The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1875-10-09
A PUZZLED INFLATIONIST.

/ The proprietor Oh tnc La Sailc IFCSS, wiz
Is postmaster at that city and therefore obliged
10 maintain semblance of loyalty to Grant
and the radical party in his paper, finds his
j role a somewhat difficult one on the financial
question, being an avowed supporter of the
widest paper rag decisions af Horace Day
and w. d. Kelly, while his party stands bodl
" committed to the ultimate retirement of all
the greenbacks by the general government
the substitution of National Bank paper in
their place, and the resumption of specie
payment in 1879. The editor attempts to
bridge his difficulty by straddling the fence
in this wise:
We have our own ideas about currency and
whether We are right or wrong, we intend to
be guided BY ouI own judgment in this mat.
ter, granting 10 our Republican friends the
same right that we claim for ourselves, TO ad
vocate hard money or any other money that
thew NAV deem hes. for the country.
Notwithstanding the public well know the
fact, we repeat again here, that while We hold
that the present national bank notes make u
better circulating medium by far than the Is.
sues of the OLD state banks, we do not favor
their continuance, as they are not an entirely
satisfactory currency.
The greenback IS very much bctter-al-
though 1t is rs yet only partial legal tender
l-inasmuch as It has all the virtues of bank
note, and saves TO the people interest to the
amount of about tcenty million dollars annu-
ally, which would otherwise be added to a
| like amount now unwisely paid to the banks
on bonds pledged foI the security of national
bank notes used by the people, and which are
about equal In volume to the greenbacks
| We oppose the issue Of currency by banks
| for the reason that no benefit can possibly ac-
crue to the people therefrom to balance the
cost by way of interest paid by the people on
the bonds pledged for its security. This cir
culatlon ought to be replaced by national pa
per tokens, thus saving the interest on these
bonds held as security for the payment of
bank.no.e currency.
But we are surprised that the Press should
still be possessed Of the delusDn that .he
government pays the national banks $4,000
900 year for the privilege Of Issuing paper
money to them, when less than q month ago
the Ottawa RepuJlicdn demonstrated that the
boot is on the other leg, and instead of the
banks costing the government S2000O,00O a
wear, the government was making Sl2 ,000,0 600
year. or Whereabouts, off the national banks.
The process by which the Republican figured
it out may have been too deep and intricate
for common comprehension, but j; was truly
loyal" and ought to have been entirely con.
vincing to every faithful radical Simple
elements in the computation wee, however,
that the $20000,000 interest the government
| is now paying to the banks on hT bonds she
must pay whether The banks own the bonds
or somebody else; so that the banks are get
ting nothing but what the government must
pay anyhow; while the Withdrawal Of the
banks would take away the government tax
or their circulation, their checks and depoS
its, and the local taxes on their clpital stock,
amounting Ia all to over $l2,00L0O0 a year,
| Indeed recent computations at Washington
say to the full amount S20,000t0 a year
This would be conclusive, but 70, one flaw
The greenbackers when they TAX. up the M
tional bank bills and substitute greenbacks for
them propose with the greenbacks to pay of
and cancel $500 300, 900 of government bonds
thus saving $20000,000 OF yearly interest TO
the government But about this also there ie
q flaw. How Goa the government, with $500,
900 900 of gretnbscks, worth SO cts. on the
dollar, pay of $400, 100000 of gold bonds,
worth 10 cts. on the dollar, This is con.
nundrum again too deep Tor us, but Which the
profound philosopher of the Press can doubt.
less readily solve.
The PRESS paper money tokens" good.
BY this expression imitation lingo means the
money the government is expected to issue
In lieu of paper based on or redeemable in
gold and silver. Instead of saying THE
United States pranise TO pay one dollar" the
new money will simply be bit OF paper, or
card beard stamped "One Dollar" and this
"paper token" isl pass for one dollar, not In
lieu of and ultimately redeemable in gold or
silver, but TO be gold and silver itself. The
government proposes 10 work the miracle of
trausubsiantiatidn, and by Its simple fiat con-
vert that which was formerly filthy rag,
into the vertiable hard stuff. Verify the day
of miracles is moi yet past.
Il |