New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-07
LETTERS FROM THE PEOPLE.
THE ARGUMENTS FOR INITIATION.

TIE ARGUMENTS FOR INITIATION.
THE POWER or BANKS TO INITIATE TIE CURRENCY
BY EXCESSIVE DIscoUSTs hssERTED-pHosPER-
Try ACCOMPANIES ovER-GssUEs or MONEY.
To ths Edifor Of Tae Tribune.
SIR: Intiatonists are undoubtedly increas-
ing the West IN proportion as tic hard times increase
They make a distinction between expansion ana In
fatioE, but al the time emphatcay deny the sVn
orally received opinion tina; imitation OF tDc currency
has anything do with imitation OF prices, such as we
lad during war times. They using, among Others
the following argument, statement with no ttie ell
Get and as cannot IT, come TO you for help:
Banks spring UP as The necessities OF trade ana com
mcrce require their assistance. ana deal III CHECKS au
bills Of exchange money OF account TO the extern re-
alrcd by the Of business There Is no Legal sur
against under the present system Of nloS
Of government II l. SAID must Vl NAV .e
mower to issue money, because it IL impossible 10 lit
he volume of the issue definitely, ana hence, 10 prevent
Ovcfssuc. Admitting foT The safe OF the aftuiefn,
ilat this were so why Is the oil elton nor alphed
10 banks discount ard deposit that exercise every
day power to increase the money Oh account %
and drafts which uscd for ne same purpose rs Uana
hottest Why should Tie banks have and exercse tio
power OF OyeT-ssue (by excessive usc0hll1 anu vi!
shcala tho sane people vino show fear at all OF thc
elects Of this oy,r-ssue OF money OF account upon
trad, and pIices. exhibit such cNccssye terror az a
oyers,r 81 payer curlency7 Tie loans ot the United
States during war tunes were nothing less lhah 'n
uvei-i,sue' OF tie worlds money 81 account ~ M'S
tin five million loan Of the French Government nhu ytt
both these "oyer-issues combined nav henier as
urbrd prices nor thrown IN" hAhciai "Di ~ iltv eo
WILSON'S on contrary. bonn oveisslfs or lncic,ss
Of ia my lIOIOrOnateIy hcftaseu ihC PiOsPVA''
Oi the world.
The prosperous times OF "curr infaton ana TIE
snail number OF bankruptcies compared win what We
now have almost daily. - used as an argument TO CON
finn the above. viii be glad II zen can spare Tie 'i'e
and space to answer It. DAVID d. ho"""l''
BrlHer, H., Dee 49, l577.
III seems incredible tEat anybody does not kno"
the difference between Oyer-issue Of representa-
tive currency bG ed upon exchange oi products, ana
legal tender currency, based upon tie crcdt oil the
Government. Nobody is bound to take the credit
cnrrency-check-, drafts md the lke-unleso he
please Eycgl body Is compelled to take the legal
tender currency at par III payment OF debts, ana al
some price in payment for products. Hence, the
latter affects prices more. The banks may Issue
proniec5 as much rs they please, Tong as nobody
is obliged 20 take them az any price II the over
issue is considerable it cofrccts itself Just 80 an
individual may issue hs promises to pay as much as
he plca,,s So long ~ it is left optional with the
people whether they take them not, 10 harm ~
DONE If he issues too many, they stop being taken
very promptly. But an Oyer-is.uc Of legai-iendeIS
by the Government is very different matter
somebody can be compelled to take 1t. There may
be sufficient products exchanged to represent ii. or
there may b, none 1T all; somebody can he COM
YELLED 20 take IT, whether it represents products OF
uo.ltin~-ELl