Wilmington daily commercial., 1875-10-06
WHO SHALL ISSUE THE PAPER-THE Gov
EMINENT OR THE BANKS,

WHO SHALL ISSUE THE PAPER-THE Gov
EMINENT OR THE BANKS p,
Mr.. Hassaurek. OF Cincinnati, speaking OF
Carl Schurz's finance speech, (see the report in
Mondays CoMMgRcI.L,) thought it failed to
meet one important point-whether the Govern
rnent shall furnish the paper currency, or not.
This, in Mr.. Hassaurek's Judgment,
is the issue on which the most i'm
portant contest must be made, and he ID very
probably right. All agree that there must be
paper currency; the friends Of honest money
simply insist that it shall at all tinos be ex-
changesbe with gold. The convenience Of paper
is such that, when it actually represents con
has coin value, and will draw coin when the
holder so desires, it will always be preferred for
the ordinary uses of business, beyond small
amounts.
Having, then, specie basis for the paper cur
rency, the question is Who shall issue IL A
large part OF the defamation of tine Democratic
speakers in Ohio has been devoted to abuse Of
the national banks, and the Pennsylvania plat
for,n follows suit, although it appears, awkward
ly enough, that Judge Pershing is aud long has
been stockholder in one at Johnstown The
icmsnd made is that the banks shall become
simply institutions Of deposit and .discount-not
Of issue Their privilege of circulation is
10 be taken away. Thoy are not 10 provide the
country's paper currency. Here is distinct
precise proposition of change. and demonstra-
ton OF its bad features will be imperatiyely
needed before the fuance question is disposed
Of. for the vehemence and bitterness with which
the imitation demagogues attack the national
banks show that they think here is weak point
tlsn ii
The proposition that tile Government shall
provide the paper currency is, on its face. pleas
ing The plausible argument is made that il the
national bank circulation OF three hundred and
fifty millions OF dollarz were wiped ont, and
greenback- issued instead, then al eqnal amount
Of bonds couli he called in, sn1i the annual IN
ferert on them saved.
There are in this proposition and lts support
Ing arguments several fallacies. In the fret
place. the United States has no power Under the
Constitution to issue paper currency, and make
il legal tender, in time Of peace. This is the
judgment Of the Supreme Court, and even the
decision OF that tribunal that the Government
had the power IN time OF war has been bitterly
arssiied by every Dem1cratic orator and news
paper in tile country Bdt a-ile from this, the
argument is all againAt the policy of
masking the Government bank Of lssue, with
the members Of Congress its directors. and,
~ tue other hand. the reasons are coucll-.ye in
favor OF the provision Uf tus paper currency by
the national bank. or some similar institutions
Of issue. 1t lis agreed on ali hands that more
money is needed at some times than at others
that tho wants Of trade FOR circu.a at.ug medi
I'M Yalg r., then, the Government provides
-.
amount IL circulation, and this very few
poTsons would tie wiling it should 10. Il would
he most dangerous er-nay, fesrfr con
tfol-oyer the cguutty's business to be placed il
the hands Of any Secretary Of the Treasury how
ever fer above the average Of human nature he
might be. Hlz honesty would not be believed
u nor lis judgment approved Of, even il he
we're both honest and wi4e, while il he were
'ugns or smpeton-cf which sort there scent
10 be no lack Judging from the -everal scheme'
i raScsiity and folly put forth III the tiuancia
'iscussion-he might r'iu the countIy's bus
ne-s at any moment
Nor would the power be safe in Tie Aands oi
Congress. That body is no II judge, to decide
irJu day to dsv, fromsweek to week. even Il
il were At all times in session, tue amount o
currency which :. the wants Of trade . demand
and 10 say whether this week ten millions o
greenback- should be retired, and next weel
tTenty millions issued. Aud yet, If the Govern
rnent is to provide the paper currency, what bet
Ter can be done than to pus this business in tht
hands Of Congress?
Bat the national bs,ks furnish the currenc,
really Is the country's business need it. Thel
arc in aud OF that trade" whose wants ar,
Ia Foo u Al.
AL for money. and theyi experience as quickly
riie subsidence of the demand. Their Judgment
IN The aggregate, must be absolutely unening
for If even one here and there, unde
exceptional circumstances Of bad manage
ment, does not conform its operations to til,
actual character Of the country's business, tn,
great majority DO so, and their action ID event.
adjusted to the actual demands OF safe and legi
Innate trade.
There is now no monopoly" in the nationa
tanks. The system Of the present law liz practi
raiiy free banking even to the extent OF issuint
currency. Any one may start another nationa
pank iii Wilmington, to-day, if lie viii deposl
the securtie- required, and otherwise compl
With the Law, as al the existing national bani
nave done. The system is as nearly free as
can ever be to be safe, and it is as nearly popu
lar as thrift and accumulation. Everybody doe
not save money, but all WHO do may directly par
tclpate in and enjoy the.advantage Of the banks
while indirectly every citizen docs go, whothe
he sages penny, or spends as he earns. Their
il nothing Of a monopoly about this.
-
The Chicago In91-Ocedn had been making
tool Of itself on the finance question, and nov
It has broken out in abuse OF Secretary Dristow
tne animus Of the attack coming from the NJ,
Ham who was recently dismissed from the Chi