, 1877-08-23

missioncrs, aud any hesitation or falteting
will be duly noted for future reference.
THE NAT1oNAL.BANK CIRCULATION,
There is a widespread popular prejudice
against tho issue Of currency BY the National
Banks. Tho objection is not that the bank
notes ato unsafe, or IN danger Of boing re-
putiated OF not redeemed; TINT was the
popular objection In former times against
Ssatc-Bank currency. Tho notes of tho
present banks are SO superabundan.ly secured
TINT they pass freely at par with greenbacks
III oil parts Of the country, and not dollar
Of this currency has been lost by bank
failures under this system.
Tho popular objection takes this form
that certain men combine their capital, pur.
chase bonds with 1t, deposit these bonds Mt
Washington and receive 90 per cent Of their
face value in bank-notes, which notes
they loan. to their customers, which
proceeding Is styled to be n loan
hy tho banks to tho Government at
intereat OF money which tho Government
has let tho banks have without interest. It
III difficult 10 understand this logic, but it
seems to proceed On tho theory TINT tho
bonds owned by tho banks aud deposited In
washington as security for tho redemption
OF their notes belong In some way to the
Government,
We arc stating the viow taken by some
people Of tho operation, and on this viow Of
Tue caso rests the popular demand that this
bank'note currency DO prohibited, md that
Tue Government issue all tho paper currency.
THO fallacy of this reasoning is apparent 10
any man who will ascertain md study tic
facts !; nevertheless there arc tens Of thou.
sands of persons who ara sincerely convinced
that tho Government actually pays tho banks
q bonus forissuing their notes, when tho Gov
osnment might as realily issue the notes d.
rcctly.
The CHICAGO TRIBUNE docs not favor n
continuance Of bank-note c,1rrency because
OF nny Interest In banks Or In those owning
them, Or any a:f ,ction for thom. The banks
tze no longer mocopoly, Int 1,uy be .r-
e"a'zca nny'savrs and NJ auy time, II aay
ltershus having ihe minimum Of capital r.
Gnieed. II there wero any n,paus whereby
~''s ~"'eA1 'A' e""'1 !utA'sa toH Country i
"'1u'sa@ney of currency which would cirrnlato
at par with coin, and thereby admit coin Into
general circulation, there would not be tho
siigtltest objection t. rutiring tho bank.,ote
e,sc1iA'lon' No'h'ng ~ more curtain a1sn
that coin currency will not cirrulate With
paper currency, uutcss the latter 30 at 1,ar,
a''o .'a1 requires II 10 10 convertible IN de-.
1tM M1I SF,tr nriT7
1''anu 'n'o CON. iho ISSUE OF legl'tender
no'eS was necessity o. tho "ar. II waa Ut
crazy "ae'1c'oey'; u was N appeal to nm
ese'''e aa1as"se' "a''"ntsd " Tho coHstt-
~. au'.oa oa1y oy IN overwhelming no<assity.
Inns w"s.money was issued - follows: by
w 'et u fsp' ~ 1889, Slao.oN'.do0; "
tne ~. ot ."'y ~ !nez' elW'ooo''no; by
.n' "c' o' alafcu ., ls"a' Sloo'Wo.ooo; To-
w "at''noney' :'oo,ooo'ooo' Ihis laat net
eon'aaea son naa p,eage toat no more than S4oo,-
o"o'ooo saouta DO 'ssuod' nnd tho same act
sooA IRON TINS money It's conveftibility into
oohas. A1e" OF thcao notes wcro retired
a''ee lne war anu when the panic took place
III 1919 some poft'on OF those withdrawn
"e3s ielsaueo. IN ie'a tnese were outatand.
ihe sa"''ooo'ooo, Wn1cn was increased dur
,ns .ne panlo 10 as1'ooo'"oA Iho original
u''.'' nome'es' WIS never exceeded.
once the "aF' tho question OF tho power
ol .ue government IN time Ut peace to mako
any."'n8 out eo'a anu salVer coin legal
to''asF nas peen 1aole'aay passed upon by tho
supreme Court Ine power to mako tho
national notes q 1eea'.'ender IN payments by
TIC Government anu between individuals
was at'saea ny q oafe majority Of the Court,
~ 1a' Me'sase' not reanua8 from any d.
'ce1 power IN Ae const'tut'on, but from tho
f'gas 70 resort 70 any measure i'll time OF
war 1naao necessary py tAo public extgencles
Accordingly, there was an unanimous opin-
ion that, independent OF tho state Of war,
and In time OF peace, Congress had no power
to mako irrodeemablo greonbacks legal
tender in payments between individuals,
Under tieEa cfrcuustnncas tanv;tr mt ~