The patron of husbandry. (Columbus, Miss.) 1875-1883, 1879-12-20
NATIONAL BANK NOTES AND
RESUMPTION. 81

The administration organs are rallying
with alacrity to the support of Secretary
Sherman's new scheme to contract the
currency by retiring the greenbacks from
ClTCuidtIoH he SIHCIIIHdII OaACIrC,
whose editor holds very close personal re-
lations with the administration, is out in an
editorial in which it argues that the bank
circulation is better than the gieenbacks,
because the government must keep re-
serve of coin against the greenbacks,
which it does not now have to keep
against the bank notes. The Gazette ar
CUES further that, 'sif the currency out
standing on the first of November had
been all in greenbacks, the amount would
be S693, 3o2,434. This would be either
payable in coin on demand, or it would
be a repudiated and dishonored public
debt In the first case there could be no
general confidence that the treasury could
redeem on demand, unless it had a large
reserve of coin, and in such circumstances,
with SO large an amount liable to become
peremptory demand, no man can say
that any reserve would be sufficient to
give entire confidence short of nearly an
equal amount, such as the banks of Eng
land and France keep. A government
currency" it says, against which the
treasury must keep reserve in coin, large
enough to make it safe against any prob
able contingency of run, would not be
a profitable contingency for the govern
ment. On the other hand, no government
that had $6oo,ooo,ooo, or 500, 100000, of
irredeemable currency notes outstanding,
hoated by fiat, practically repudiated,
could have high credit for its bonds or
could convert its loans at reduced inter
est" In conclusion, the Gazette advo-
Gates gradual destruction of the green
back currency "as a brake upon wild
speculation and initiation of the cost of
production which weakens industry"
The Gazette has voiced the wish and
intention of Secretary Sherman, and we
may expect very shortly to see the Re-
publican press fall into line with this
latest development of the Republican sys
tenn of finance. 1t really seems as though
the Republican financiers and the Repub-
lican party were afraid that the people of
this country would enjoy a little prosper
| ity.
| There do not seem to be but two reas-
| ons for the advocacy of contraction at
this time by the cancellation of green
backs; first to keep alive the financial dis
cussion for Secretary Sherman's own
personal benefit, and, second, from a
wholesome realization of the rotten foun-
| dation upon which his boosted resump-
| ton of specie payments rests. 1t is hardly
possible that the first reason can be the
real motive for the secretary's action. Not
that Secretary Sherman would have any
scruples against precipitating the country
| into another season of distress if his own
personal fortunes could be advanced
thereby, but because the secretary is suffi
GENTLY shrewd to see that an attempt to
destroy the greenback circulation and
contract the currency is almost sure to
unite the Democracy party on the only
question upon which it has been seriously
divided, to-wit, upon the question of fl
nance.
4 The real meaning of this new financial
! move on the part of Secretary Sherman
and the Republican party is that they re
alize full well that specie payments, as i
now exists in this country, is sham ane
delusion, and that with single season