The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-09-26

the issue OF nOJbb ny Iub NhtlOnhl pehh7
inc associations, without any provision
for a corresponding reduction In the cir,
oulation of United States notes, and still
further by the laws authorizing the issue
of interest. t.bearing securities made ten
der for their excluded interest" There
is no injury in breaking the faith OF the
nation in issuing the 1905, compound
interest notes, and the Lord knows what
all, where of all colors and descriptions,
carved and engraved and designed and
made legal tender, running directly
away from this pretended pledge OF the
public faith that they should never exist
And, again, there is another answer to
this: They say the pledge was made in
order that the greenbaCk might not de-
preciate by over issue, ButifgreenbaCks
can be kept at par with gold and silver,
then surely nobody could be injured.
Now that is precisely the idea in our
platform-iust what it Contemplates--
that they should be at par with gold
and silver Therefore, we do not CON
template any breach Of the public faith
that could be injurious to any holder OF
greenbacks at all, or to any individual. l
think that objection is disposed of.
The next objection to greenbacks may
be formulated thus: A flexible currency
is necessary, and bank notes are neces-
sary to give fexibility to the currency;
80 you must not substitute greenbacks
for National bank notes, because Nation
al bank note currency is flexible cur
renCy, and flexible currency is necessary.
What do you mean by "Aexible" cur.
renCy2 Why, they mean what our old
Governor, Gen. Joseph Vance, used to
say, that currency ought to be capable
of contraction to-day and of expansion
tomorrow. Laughter. And l think
Sam. Medary won good share OF his
editorial fame by ridiCuling the Cover
nor for his contraction to-day and ex'
panRion tomorrow"
The argument applied here would be,
if the Government should use the green
backs, then there will be time when
there will be just the same amount out,
and there will be time when they ought
to have more, and another time when
they ought to have less out, but the Gov
ernment issuing it, there will be exactly
the same amount out.
Well, would not that be 30 if all our
currency were hard money? But there
is better answer than that, and that is,
that, while under the old banking sys-
tenn, when banks were unrestricted in
the amount of their issues, there could be
that fexibility, and the history of this
country is marked with the ruin and dis.
aster that resulted it, While that is the
case, there can not be under this Nation
al banking system that volume, because
the amount of the National bank notes
is fixed at definite amount, not fixed
in the way of amount, but by positive
law they can only have ninety dollars of
circulation for every hundred dollars of
bonds they deposit, and the only way
they can increase their circulation is by
depositing more bonds, and they can re-
tire their circulation by settling up, and
thus they can increase or diminish their
circulation. But practically they do not do
it. They have surrendered a considera.
BILE amount of their circulation. Why2
Because they dreaded the Resumption
Act. They would not have surrendered
at all otherwise. They surrendered be-
cause it was not profitable. Institutions
that had been paying from ten to twenty
per cent dividends and laying up con-
siderable surplus besides.
They did not think Of surrendering
their circulation until they saw resump-
ton coming, then they began surrender
ing their circulation, and to hoard green
backs, that they might prepare for the
day of Judgment. Laughter and ap-
plause.
The next objection to the greenbaCks
may be stated thus: bank notes represent
vaI,teS; qreenbdCks do not. And that is the
great point that is made in little book
lately published by Mr.. Poor, of New
York, an advocate Of National banks,
and who speaks the sentiments OF Ma
tional bank advocates. He does not pay
much attention to those other things the
lesser lights have dwelt upon, but does
to this point, that the National bank
notes represent values, and greenbaCks
do not. And hence he argues that green
backs can not answer the purposes Of a
currency.
Now, that means about this: that the
banks have assets to redeem their notes.
They represent values-that is, they rep
resent all the property belonging to the
banks of all kinds-they represent bills
receivable by the bank, its banking
house, its gold and silver and such things
And greenbacks do not, On that rests
the assumption that there are no assets to
redeem the greenbacks, but the assump-
ton is not true. The Government has
the whole wealth Of the country to draw
upon for the redemption of the green
back, and when the condition of the
country shall be such that the banks can
maintain specie payment, 80 can the
Government. I defy any man to show
me why it would be particle more diff.
fiCult for the Government to retain spe.
Gle payment if the country is in Condi-
ton to allow it than for the banks to do
it. That is-supposing the currency
the paper money-was bank notes, and
that the banks could maintain specie
payment, and if that was by withdraw
ing an equal amount of greenbacks it
would be just as easy for the Government
to maintain specie payment-in fact, it
would be easier for the Government to
maintain specie payment than for the
bank. So that whenever they have a
desire to maintain specie payment, and
specie payments shall be maintained, it
will be found in fact easier for it to main
tain convertibility of its greenbaCk cur.
rency than banks, if they had specie to
maintain it. That disposes, 1 think, of
that objection, or ought to.
And then how inconsistent these gen.
tlemen are. Here is Secretary Sherman
Ii understand his speech, once made in
the Senate, and his conference with the
finance committee and the banking and
currency committee of the House at the
last session, and his speech at Toledo--if
understood him, he is in favor of keep.
ing out $S0O,000000 of greenbacks per-
manently. Well, now l want to know
of my Republican friends who are speak.
ing against and worshipping Mr.. Sher-
man at the same time-tell me how it is,
if it is unconstitutional to give greenbacks