New-York tribune., 1878-05-11
THE B1NKS AND THE VEST.

THE B1NhS And IHE EoI'
Blind men do not make good fighters. The
capital of this country, and especially OF the
East, loses ground in It's struggle Tor sell
nre:cryation, because it cannot see, or OBJ
stinately refuses to see, where It's adversary
means to strike. Sensible men say, lth
"gold at par, the money question Is as dead rs
"JulIus Cesar Those VINO once feared 1ail
of prices have no reason to fear any longer
"aud the infatOnist knows that all the paper
"curreDcy required by the wants OF trade or
"otherwise can now be had because banks can
abe multiplied and circulation increased at
"pleasure" This is as if IA prIze-iighter should
resolutely shut his eyes in order not to see a
coming blow. To men not wilfully blind, the
platform of the Pennsylvania Convention
ought to bring n warning.
The East has not yet begun to understand
the intense hostility toward the national
banks which prevails at the West. The
causes are many. Perhaps the greatest is the
notion that the banks get double interest on
their capital create IA monopoly III money,
and fix high rate of interest for borrowers.
Farmers wonder why banks do not loan on
farms, on make long loans to carry producers
over a bad season. or lend on grain TO enable
the holder TO wait for high prices. Men OF
doubtful credit are angry because they can
not borrow. " Horny-handcd sons OF toll
suppose that the banker gets rich by doing
nothing. All sorts of prcjudices combine
The world over, in all ages. the money
lender is hated. called IA Shylock, hunted
alike by despots and the mob. Every dollar
that the thrifty man has saved, and can lend
is keen rcprOach to the unthriity, WHO has
spent, and is forced to borrow.
This hatred of the banker causes men to
demand the substitution of government
money" for bank notes. 1t is said, very
pllusibly, "The bank note is good for moth
"ing except as the representative OF United
States bonds deposited 10 secure IT. Why
"shoud the bank get interest on its capital
"irom The Government, and then have leave
"to lend the credit of the Government, and
"get interest on that?' Any intelligent man
can answer, but that does no good; the
millions who attack the bank system rarely
listen aud never comprehend Down with
"thc banks Government money instead Is
a cry which will rally Il great many votes.
Bnt the money issued by Government can be
limited in volume by Government. lhat VIII
not do for the debtor, the borrower and the
impccmioUs bankrupt; there must be money
enough TO meet ",the wants OF trade" Hence
the demand for the 81 free lcgal-tcndcr.' And
il must pay all debts, also, or If would not
serve to strike those other much hated per-
sons, the bondholders. Thus we reach the
demand for abolition of bank notes, and issue
hv Government of a " tree and full legal
"tcndcr"-an unlimited and iIrcdcemablc
paper which every creditor shall be forced to
tikc
1t is a mistake to suppose that these notions
have not gained deep root. Any public man
who rcs,ts them has a hard time of il at the
West. In Pennsylvania, also. they have
shown great strength; in some parts OF this
State and Massachusetts, and in one district
ol Connecticut, they have gained enough
voters to command an apparent majority. To
limit the lcgal-tcnders and suffer the bank cir
culat0n 10 expand, these men think, Is to ul-
timatcly extingush the legal-tendcr except as
a reserve for banks and give TO the dreaded
"bank MONOPOLY entire control over the
currency. Absurd as these ideas are, they have
all the power of absolute conviction over the
minds of millions of voters.
The consequence i, that the money question
will not die, even when grcenback, are freely
exchanged for gold. Sull there will he the
feeling that the only part of the currency that
can expand is that which, by expansion.
brings larger profits 10 ga privileged class. "
SIN there will be the demand that The Gov
eminent issue shall be increased without limit,
in order to crowd the bank notes out Of use,
and in the hope that excessive issues may yet
arrest redemption, cause rapid depreciation,
and bless the debtor and gambler with an
other fictitious rise of prices.
This is the real situation. The remedies
chiefly urged arc mere quack medicines. IL
would do no good to retire all the legIl-tend-
crs, could that be done, for that would only
open the way for the issue of "absolutc
"moncy full lcgal-tcndcr paper, not prom
ises TO pay anything but "based on the
faith and resources OF the nation" More
over, in any attempt to force the lcgal-tcud-
crs out Of use, the struggle between the bank
note and the Government note would be
ended by an overwhelming majority against
the bank note, in the present state OF popular
Intelligence. We shall have this ugly Ques-
ton to meet so long as the public education
is neglected by dodging party managers. The
right thing, and the only wise thing to do, is
TO make the question a direct and controlling
issue in politics, force its discussion III every
part of the country, and thus prepare public
opinion to discard forever the noxiOus. false
beliefs begotten of ignorance and a Commun-
i5tic spirit
THE DEu1GOGUIS or IUO CIPIIALS.