The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1878-09-26

pau with cain, while he favors an
amount of paper issued directly by the
Government, not convertible into coin,
with no provision for it's redemption,
and to an amount that no one has
claimed can be maintained at par with
coin.
He says it is just as easy to maintain
$C&S j09a,o00 .greenbacks at par With
coin as it lis to maintain $346, 100000
greenbacks and >$322,O0O,OOO national
bank notes at par with coin.
BANK NOTES PAYABLE IN GREENACKS,
NOT IN COIN.
But he forgets to state that the bank
notes aEepayable in greenbacks and not
i'll coin, and that they are to be re-
deemed by the banks at their risk and
expense, and not by the United States.
No coin leserve is needed by them for
such redemption. The issue of these
notes aids i'll maintaining the United
States Notes at par with coin instead
OF obstEucting it.
The banks are required to keep in
their vaults and in the Treasury of the
United States an ample reserve of
UnitedsA4tast ates notes to redeem their
notes, and thus gives to the United
States NOTES "a use which tends to main.
tain them at par with coin. The whole
burden NOW resting upon the Govern
ment is to maintain resumption upon
the amoalnt OF United States Aotes, and
this confessedly can be done by a coin
reserve of from 80 to 40 per cent,
which We have on hand, while, if the
whole amount of circulation was in
United States notes, no coin reserve
that could he reasonably secured and
maintained would be sufficient for the
purpose of redemption.
Bank NOTES NOT GOVERNMENT NOTES.
The bank notes are not in any sense
the notes Of the Government They
are the notes of private corporations
amaly secured. redeemed by them,
maintained by theln, or, if they fail to
redeem them, the security can at once
be applied to their redemption. This
expedient of allowing a portion of the
circulation to be used by private cor
poraMens enables as to maintain in
circulation nearly twice as much paper
moneysas could be maintained at par
in coin If issued directly by the Gov
eminent.
WHY TJEURMAN'S PLAN rs WRONG.
His plan would diGeetly violate the
provisions Of the Loan Laws, undar
which both Uuited States bonds and
notes are issued, and which limit ex-
pressly the amount of United Statesl
notes to $4a0, 100000. This would bel
a violation OF the public faith, and
would at ONCE impair the public credit,
and do incOlaeeivably moEe harm than
it could give profit to the Government.
This scheme of his encounters direct
ly the decision of the Supreme Court
of the United States, and would no
doubt be held unconstitutional be-
cause it provides for a very large in
crease Of United States notes lin time
Of profound peace. where no sach ex-
igency as is contemplated by the con-
stitutiOn or decision of the Supreme
Court exists to justify such an issue.
THE INEVITABLE EFFECTS OF THUR
MANS POLICY.
= It would at once drive out of exist
ence the whole system of national
banks, which have been the means
alone by which State banks have been
prevented from issuing circulating
notes. The only franchise the nation
al banks receive from, the Government
" hich induces them to maintain their
corporate existence is the right, fixed
by law, to issue circulating notes. Take
this from them and they would at once
cease, without exception, to be nation
al banks, and would be organized again,
as before the war, into State banks,
with such power as any State might
give them. The inevitable effect of
this policy would be to revive again
the system Of State banks without any
organization, without any Sc
,urity for their notes, upon such terms
IS any State might prescribe, and thus
Ill the evils of State bank money,