, 1874-03-07

| 70 tad Editor Of Tie CHICAGO Tribune:
! SIE: The TRIBUNE, as an exponent OF sound
| financial doctrine, has done somo service
! trust, In defense OF stable currency; service
| whoHe importance can scarcely hc ovcroBtimatol
! at this time, If wc may Judge from tho farrago
| Of nonsense which is being lot loose upon tie
| community from tho balls Of Congress, from
conventions Of drangerB, aud from individual
philosophers, who, ignoring the dearly purchased
experience Of former gonorationB erolyo oach .
new financial cure-a1l--as the German did tho
camol-from his inner consciousness.
But, in one respect, 1t seoms to me- that The
TRIBUNE Vorgas very close upon financial hetero-
do1y.
From timo to timo arguments appear in the
money-colu1nn advocating
FREE-DAEKlNa" ~;
I. e., the removal OF the restriction limiting tho
circulation OF the National Banks to 1854 900 000
1t is argued that this il hot measure looking to
inaaton, OF depreciation Of tho currency, so
long ua no moro "greenhacks arc issued. In
fact, the reauits to bo apprehoudcd arc an ill.,
creased demand for greopbacks to bo held as
National-Dank Reserves aud q consequent step
toward resumption OF apecie-payncnts.
II we must hlvo m increase In the volume Of
our currency, 1t would be better on some nc
counts, to haya tho addition mado IN National
Bank notea,-not. however, bccauan an addition
Of National-Bank notes would relieve us from
tho penalties Of Initiation, but because, among
euffer, ut hons md abroad, il Congress- should
deliberately adopt any schome looking toward IN
int1eanite rostponoment OF tho redemption Of
tho greenbacks, III further expansion Of their
volume would necessarily imply.
But tho arguments by which it ia sought to
show tiat - frce-banking would no. result In
initiating or dilusinng the currency appear to mo
to be fallacious for reasons which will on
deayor to set forth.
THERE Is PRACTICALLY NO DIFFERENCE
letween greenbacks and notes Of National Banks.
The latter arc not logal-tendes, but arc rodcem-
abfe iu tho former. Both aro based upon tLe
Same point below par. The fact that they aro
below par 10 to be explained either by Bnprosing
that it is only because tho Government credit ID
under c!oud or because Of this aud tho fact
that the currency is already redundant. think
both facts arc to bo taken into account in ex-
planning the mattor. Now au increase in tho
volume Of an rredeemable currency, aiready
sufficient for the needs OF tho country, II not ro-
dundant, cau be- met IL ouly QUO way correa-
Which men buy aud sell.
any irretlecmable and mean IT., for tho TO-
domptlon OF q Nasioual.Bauk note by green
buck, a. gresnbacka now Btaud, is
4 MERE HuAat,-
q farce which no business man ever thinks of
euactinE. 1t dooB not accomplish any Of the re-
st1lts OF real redemption,-a gola redemption;
j. does not yet rid Of tho superluoua currency.
Tho outstanding greoubaeks, before tho late ad-
dition from tho !" toserve, /" would afford as per
cont redouption-reHerya for $f,424, 600, 600 in
bank-notes; 30 that tho National Bunks could iu-
dulga IN Q pretty extensive expansion before
being at all pushed on tho redemption question.
tlust that public sentiment would not lat tlem
approach anywhere near this limit but tlIore cat
bo no doubt that self-intereat would loau tho
banks to iasue notes far III exeosa Of tile amount
required by public interest; and, 80 far from
creating gsioii adomand for greenbaoks as to load
to their appreciation, greenbaoks aud Ma
tlonal-B Bank notes would 80 down together, like
the sancse Twins Of finance that they are.
There iH but one way TO appreciate greenbaoks
and that il 10 take aoma stops looking toward
A REDEMPTION OF THE PLEDGES
under which they were Issued; in other words,
to restore public conl1onco IN the credit Of the
Government, 90 far aA it is involved III tt1om. 70
suppose that an additional isBuo Of National-
Dank notos is going to have auy such OBJECT ap-
pears to me ohimerical.
must. therefore, confoas that fail to HOO
why dny a('ditiou to tho volume OF our currency,
NJ Il now atAnaa would not DO imitation, or d,lu-
tion TO TO followed by ail tho uaualconsoqn
o. o. such measures the unsettlIng Of yaluoa tho
disturbance Of tho relations botwoon employer
and employed; rise IN prices, followed by a
ture, and
,,,., 4 DAY or RECKONING.
VIII The TRIBUNE explain why tho banks
would not liboraIly avail themselves Of tue per-
mission to shue notoa subject to redemption in
lawful ,nlotoy ?"-why tieue notoa would not
remain ~ circulation 10 long aa Congross lots
the groenbaokA ,claatu ia Htatu quo aiiu, final
y, llayinE got uoteA iuso circulation whioh wo
caanot t;ot out again, why the currency would
Or docs TnE TRIBUNE tosvs TINT, given per-
mission, tho banks would not iasuo a,y mora
notcs? Or that We hayo not enough currency
now in etraalAtions And, ii Nc AAYs not how