New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-09-17

i'm this and other scabOard cities who, while
protesting to favor resumption, are willing to
submit to no sacrifices to bring it about
Willingly or unwillingly the advocates OF the
gold standard are compelled to content them
selves with simply opposing the schemes OF
the inhatiOnists and rcpudiatOrs. We shall try
to make it plain that they have work enough
before them to succeed even in this.
The last Congress passed very short sighted
law, the object of which was to secure a grad
ual initiation of the currency by means OF an
increase of the ncOnverible bankn0te circu-
latiOn. Considering the interests of the issuers
of paper money apart from those of the people
at large, the emission of such paper is always
profitable. Not to go deep into this rag-money
question, we shall content ourselves with the
observation that incOnvertiblc paper Is a tax
on the community at large. The issucrs are
enabled to possess themselves of articles
of real value for which they return
nothing but bits of paper which
cost them, let us suppose, one dollar
per pound avoirdupois. The last Congress.
with the transparent purpose of getting an in
creased supply of paper money, authorized
4" free banking" That is to say, they con-
fcrrcd on all existing and prospective banking
companies the right to tax the people AT large
by creating additional bank notes, not convert
IDLE into coin, thereby giving the lhlationlsts
and regulators of the West formidable
weapon of which they have not failed 10
make effective use against DahkS anu
credit in general. The first step III
the direction of a sound currency must
be the repeal of that privilege conferred
on banks to increase indefinitely their ire
dcemable rags. If our currency Is to remain
what il is the more grcenbacks and the fewer
bank notes we have the better it will be for
the taxpayers If from this date the volume
of greenbacks could be kept fixed, and the
privilege of taking out additional paper money
on deposit of bonds were withdrawn from
banking companies we might in time Outgrow
the depreciation of our currency. With the
"free- banking" provisions of the Act of Jan. IA,
1875, remaining on the statute book we shall
nerer overcome the gold premium, unless
through the unpleasant experience of an cpl
demic of bankruptcy among the banks. With
in eight months, in these unpropltious times,
ten millions of new bank circulation have been
taken out, and whenever we enter upon an
other cycle of speculation there is no limit
which can be assigned to the increase of bank
circulation short of the exhaustion OF the
United States bonds available for deposit as Sc
curty.
The dilemma is how to get rid of the free
banking law without being subjected to some
thing great deal worse in place OF 1t. The
present surrenders of bank-nOte circulation
and the retirement of greenbacks to the
amount of 80 per cent of the new issues OF
rag money conceded to the banks only create
a void which will be filled as soon as business
resumes its wonted activity. Fiye-sevenths OF
the last House of Representatives voted again
and again for an increase of the paper money,
and if Ohio and PENNSYLVANIA are carried
for imitation in October and November,
cember the President will be our only prOtec-
ton against "a moderate expansion" lit
is the one conspicuous thing for which his
civil administration must always command our
gratitude, that he tore up the message
wherein he approved an imitation BILL No
weightier matter was ever left to the arbltra-
ton of free people than is submitted to the
voters of Ohio A wrong decision cannot fail
to aggravate the disorders which Cypress our
commercial system, and with initiation rampant
we should be fortunate if we escaped the
utter destruction of public and private credit.
All talk of restoring confidence Is waste OF
breath while the future value OF the legal
tender or debt-paying dollar is unknown.