The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1879-01-11
TIE FINANCIAL QUESTION.

not want gold in exchange for bank
or government notes; but it must not
be assumed by business men that
the financial question is settled. Of
ficials and interested partisans may
so declare, but he who regards the
battle for a sound financial policy as
finally won is sadly deludcd, for the
issues in regard to the volume and
character Of our currency are far
from being decided.
The adjustment Of the currency
question is vital to the thrift of the
Nation, and if it shall be allowed to
drift into the next Presidential con
test, the embarrassment to healthy
progress in business must be meal
eulable. 1t should be settled by the
present session Of Congress, says the
Philadelphia Times, but it will not be
done unless financial circles under
stand that the changed condition of
all the productive industries Of the
country demands material changes in
our currency system,
1t will BE disputed by many but it
is Zone the less true, that if there
ever be q direct issue before the peo-
pie on our present national banking
system, it will be overthrow. Mon
ey circles have little appreciation Of
the causes which operate to make
hostility to our banking system i'm
placable. 1t is assaulted by many in
terests and the opposition is quite too
formidable to be successfully resisted
il the issue should be made. Nearly
the whole South and very strong ell
ement in the West desire to return to
the old State banking system, and it
is peril which should not be under
estimated. Disastrous as it would
be to business and credit, it is one of
the remote possibilities of an issue
with the national banks in political
contest
The prejudice against the payment
Of interest to banks on bonds depos-
tied to secure circulation, is wide
spread and by no means irrational.
1t is not considered that the banks
pay back to the national, state and
municipal treasures in taxes, nearly
or quite as much as they receive on
their deposited bonds, and the banks
suffer in the discussion Of the appar-
ent special privileges they enjoy. 1t
is known to all that while money is so
abundant in great business centres that
it cannot be proGtably employed, it is
scarce and obtainable only at usurious
interest in agricultural, manufactur-
ing and mining communities, and the
banks are made to accept the blows
which should be directed to therevis-
ion of the system and not to its de
struc:ion.
The government grcenback is also
an important factor in the inevitable
issue with the banks. 1t is now
equal to gold and generally preferred
to coin in business transactions. 1t
has served great purpose and serv-
ed it well, and is popular with all
classes. There is universal faith in
the government, and the sentiment
in favor of uniform national curren-
cy, to be used by the government in
its transactions and to be given to
the banks for circulation on deposit
Of bonds, which shall be non-interest-
bearing while so deposited, is strong
err to-day than at any time in the
past. In addition to these consider
ations, the conviction is both general
and just that our present banking
law, while ostensibly Offering flee
banking to the country, is so hedged
about by taxes, limitations and gov
eminent control as to defeat its pro
fessed purpose and limit banking to
where it is least needed to serve the
wants of legitimate business.
It is idle to say that the complaints
against our present national banking
system are groundless. While they
are vastly exaggerated, they are not
without foundation, and the way to
meet the issue is for the banking and
financial interests Of the country to
take the initiative and revise our sys-
tenn to meet the new order of things.
If the banks were to move for the re-
peal Of the onerous tax now imposed
upon them; for the suspension of in
terest on bonds deposited to secure
circulation, and for the removal of all
needless hindrances to legitimate free
banking, the questions of the volume
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