Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-08-23
currency for the redemption of which with
coin the government is directly responsible,
will be about doubled. He proceeded:

coin the government is directly responsible,
will be about doubled. He proceeded:
At present the government ia directly respon-
sible for $346, $40, 900 Of greenbacks. Then it
will be responsible for $685. 100000 green
backs substituted for national bank notes in
addition-in all about $676, SIC, 900 for govern
ment paper money. How will this affect the
maintenance of specie payments? The amount
of paper currency directly redeemable by the
government being doubled, the amount Of coin
reserve held in the treasury to secure redemp-
ton must be largely increased, also. l think
that in this instance it would have to be more
than doubled. Why? The amount of coin
reserve to be held by a government or a bank
for the redemption of its paper circulation, 80
as to keep that currency up to par with coin,
depends in great measure upon the confidence
OF the public. not only in the ability, but also
in the good faith, of that government or bank
as to the redemption of the paper currency.
When that confidence is perfect there is COM
Daratively little danger of those alarms which
produce runs for the conversion of paper cur
rency into coin.
This is the sheerest nonsense, and we are
surprised that Mr.. Schurz should have been
guilty of promulgating SO gross and unreas-
enable theory. 10 assert that the present
par value of the currency of the country is due
to the coin reserve held in the treasury, is q
palpable absurdity. The reserve is less than
thirty per cent. of the currency outstanding
and if there should be run on the treasury
tomorrow, the government would be forced
into bankruptcy. 1t is the confidence of the
people in the permanency and stability of the
government, that gives value to its promises
to pay. Else, how comes it that the ST.
SOO,0OO,0OO of bonds outstanding, for the
payment of which there is no reserve at all,
are selling in the markets of the world above
par? There is not the slightest probability
of the redemption of those bonds when they
become due, except by following Micawber's
plan of paying his debts taking up one I.
O. U. by issuing another-yet capitalists all
over the world are grumbling because they
can't get enough of them. Their value, evil
IDENTIFY, doesn't depend upon reserve for
their payment, but wholly upon public conf
dence in the permanency of the government
and it's ability to meet the demands for in
terest as they arise. If there was no more
gold in the treasury than enough to supply
the demands for foreign trade, the green
backs would be worth az much as they are
to- day. Paper money is preferred by bust
ness men generally to gold, and uniformity
in that currency is a necessary element of
it's stability and the confidence of the pub
lie. This uniformity can only be obtained
by the retire ment of the national bank notes
and the substitution of greenbacks in their
| stead. This may be effected gradually, and
need create no disturbance of trade. Nc
such specious pleas as that of Schurz will
induce change in the determination of the
people to effect this reform. It meets the
approval of great majority of the people Of
both parties, and will continue to be lead.
ing issue until Congress shall elect to enact
the entire abolition of banks of issue an6
make tho government alone the guarantor Of
| all money of whatever nature emp loved ir
trade.