Mexico weekly ledger., 1878-11-28
NATIONAL BANK NOTES AFTER
RESUMPTION.
Will THEY BE An CURRENCY:

WILL THEY BE AN UNIFORM CURRENCY?
1t is nearly Is years since specie
payments were suspended, consequent
~ the majority of those engaged in
business at present have had little or
no practical knowledge of its opera
ton, and still fewer can recall the f.
nancial condition c this country dur
ing the existence of the United States
Bank.
Communities have been using a
currency composed of greenbacks and
national bank notes secured by bonds,
and receivable everywhere .or all fed
eral dues except duties. Nothing
could be gained by exchanging one
for the other, and together, they
made a uniform currency of equal
value everywhere. No n has troub-
led himself about the notes be has
been receiving. They might be
greenbacks or blackbacks, issued by
banks located anywhere.
However improbable it may seem,
this indifference after resumption may
give place to the strictest scrutiny.
As greenbacks will then be as useful
as gold to the banks, they will be
boarded by them. Indeed they are
already reported to have secured
500, 900. 900 of them. As they are
redeemed they will be retained in the
treasury, ana blackbacks may consti-
tute our currency. To this must be
added subsidiary coins that + ten
ders for S. only, and therefore not
worth accumulating.
{ In this way the currency may be
contracted and deprived of uniformi-
ty, and if that should be the case il
will be scrutinized and assorted &C.
cording TO its availability.
:, Many that read this will be ready
u to exclaim, Nonsense! Are not na-
{ tional bank notes redeemable III
u greenbacks, and will not these com
mand coin? That is undeniable, but
{ that of itself will not be enough tC
{ secure uniformity of current value
Let it be remembered that redemp
, ton of bank paper with coin did no
secure it. Under that system Meth
err Western or Southern bank pape
was at par Ia New York, and unles
the managers of national banks situa
ted in those states provide for the re
" demption of their notes at Eastern
clearing houses they may be sou
there at discount. This will be an eS
" pensive operation, and nay be large
&c Iy neglected, but as New York agail
- becomes the London of America, q
it is certain to do under redemptio.
. of g~reenhacks at that place, funds g
that city may command premiums
Suppose . New Yorker hes $1,000 c
a St. Louis national hank that il is de
sirable to convert into gold. Unles
the st. Louis bank deposits green
y backs or coin with the New YorI
d" clearing house its notes viii moi b
redeemed there. The New Yorke
must send this money to st. LOUIS t
get greenbacks or coin, and then mus
buy a bill on New York or Iisk tn
mails. The probability is, that h
- will prefer to pay a broker u discoun
: to cash his notes and relieve him iror
trouble, This has been the rule c
bank paper in this country wheneve
it has been redeemable. Even til
= notes of the United States bank
though that institution was designe,
~ to prevent such a condition Of Tn
currency, did not accomplish it. Til
notes of that bank were redeemed a
- the branches that issued them. The
:. were practical legal tenders, whic
cannot be said of the blackbacks. an
- receivable everywhere for all dues t
government, and that was the strong
est reason for abolishing the bank
Very often New York funds brougt
:, from 3 to 5 per cent. in St. Loui:
Under the State banks, that succeede
the U. S. bank, the currency was i
o. even a worse condition.
- Never, in the history of this nation
y did it have an uniform currency unit
; lrredeemable greenbacks were resorte
to, and after commencing to redeel
. these, if redemption is maintained {
one city only, We ask, IA there b
..e the least possibility of longer enjoyin
!. such a blessing? This is an importar
ouestion.