Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1875-08-13

Union This has never been accomplished be
The public debt has this ono advantage. that It
oan be used as an absolute security for paper cir
s, Sulatlon and yet pay mod moderate profit to the the
bonds Of the Government, which are left with the
government IA security for tholr circulation. In
which holds the indebtedness OF the
Government to tho amount Of
and beyond that, issues no circulation for which
there is not an equal amount OF gold on deposit,
30 that each paper pound is u representative OF
gold pound left In It's place.
We can not altogether forget tho history Of the
re-establshed in England and on the Continent of
Europe, and our Government was casting
about for purebasers OF ITS bonds, this system OF
Government bonds should he bought and held at
home The banks took the bonds and paid for
them In cash. When bank was organized, the
first thing 1t did was TO give its entire cash
capital to the Government for an equal amount
fbo % GSySTnmnt bonds sscntv es Sr @ Tn
ment of its circulation, which was
chased Now, d5neral So cary and md the Democratic
speakers say that the people have to pay to the
gSncy psmSs S3oOOUo per 6rnp annum Tor the cur
held by the banks. But tho Government
pays no. more interest to the banks than
II would have TO pay on the same bonds in the
hands of foreign capitalists. II is difficult to see
any ground of complaint on that score But the
banks besides, pay to the Government n heavy
tax for the privilege of the currency OF one per
cent. on the circulation and onohaif per cent. on
,is largely benefited by having the banks hold the
bonds, and bank upon them instead OF having
them sold In Europe. The income derived by the
United States Government from this source has
averaged probably not less than five millions
banks pay taxes to the State Government as ON
other property.
Nevertheless. 1t may be best to change the sys-
ten, and VI 80, the Republican party are open TO
conviction on the subject, Our friends may find
some trouble In devising system OF state banks
with equal safety and atlording equal advantage
to the Nation.
The Democratic platform demands system of
free banking. BY reference to the act OfJanuary
10, 1875, fixing the time of resumption of specie
payments, It Will he found that the
of free banking, the difference between it aud
what tue Democratic platform recommends being
tnat & Gne % one e ,s tho aIa secured Dy Nsona
against loss to the holders n its paper does not
appear. These National banks were Incorporated
generally about ten years ago for term of twenty
years. Our Democratic friends propose to ex-
tinEuish them Immediately. / can not see any
ments by such violent measure attempted at
this time, and If our Democratic friends were once
safely In power am inclined to believe that we
should not hear much more on the subject Of the
National banks until some time near the explra-
tiou OF the term Of their legal existence and that
would not be sooner than about ten years.
Our Democratic friends. while they wish to get
dne Danng power f INTO sne loeai ana STATE JqEls
the currency shall all be National. and issued by
the United States Government. II that policy is
best, the Republican party Is open to conviction
on that subject, MS soon as the time shall come
when they can meet that question in good faith.
But 1t has not felt that 1t was necessary to make
on issue on that point for this canvass. Nor has
It seemed necessary TO agtate the question Of at
which have about ten years to run, in order to
find topics for debate.
This proposition in the Democratic platform
would seem to be o olamor for change, such as un-
easy politicians out OF Office apt to
invent for the purpose of getting in.
Stability in financial affairs is important 10 the
business community; and such changes as this
which is now proposed by the Democratic Con-
cussiOn before turning our backs on institutions
which aided the Nation in its supreme trial. with
near four hundred millions Of capital, and which
have served 1t In peace as safely and well as the
National banks have done.
The amounts which the people of this country
have lost by the depreciation Of the circulating
notes issued under former systems Of banking
might not be sufficient to pay our National
other liability that could be named; and those
losses fell mainly on men who were least able to
bear them. No holder OF any National bank
note OF the three hundred and fifty mil
lions that have, been issued has lost
membered when IL Is proposed TO extinguish
them before the expiration of the short term of
twenty years for which they were incorporated.
THE GOVERNMENT SHOULD NOT HEREAFTER ISSUE
THE PAPER CURRENCY OF THE COUNTRY.
All agree that coin should bear the Impress of
the sovereignty Of the Union. The inference that
the paper money should be issued by the
Government is plausible. But upon reflec-
tion, It Will be found that the two cases
are entirely unlike. and as think, the Inference
Ia not only deceptive, but dangerous The coin
age of the country is limited ouly by the gold and
silver IN the country recurring the stamp Of the
Government to mark its value quantity. The
stamp upon the coin shows in authentic man
ner the quantity OF gold or silver contained in the
coin, and Its consequent value The silver or the
gold in ngOts would be Of precisely the same value
as in coin. The Government authenticates the
quantity and the intrinsic value OF the metal. The
Government does not increase or diminish its pur-
chasing value.
the power OF issuing paper money in the hands of
Congress could be had than is furnished by the
present zeal OF the Democratic party to have more
paper issued "iO equal the wants of trade" Here
Is the obvious danger OF the suggestion OF
Mr.. Boutwell, when Secretary of the Treasury,
that We should not concern ourselves about
returning to specie payments. but let the country
grow up" to the currency. The difficulty Is, that
rencY, the Democratic, or some other political
party, will press for an increase of Rreenbacks,
and If they get into power will enlarge the volume
of Green6acks by new issues. and then we shai!
have TO begin to "grow up" again. But this grow
Ing up TO s9s currency .Ss & &RrSetiS16e at all
and the relation OF debtor and creditor as conrac-
tion, depending for its intensity upon the rate at
which We grow up Tho pressure will be against
the limit. No Nation which has once embarked
in legal-tender paper money, has ever observed
that is, till the paper should be equal 70 gold, un
less where q day has been fixed for resumption
1t Is most rare that any Nation which has become
deeply involved with legal tender paper has
either maintained any limit, or has resumed Re
pndiation has been by far the more general re-
England resumed In 1921, after having tried the
policy or growing up" TO its paper currency for
about twenty-five years. 1t was found that they
had all the hardships Of resuminR, while they ap-
preached no nearer TO specie We have found the
same thing in our experience. We are no nearer
10 Specie II we take the quoted difference between
paper aud gold, than we were four or five years
ago. The premium on gold by the year 1870 had
fallen to about ten per cent. and so re-
manned for O considerable time. Meantime, here,
as In England, prices have been affected by fnan-
oial panlcs.
The time is undoubtedly auspiclous for making
our arrangements 10 resume. In 1919 the act was
passed in England TO resume in 1922. But the
bank commenced paying specie voluntarily in
May. 1921 SO that the act never had any direct
effect. II only determined the policy of the
Nation, and resumption took place
IN anticipation OF tine time liked
by the act. The act fixing the time of resumption
was passed In 1919, the next year after the great
financial panic OF 1913, and when prices had, by
the effect OF the panic. been greatly reduced.
Some political writer's, failing to notice the
downfall OF prices caused by the panic Of 1913 have
greatly exaggerated the depression In prices CON
sequent upon the resumption. l think General
Ewing has fallen into that error.
England bad waited long for something TO turn
up, by which they should get back to a sound cur
renoy. In i0l1s business men and bankers could
not be persu AIDED that any measures were neces- |
Bary, or even that their money was deprecated, |
and diaoredited the famous "BulliOn Report" OF |
Of parI 70 -