The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1878-09-27
Some Questions Answered.

The f1at-money people are making so
many and so extravagant statements in
their arguments before the people that
we receive daily numerous letters asking
for information on various points. Thus
a correspondent at Hinchley, ILL.,, repre-
sents that Mr.. Glover, chairman of the
Greenback state committee, in q speech
delivered at that place, devoted some
time to an explanation of the profits
made by national banks from the de-
structiOn of the bank notes by fire and
other agencies. OF course, Mr. Glover
would not have made this statement un-
less he believed it, but that does not ex-
cuse his Ignorance. Ali the profit from
the destruction of bank notes accrues to
the government. The government issues
the notes, and the banks furnish the
means of redeeming them The banks
pay taxes on their circulation and on
their deposits. Greenbacks are not taxa
BILE. To substitute greenbacks for ma
tiOna1 bank notes will be to substitute
$3.50, 000, 900 of untaxable CURRENCY for a
like sum taxed. We have not vet heard
the proposition to tax the greenbacks.
These f1at-money people are also deal
ing out strange versions of fact concern
ing the paper money of England and
France In answer to more than twenty
inquiries as to the facts pertaining to
the paper money of France, we repeat:
~ All the paper money in France Is is
sued by the National Bank of FFanae,
and not by the Government. (2l The
amount outstanding is about $3.50, OO0,-
geo. (3) 1t is redeemable on demand in
coin, at the bank or its branches az It
is not legal tender for public or pri-
Yate debts TO any amount whatever.
a correspondent at Racine asks if it is
true, as stated by the fiatmoney orators,
that "the notes of the Bank of England
are based on the wealth of the nation. /"
and are money of themselves, requiring
no redemption, and are in fact never re-
deemed, the gold on deposit in the bank
being held there merely for convenience.
and never for the purpose of redeeming
the notes. The truth is that the Bank
of England is allowed to issue notes up
TO certain amount ON deposit of gov
eminent securities; for all notes above
that limit the bank must have collar
OF gold for every dollar of paper out
standing. The notes are redeemable on
demand in gold. A scarcity of gold in
England necesSitates contraction of the
bank notes, and any serious demand on
the bank for gold cOmpels of necessity a
retirement of an equal amount of bank
notes The government of Great Brit
ain does not issue paper money, and the
notes issued by the Bank of England are
secured upon nearly the same plan as
are notes In this country. The Bank of
England has a permanent but limited
deposit Of national securities against
which 1t Is authorized to issue hank
notes In addition it is authorized to
issue as many bank notes as it has gold
on deposit in its vaults. In this way the
bill-hOlderi is protected atalI times against
loss, and the bank note is always equal
to coin. The nationel bank notes IN this
country are, IN like manner, protected by
a deposit of national bonds or actual
money with the treasury for the redemp-
ton of the notes. After January next
these bank notes viii be re1eemable on
demand in coin or its equivalent. IN
der this system there has never been a
holder Of a national bank bill who hiss
suffered loss from the failure of a ma
tonal bank When specie payment shall
be resumed, our national bank notes will
be as as amply protected against loss by
failures as ara the notes of the Bank of
England Chicago Tribune.