The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-10-18
THE CURRENCY QUESTION:
Important Letter From HOii' '"
Banning Ora Einanciai
Questions.
.r,,o .,,,soru of the Democratic
Candidate for GasernOT %
minnesota.
Sr PATTI. MINI. Oct. s, 1877.


,;o, IF the nolicv towards the South, con-
tended for by the democratic parry o'ei
since the war, the next subject uppeliloS'
in the minds OF the people is that relating
ia the currency. As the democratic con-
vent;on which nominated me for Governor
did not 90 further in the matter than 10
declare its views Of the legal tender cur
rency contemplated by the constitution
and resolved in favor Of resumption OF
specie payment as soon as it can be cone
without detrimvnt to the business interests
of the country, it seems to me out proper
to nursue the subject somewhat further
than was done by the convention.
What shall be the nature ana characted
Of our circulating medium, is a question
of great importance to the people, ana
iustlv occupies a prominent place ID the
nublic mind at the present time. oilail
we have gold, or gold and silver only,
or shall we have paper also, ana II paper
TO anyextent, by whom or by Whet au-
thority issued and how made secure
Our present C rculating medium is now
ahout seven hundred millions Of dollars,
consisting of United States treasury notes
or rreenbacks and national bank notes,
in about equal proportions. mat tne
volume of currency is too large Tor me
business wants of the country will hardly
be claimed by any one; in fact it IS too
small and limits and depresses the value
of labor and the productions OF labor ny
its insufficiency in amount, and any lurtn-
er contraction must necessarily cause d
corresponding shrinkage in all values ex-
cept the value OF money.
We now have very much less currency
in proportion to our population IMAM the
Governments Of Europe; we have but $40
Der capita, while England has 81 45;france
$50; Germany $3.50.
But allowing seven hundred millions as
sufficient for the present, the question IS,
of what shall it consist? Ii we hau ana
could retain that amount of gold and Sill
/ yer in the country, 1t would not DC SO con-
yenient or desirable for circulatlve cur
rency as paper redeemable at par; ana the
latter would be demanded ana furnished
from some source, and the com Wouiu
jdly rest locked in vaults. but no one
will pretend that we have, or can procure
and retain in the country any tnlng like
this amount OF gold and silver coin.
The so called hard money advocates dc
not claim or pretend that we should OF
can have an exclusive metallic currency
that the circulating medium OF the coun-
trv will. and necessarily must, mainly con
sist of paper or some hlnu
as is the case in all prosperous commercial
manufacturing and agricultural countries
will be allowed by all thinking minds
This being so, we come to this question
How shall. his paper currency be flH, is hed
There are but three modes which have beer
tried or suggested so far as am aware
One is for the Federal Government to Is
sue direct. in the form of treasury notes o
rreenbacks; another is to create natlona
\ banks and delegate to them the power u
| supply the currency; and the other is tt
remit the matter to the States and return
to the old State or independent bank sys
tenn.
know of no one who advocates the lat
ter plan. The objections to ii are so man
fest and numerous, and are so vivid il
the recollections of the public mind, as t.
leave it without any advocates--at least
know of no party or prominent man wh'
advocates a return to that system. Cnde
it the currency had no uniform
value throughout the country, but the bill
F. of banks in one section would be at dis
count in another section, and every bll
had to be carefully inspected at the banl
issuing it, and no one but an expert coul'
tell ANYTHING about the Solvency or STANG
inc of the banks, and there was no safet
in the use of this paper, no safety in hold
inc it over night. Yet such was our cur
rency until superseded by the treasur
notes and national bank currency durin
the war; and from the experience we hav
had under the different systems, | appre
bend very few, if any, can be found VIII
would prefer to return to the old State c
independent bank plan. This being SC
we are brought to the alternative OF Il III
tional bank currency. or treasury 'note'
for the disposition seems to be not to cor
tinue both, but to retire one and leave til
field exclusively to the other
The republican party is committed
the national bank policy, and it is
effect the policy of that party to al
yocate the redemption and retirement
the treasury notes. The democratic part
won its greatest victories and gained
greatest renown and prestige in opposir
national banks The arguments urg,
against these institutions by jackson, Be
= ton, Wright, and other leading democrat
apply in their full force against the pre-
ent national bank system, While there a
also now other mighty objections whl'
did not then exist Ii these banks are
be continued and clothed with the pow
of supplying the circulating medium
this country, it is virtually givil
them along with such privilege, son
. forty millions 81 dollars annually, to maj
up, which the public must be annual
taxed to raise. Thus instead of convertiI
its gold interest bearing bonds into tres
ury notes or greenhacks, as it may do
supply the seven hundred millions of Gu
rency, bearing no interest, the governme
would continue to pay interest on its e
tire bonded debt and furnish the ban
- with the required amount of curren
notes, which they would then loan out
from six to twelve per cent. interest, a
would also draw the interest on the Cover
ment bonds deposited as security for t
redemption of the notes. 1t would siml
take from the pockets of the people a
transfer to the pockets of the bankers sol
forty millions of dollars annually withC