New-York tribune., 1875-09-27
THE CURRENCY DEBATE.
THE NATIONAL BANK CURRENCY.
THE PROPOSITION TO REPEAL THE NATIONAL BANK
BANK ACT-sALg OF TIIg BONDS.

THE PROPOSITION TO REPEAL THE NATIONAL BANK
BANK ACT--sALE OF TIE BONDS.
To tho Editor Of The Tribune.
SIR: On the subject of the currency, legal
tender payment Of debts and the standard OF val
ues persons have correct IDEAS 1t has bcen pro-
posed by persons that the national bank act DO
repealed ard thus the national bank notes DC Withdrawn
from circulation and substitute TO be ssued by tho
United States, gTeeDbacks," and make them legal
tender In payment Of debts, and without any provision
requiring that they shall be redeemed in gold and silver
coin presentation. On this subject have few words
to say.
The use Of these notes for currency is n very well
far as 1t saves the United States from paying interest
the money used for circulation but this currency should
be made redeemable In coin presentation This world
be resumption OF specie payments The United states
can do this by using the gold for this purpose instead OF
selling It for tho premium, has been the practice Tho
paper currency would then Do at par With gold. Tho
people knowing that tho paper currency was convertible
into gold at option would only require sufficient re-
deption for the purpose OF securing change preferng
the paper large amounts moro convenient to carry
and nation that uses ts Indebtedness IN the iom
of paper promises to pay standard OF value, anu
legal tender in pay Of debts and not rcdeemabe IN
gold and silver coi builds and risks its prosperity on
sandy foundation Its financial syston u subjec. 10
sDasiDs and fluctuations and III tho event of war within
It's borders with other nations its currency is liable 70
sudden deprecia ion, and may become nearly or quito
worthless AS the national banks are required 10 bur,
chase United States bonds 10 deposit WIN Jlc Ihhcl
security for the payment or te notes
for circulation issued by tnem this creates demand
for United States bonds, and, consequently,
they are at a premium compared with
present paper currency OF from 10 to rs per ce'
Now to ilustate the truth OF the foregoing remarks. X
the National Bank act bc repealed as has been proposed.
ard tue National bank notes thus Withdrawn rom crci-
la.ion these bonds held security Will he thrown
upon the market, with special dcmnDd for them De
yond the wants of Individuals and this dcm4ad limited
O those who readily obtain higher rate or inter-
est on good security By either direct loans or Sthcr in
ycstments Consequently viii tscD be no premium
on United States bonds. they would in thai case either
be at par with the paper currency or httle he"H ",
ard present currency IL worth 10 per cent less than
gold This shows the liability OF fucuati0n Ia tue yalao
these paper promises pay In tino OF eacc aud IN
case Of war there liability Of such currency becoming
worthless. Another serious objection To paper money
being LEGAL tender and standard OF yauo arises from
the tact t the price OF all real estate farm
produce, manufactured articles, and goods generally 10
uctuaie in price just the paper stGnGard OF NaIe
uetuates 10 illustrate this, one only has to refer 10 e
prices OF thcse commodities during the late war Win
currency not redcenabe in gold Politicians ignorant OF
political economy and financial science, make platforms
n nominating conventions for tic guidance or their
spectiye parties; bur intelligence and good Judgment.
diycstcd personal interest," qualifications the people
most need in tine they trust with tAe managemeBtI "
tIer general interests a nation. ABEL IUkRELL-
AClaroSs Penn, Sept. 20, 1870.