on which our Re-
publican contemporary insists, namely,
that the circulation of the proposed
State Bank would incur a discount of
one or two per cent. at a distance from
home. What does it prove, except that
such currency would avoid depreciation
by staying at home. This is precisely
the element lacking in the present
boosted currency, and which bears
hard on West and South, while Jay
Cooke find surplus hundreds of mil
lions in the East to build railroads 20
the north pole or the mountains Of the
moon.
As to the degree of security TO note
holders, our contemporary forgets that
there is no pretence at security for
S430, 100000 of the present currency.
For neither greenbacksnor shinplasters
are there any bonds pledged anywhere.
They represent nothing but floating
debt, kept floating indefinitely without
any intention of payment yet developed.
They depend solely ON the credit of the
United States, to be deprecated one
half or two-thirds in every mans hands
by little war with Spain that may
come up any time on the Virginius or
some new outrage. This device of
making every mans dollar depend on
European faith or want of faith in the
future of this republic, is the veriest
king-craft, to link the fortunes of every
individual, his earnings and his savings,
with the fate of the monarchy. 1t is
the latest refinement of centralism. 1t
is fatal to a republic.
The national bank notes, though
bonds intervene, depend absolutely on
the same basis of national credit and
national exigencies. We remember
when the Democratic administration
OF q Tennessee President was accused
OF precipitating a needless war on
Mexico. We have now a military
President, seeking a third term, and if
a war suits his purposes, we may have
it. Where then viii be the fancied Sc
curity Of the holder of greenbacks or
national bank notes? But our Repub-
can contemporary might see danger
to the national credit nearer home.
Every argument alleged against
prompt payment Of intsreston Tennes-
sees debt, applies with tenfolI force
to the national debt. The people are
as poor to pay the one as the other. A
Republican Of three terms standing in
Congress has already, here in Tennes-
see, declared for the reputation of the
national debt. The temper and atti-
tude Of the entire West in regard to
bondholders and monopolists is omi-
nous. The financial question Is an open
one. A ruthless panic forced it On
the whole country. Congress has con-
fessed its inability 10 settle it. The
value Of the greenback depends on po-
litical vicissitudes as well as foreign
wars. We have had preliminary warn
ings, Jay-Gould Black Fridays and
Jay-Cookc crashes, but n currency
based on nothing is a bubble, and the
final burst is a mere question of time.
Radical fnanciering have goaded the
people If this country nigh to despera-
ton. The year of lS76 will see the
credit Of the nation questioned in the
same way as that of Tennessee is to-
day. Only Democratic principles and
practices can save either. We must
reduce the national burden and mo-
nopoly, thereby relieving the States.
This is the safe middle path to avert
reputation by either State or United
States. There must be concessions
from the empowering centralism Of
to-day. State after State cannot go
into bankruptcy without affecting the
credit Of the United States at home
and abroad. The same people, the
same voters, constitute both. The
people who repudiate their own home
debts will not be long in learning to
repudiate a distant and much more
heavy debt. We must return to a less
abnormal distribution Of burdens and
rights.
HOW MUCH DO WE OWE?
The Nclr Yo"k Shipping Gazette
saws.