The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1876-09-07
NATIONAL BANKS VS.. GREEN
BACkS.

The following letter contains some
statements that should be known. And,
we have the honour of an acquaintance
with MR. WILSON, and know him to he
a gentlemen flarge financial ability and
experience, We take pleasure in placing
his views before Gur readers
New York, 10 West 46th St., Aug. I, rs
Hon. W. G. FLAGG.
President Ills, Farmers Association.
Dear Sir II have lately returned from
England where spent some nine months
on financial business, and have not yet
had time to take up the broken threads
of home events, since my return. On
the currency question, which have en-.
dea vored to fathom, it seems to me that
the Democrats have been compelled, re-
luctantly perhaps, to yield ground In
the right direction, that is, toward the
retention of the Treasury currency, if not
the cancellation of the bank circulation.
Taking this view of the situation, | am
inclined to wish them Succession still
regard the currency as by far the most
important issue before the country. Up
to 1872 supported by my vote and pen
the Republican party, and as hoped the
party, that would best consolidate the
shattered Union. But as you know, from
the lengthy communication, addressed
your association in the early part of last
year, greatly deprecated the financial
policy of the Republican administration
under President Grant.
There is, learn, on the unquestioned
authority cable among the leading
newspapers of this city, having for its
object to suuelch all information respect
ing the predominant feeling in the West
ern States, in favor of saving to the Ma
ton the advantages of National circu-
lation, The Sun and World, are COM
PEELED, as the organs of the Democratic
party in this city, to subordinate the cur
rency question to other issues, but both
these papers as well as the Herald which
processes to be independent, continue to
exclude from their columns, every thing
even in the shape of news form the
Western States, which tends to favor a
National circulation, except through the
banks. That is they insist that all the
Treasury notes must ultimately, sooner
or later, be issued to the National Banks
and be by them lent out to the public at
the highest rate of interest and bonuses
these institutions can extort, and these l
have reason to know, are not lOU rates IN
the South and West. 1t will be interest
ing to the Western people, generally,
who, as far as l can judge from consider
able experience during the last four
years. in Ohio, Indiana and a part of Ill
inois believe in the Nation having the
profits of the paper circulation, to be in
formed that the six or seven daily jour
nails of most influence in this city about
three years ago entered into all explicit
understanding to 60 for an extinction of
the legal tender circulation. These
journals we're all in favor of it, until the
decease of the founders Of the three
chief morning papers, the Herald, Times
and Tribune. These, and all the others,
are now controlled by new men and cap
italists, who have large interests in Ma
tional Banks and derive vast annual
income from advertisements from this
source.
think it would be of some advantage
to the public interests, just now, when
the nominations are being made, if these
facts could be widely made known all
through the West and South. state the
fact from positive Information received in
London, last winter from gentlemen
who held the position of managing editor
of one of the journals in question, under
its original founder, and you may use it
ifyou think fit.
During my stay in London | put my
self in communication with the Marquis
of fSalisbury, Secretary Of State for India,
to ascertain whether the State paper
money issue department for India, was
working satisfactorily and received the
most gratifying reply. During ten years
it has been in operation, the circulation
has risen to sixty millions of dollars, and
is daily growing in favor. It has thus
saved that amount to the Indian Empire,
and as the Government of India receives
its own paper for all taxes, there has been
no need to hold large amount of metal
for occasional commissions. Indeed, |
learn from a gentlemen lately returned
from India, that people prefer the paper
to the silver coin, which constitutes the
basis of circulation in that country, and
that there is no demand whatever for
silver for exchange for notes Further
more he said in some parts he had to pay
one to one and half premium to get pa
per rupes.
Will Mr.. Cooper get much support
from the West? If he did not propose to
demonetize metal | would 60 for him as
the most candid of the nominees for tn
Presidency. AS it is, think the friends
of Reform in administration in general,
and currency in particular, can hardly 60
wrong in voting for Tilden and Hen
bricks
Since writing the foregoing, have had
talk with a gentlemen from Ohio, who
asks ME to add, what l have SO often in
sisted on in my letters to the Industrial
Age and Evening Post of this city, whose
columns have been closed against every
thing favoring a national circulation,
since my letters appeared in 1874, name
ly, the impolicy Of forcing resumption, by
act of Congress. | have, as you are
aware, been consistent "hard money"
man, but have said on all occasions, "let
the resumption be brought about by the
natural laws of demand, and supply"
While cannot agree to cut loose from
metal as the basis for sound circulation
| see clearly the impossibllity of forced
resumption. In eight years, gold, as
measured by paper, has fallen from l45
to l12 or 33 per cent. Now it requires
no argument to prove that this fall, has,
in eight years, wiped out thirty-three
per cent, of trading capital, or at the rate
of four cent per annum. In other words,
the shrinkage on the goods of traders
and manufacturers, and the producers of
farm and all other products, has been at
the average rate of four per cent, per
annum. Does this undeniable fact prove
that the great financial difficulties of bus
iness men at this moment results from
this cause mainly, or nave we to seek for
it in other directions? Primarily, per-
haps, we must take into the sum, the
factor of initiation. But we are dealing
with initiation and have only now to do
what is reasonable to alleviate the