The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1875-11-12

Compound interest legal tender
notes 217O24, ,l6C
Temporary loan certificates 40
d. d. 1O7,14S,71;
Certificates of Indebtedness S5,093,00
Treasury per cent, legal tenders 32536,9
Treasury notes, past due legal
tenders and not presented l523,O2l
State bank notes 7S,S67 ,57i
Three year treasury notes $50 100000
Total September /, 1865 S2,111, ,67S,6S!
Circulating Medium, exclusive of coin
Dec. |, 1873:
United States notes S367, ,0O1 ,6St
! Fractional currency 4S,000,00C
Certificates of indebtedness bear
ing date) G7S,OOC
National bank currency 350,000,00(
Total u 1cember /, 1873 S765, ,679,6St
Contraction from Sept. l, 1865,
to Dec. 1, 1873. s1,345, ,99S, ,9ot
These figures, taken from the books of the
Treasury show, that from September 1865
to September 1873, there was a contraction
of more than 60 per cent and this enormous
contraction was undoubtedly one of the
prominent causes of the financial panic that
came upon us in 1873, and has continued
with increasing power up to the present time.
1t is in vain to deny Jhat there has been a
fearful reduction of the amount of the cir
culating medium, President Grant, in his
annual message in 1874 says:
''ln view of the great actual contraction
that has taken place in the currency, and
the comparative contraction continuously
going on-due to the increase of the manu-
factores and all the industries-I do not be-
lieve there is too much of it now for the
dullest period Of the year.
That this contraction is still going on, de-
spite the deDial5 Of the Republicans, and not
withstanding the operation of the resumption
act, is too manifest to require further
proof
Let us now turn to the question of the
| quality of our currency. If there is any one
issue that is clearly defined in the two plat
forms it is this: The Republican platform
demands Il uniform national currency" and
in effect, demands that all the paper currency
shall be national bank notes This is what
they mean by "free banking" and this will
be the legitimate eject of their resumption
act. Greenbacks are to be called in and
national bank-notes issued in their place.
The Democratic platform demands that the
national bank.notes shall be called in and
greenbacks issued in their place. They
demand uniform national currency" and
that is what we want also; but how shall it
be made uniform. At the present time it is
about half national bank notes, and the
form" it must be all one, or all the other.
We propose to make it all greenbacks
But there is an objection to this: the issu-
ing of these greenbacks was unconstitutional:
True we said so at the time; and we are not
convinced yet, from any argument, that
such is not the case. But the Supreme court,
packed by President Grant for that express
purpose, has decided that it is constitutional;
and since, for the present at least, we must
have some paper currency, we are content to
abide by that decision, so long AS we need Il
paper currency at all. Besides, there is no
more constitutional authority for the national
bank notes than there is for greenbacks. If
the United States government has no cOnsti-
tutional right to supply us with paper cur
rency directly, it has still less right to do so
through the medium of national bank issues.
The former is but simple, and the latter
double, violation of constitutional proviS-
ions for in addition to making something
besides gold and silver pass current as mon
ey, it assumes the right in Congress to grant
charters Of incorpOration-a power nowhere
delegated to Congress.
The simple question, therefore, is, ''phich
1CW 1CG hare "a uniform national currency
consisting, until we are able to resume spe-
Gle payments of greenbacks; or one con-
sisting of national bank notes?' 1t seems
to me that there ought not to be much diff
Guilty in promptly deciding this question in
favor of the grcenbacks. There can be no
choice between them as regar'S their safety.
The promise "to pay" is fultih'd in regard
to neither of them, if "to pay means to re-
deem in gold and silver, but they are at par
as to each other and equally below par as
compared with coin. The United States
bonds deposited as a security for the nation
al bank notes, and The guarantee of payment
by the United States government, are the
only security we have that they will ever be
redeemed. Like the 6reeubacks, the only
thing that gives them Gu re icy is the credit
of the general government There is, there
fore no difference in this respect.
But in another respect they differ very
widely. The greenbacks cost the people
nothing, but the national bank notes cost us
an enormous sum. On every 100000 of ma
tional bank notes in circulation, the people
pay$G, 000 in the shape of interest on the
bonds deposited in the United States Treas
ury. The $3.50, ,00O,0 600 Of national bank
currency we now have costs the people an
nually $23, 100, 900 che entire paper cir
culation which we now have, 800 ,679, ,6S5,
is converted into national bank notes, it will
cost the people $40, ,j54, $50, Surely it can
not be wise policy to supply the country
with currency at such ruinous cost as this,
when it can be done just rs well without this
vast expenditure.
The national banking system, from its very
inception has been a gigantic monopoly. 1t
is not much better in this respect since the
lion, nptn la
guration of free banking. 1t is true that
any man or assocition of men who can COM
mand the capital can engage in banking,
uader United States laws, But all men have
not the requisite capital, and there is no rea-
son why those who have should be so large
ly favored as they are, at the expense of
those of limited means. The whole policy
is to make the rich man richer and the poor
man poorer. 1t is for the interest of the
rich and the oppression Of the poor. Why
should a banking company, say with capi-
tai of Sl00 900, be furnished with 800, 900 to
loan out on interest, to discount paper with,
and at the same time be paid $4,000 in gold
as interest ON its bonds? The bonds surely
should not bear interest while they are left
in the Treasury to secure the redemption of
national bank notes. BY rejecting this ma
tional banking system, issuing greenbacks
in place Of the national bank notes, we can
save nearly fifty millions of dollars, In the
embarrassed condition of our country, with
the heavy load of debt upon us, and an OPP
pressiye burthen of taxation, surely this
amount ia worth saying-especially when it
can be done with perfect safety and with in
Justice to no one.
There is still another question intimately
connected with the currency, about which |
desire to say few words-I refer to the
banks. Both parties are in favor of free
banking" but the banks of the Republican
party are national banks and they are banks
of issue as well as banks of deposit and dis
count Democrats are in favor of "the eX-
tinction of the present national banks and
the establishment in their stead of a system
of free banks of discount and deposit ONLY
under such regulations as the States respec-