The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1878-10-15
The Vital Grsenback Question,


There is very little use 10 wasting breath
or shedding ink over fiat" money. The
people want a currency that represents a
value, not vacuum, Paper is not money,
and is taken as substitute for money
only when it is understood that solid values
are behind it. The American people
having emerged from the tide of initiation,
which proved nearly as destructive to their
interests as the Red Sea to Pharoah's
army, have not the remotest idea of taking
a second plunge into that treacherous ele-
ment. The real question, the vital point
at issue in the national finances, relates
to the present national banking system,
The paper currency of the country consists
of $347, 100000 Of legal tenders and $780,
100000 of national bank notes. There is
no reason why the country should have
two kinds of paper currency. One kind
will eventually be substituted for the other.
The republicans have shown their prefer
ence by expanding the national bank circu-
lation. They are committed to the national
banks. Their representative orators,
Schurz, Sherman, Blaine, Conkling, and
the lesser lights after them, argue for the
national banks as though they were the
retained attorneys of these profitable and
powerful corporations. The democrats,
on the other hand. with few notable ex-
ceptions alike Senator Bayard, of Della
ware, advocate the modification of the
National Bank act aud the substitution of
greenbacks for national bauk notes. This
is the real greenback question now before
the country.
1t is not question Of imitation, though
republican politicians represent it as such.
No representative democrat proposes t.
add dollar to the volume Of the currency
of the country. The substitution of one
kind of currency for another X nd of equal
value is not imitation, aud it is sheer
misrepresentation to say that it is, Carl
SchurZ, 10 his elaborate speech at Ciuciu-
natl, tried to make powerful point against
the substitution of greenbacks for national
bank notes by representing it as essen
italy an initiation movement; for once
hoist tie gate and there would be nothing
TO paeyent an unlimited issue Of irredeem
able paper. Nothing, Mr.. Schurz,
nothing whatever but the common seEst
common honesty of the American people
The people are not fools. They are capa
BILE of self-government. They can b.
trusted. And iu q democratic government
ike ours they must be trusted, wbethe
MIR. SchurZ likes it or not. Initiation il
Just at possible with the national banks as
without them, if the people lose thei
head sand demand 1t. The experience O
hundred years of democratic self-govern
ment has taught US that the people can b.
trusted, and that it is vastly safer anC
better TO trust the people then corporations
Tho people had no hand 10 the demoueti
cation of silver, which was one of the mos
pernicious and damaging financial acts
ever perpetrated, and were surprised wheI
they learned it had been done. Had TIT
question been submitted to the peopl
they would have voted down the PROPOSE
ton TO reduce silver from money to mer
chaudise By an overwhelming majority
Mr.. Schurz and his republican partner
evidently have no faith 10 the people, ant
the people are fast losing what faith the,
had in them,
Mr.. Schurz makes the strcu rest argu
ment he can in favor OF national banks
They are vastly better than the ole stat
banks they superseded, and he drugs III
the skeleton of those defuuct institution
to show how CHASTITY they we're. But no
body proposes to 60 back to the old stat
banking system. Nobody clamors for ,
deluge of wildcat currency" The who'll
thing is the mere catch OF rhetoriuiau
unworthy the name of argument. Becaus
a age-coach is better than an ox-cart
does not follow that people should no
have q railroad when they can. Dyspep
STA may be very much better than yellow
fever, but that is no reason why peopl
should not be we'll Schurz and Balm
try their best to prejudice the public b,
raising false issues. 1t is not a question
between the old state banking system anC
the national banks, but between nationa
bank notes and q currency issued directl,
by the government and recognized as lega
tender everywhere. The government
gives the national banks special privileges
1t takes their bonds, and gives them tn
privilege of issuing $50 in notes for ever
500 in bonds they deposit 10 the treasury
and it pays them interest on the bonds
while they get what Profit they can OF
their notes. These notes represent debt
yet the banks realize from FIVE 10 twenty
i've per cent, proht on their circulation
Mr.. ScburZ says that but tor this enormou,
subsidy the banks would go out of bust
ness. 1t the banking business is SO nm
profitable that capitalists will not ventur,
into II short OF government subsidy Tx,
THIS, IL Hhu UeNttI Db given up. does thu
government subsidize ship-builders, G.
cabinet makers, or bootblacks to keer
them from giving up their trade? Tn,
people reDndiate the whole subsidy bust
ness in toto, as false in principle and per
nicious in practice. Most of the nationa
banks which have given up their circula
ton keep on as banks, showing that tn,
argument of Schurz is bascless, The rea
objections to the national banking system
that it IL based on special privileges
which are contrary to the genius Of our 10
situations anda sound policy; that it com
bines and concentrates and consolidate
the capitalist interest of the country in
way that is inimical if not dangerous TO tn
general welfare; that Intends toperpetuat,
the national debt; that it does in an indirec
and costly way what the government cal
do directly and without expense; that !
creates monopoly which ought not to b
SUFFERED 70 exist--are eyaded. Mr., Schur
.laa,.o .4. a7t .-s