Knoxville journal. [volume] (Knoxville, Iowa) 1874-1986, 1876-10-11
eifecting saving to the government
OF about half million of dollars an

nually. No one complains of that.
i Now we come to the Sd Section
The first part of this section provide
that each eristing bank association
lmeaning National Banks) may in
crease its circulating notes withou
limit by complying with the existing
law, ION that subject, under which, a
every man knows, the holder Q
said notes is perfectly safe. In Xix
manner, ne,0 banks may be organ
lied without limit rs to the amour
of their circulating notes. This, Q
will be observed, makes Nationa
Banking free, aud does away will
the monopoly heretofore existing II
that business. Any seven persons
| (being the number always required
can organize a bank when the,
choose, by complying with the law
and issue all the notes they please
having deposited the requisite bonds
and wind up their business whenever
they deem it advisable. But, fol
every 800 of Increased bank note cir
culation, thus provided for, the Sec
rotary of the Treasury is required ia
redeem the legal tender, or greenback
notes, OF the government, to the
amount of 50 per centum of such in
crease of National Bank notes; but
| such redemption shall not reduce the
outstanding legal tender notes below
the sum of $500, 900, 900; thus carefully
guarding the reduction ofgreenbacks,
that even by this process does not
reduce the total volume of our paper
money, but instead thereof increase.
that volume, because for every $50 of
greenbacks so redeemed we receive
500 In national notes, thus making
an actual increase of 500 in the paper
circulation ofthe country, for every
$50 of greenbacks so redeemed. Now
what has been the extent OF the re-
duction under this clause? Up to
this time, the official reports Of the
Secretary OF the Treasury show that
less than s6,000,000 of greenbscks
have been redeemed by this increase
OF National Bank notes, leaving the
present amount OF greenbsck notes
outstanding at 1855, 100000 in round
numbers. When this net was passed
the total amount Of legal tenders out
standing was 1876, 100000. No harm
has been, or can be, done under this
clause of the resumption act.
The next clause of said section
three provides that from and after
the LIST day Of January, 1870, the Sec
rotary of the Treasury shall COM
mence to redeem In coin the legal
tender, or greenback, notes In sums
of not less than $50 each. And for
this purpose he Is authorized to use
any surplus revenue on hand from
time to time, and TO further provide
for such redemption he is authorized
to sell certain bonds, at not less than
par In coin and use the same in re-
deeming said notes.
In spite Of, and in the face Of the
plain language end meaning OF the
foregoing act, certain demagogues,
either ignorantly or Intentionally,
are deceiving the people by asserting
that after this act takes effect the
greenback notes cease 10 be legal
tender for any purpose. Nothing
could he more false. The law speaks
for itself. There is no ambiguity In
its provisions. The laws under which
greenbacks were issued, passed years
ago, make them legal tender for
all debts, public and private, except
interest on the public debt and i'm
port duties. These laws remain In
force until repealed. The resump-
ton act does not repeal them, nor
have they been repealed by any
other act OF Congress. When the
resumption act goes into force, re-
demption Of the greenbacks Is not
compulsory, the holder may either
keep them or present them for re-
demption just as he chooses. They
may remain in circulation just as be-
fore, and continue legal tender for
all taxes, debts, contracts, judgments,
and everything else precisely as they
are now. They must remain legal
tender, until the law making them
such are repealed. No repeating law
has yet been adopted. Ii was not the
Intention TO destroy the character OF
the legal tender notes. The idea aud
purpose were to bring them up to the
ralue Of a gold dotiar. Every intelIi.
gent man can see that this act con-
tinues the legal tenders as before for
all purposes, and reading Of the law
is sufficient TO correct this gross mis-
representation now the stock In trade
OF certain men who are trying To
form a party organization on the
greenback hobby.
The next error Is, that ne the green
backs are redeemed, they are retired,
cancelled, and put cut OF existence;
and that by this process. under the
resumption act, the greenbacks will
soon be Wiped OIL Of eristence. This
error certain men are industri-
ously seeking to propagate among
the people. So far from this
being the fact, tho record shows
that when the resumption acl
was on It's passage the Senate ex'
pressly voted down an amendment