The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1875-01-21

We have never concealed our opin-
IONS. We have said, and we repeat:
We would, five could, retire nation
all bank currency and substitute
greenbacks, dollar for dollar. We
would demonetize gold by making
greenbacks receivable for customs
duties. We would provide for the
issue, by the Federal Governmental
bond bearing 3,65 or 4 per cent.
interest, convertible and recoverable
with greenbacks.
Now to the questions of 81. So:
"Is not the greenback currency
material portion Of the national debt,
and h4t portion which calls most
loudly for immediate payment?"
Yes, and no. It is q material portion
Of the national debt, but it il, in our
opinion. the last portion that should
be paid. Why? Because it is the
cheapest form of currency ever adopt
ed by any nation. The cost of a cur
reney consists in the price paid for
security by the note-holder. In the
case Of the national bank note the
cost is the interest paid on the bonds
pledged rs its security. The national
bank notes now in circulation cost
the country nearly $2o,oOO,ooo per
annum. They are ga mere form of
credit precisely as the greenbacks
sre "mere form of credit And
whose credit do they represent?
Why, the credit Of the people of the
country, to be sure. For if the gov
eminent goes down, the bonds pledg-
ed to secure the holder of national
banks notes 60 down, too, and the
notes become worthless, precisely as
the greenbacks would become worth
less under like circumstances. Now
the government and the people are
one and the same thing. The own
ers of bonds pledged for the redemp-
tion of national bank notes, therefore,
in fact furnish OF themselves no guar
anty whatever for the payment of
these notes. For whether the bonds
are ultimately paid or not depends
upon the perpetuity of the govern
nlent. and the narn~4..ity -of III es~--
eminent depends upon the will of the
people. It follows that the holders of
national bank notes are mutually re-
sponsible for their ultimate redemp-
ton In word, the revenues OF the
country constitute the security, and
the only security, for the redemption
of national bank notes. Now, then,
the taxpayers who are also the
holders Of these notes sustain
double relation to them: l. They
themselves 10 the payment of the
bonds through which alone they may
be redeemed. q They pay interest
to the holders of the bonds. Clearly
they pay for something they do net
get. Not being aole to do away with
this manifest injustice, the Inter
Ocean has favored free banking, de-
string, if the privileges of making
money off the people is to be contin-
ued at all, 1t be made alike open to
all. In reply to the question wheth-
er the government, in furnishing an
exclusive currency of greenbacks,
does not become a banker, and a
suspended one at that? we reply, no.
l. Issuing circulating notes does not
impose the obligation to discount
private bills; 2. Not a suspended
banker; for not only Is the passing
of a grcenback from hand to hand a
practical redemption, but every time
the government receives one in pay
ment of taxes, whether customs or
internal revenue, an actual redemp-
tion takes place. As the individual
units composing "the people" own
the greenbacks, and as the security
for their ultimate redemption is the
people in the aggregate, constituting
the government, then any currency
is a sufficient redemption. Flexibil-
ity in Volume, according to the re-
quirements of trade, would be secur-
ed by the interconvertible bond.
81. S." wants to know if the green
back currency is not the dearast or
most costly money for the farmer.
We think we have shown, on the
contrary, that it is the cheapest cur
rency for everybody. The point that
the farmer keeps his money invested
in real estate and personal property,
always open to the tax assessor,
while the capitalist converts his
money into greenbacks, and SO avoids
taxation, is not well taken; for the
farmer has also the privilege of con-
verting his real estate and personal
property into greenbacks. But If
II. So prefers the national bank
note system TO 0reenbacks. he is sub