Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1879-09-25
Carl Schurz Philosophy.

Carl Schurl says there are sufficient rca-
sons why greenbacks should not be substl-
tuted for national currency, among which
are:
"The amount of paper currency for the
redemption of which with coin, the govern
ment is directly responsible, will be
doubled. Instead of being responsible
for the redemption Of about $346, 1000
Of paper, it will be responsible for the re-
demption of 1876, 900, 900, and it will be
proportionately more difficult TO maintain
specie payments"
There can be no increased difficulty in
maintaining the present kind of specie
"N"ments, substituting United Stf es
l., es for national currency, nor need , le
c. reserves be increased dollar. In
&c first place the government is now re-
sponsible for the redemption of every
bank note, but such redemption is made
legal in greenbacks. Substitute new
series of United States notes for bank
currency, AZ make them rcdeemable in
just what bank currency is now redeem
able in, and thel thing is accomplished
without additional cost or difficulty.
az Illc Htlllc Jlllc, pcEi'tdlJ ilNuulH IN
in favor of substituting national bank cur
rency for the $346,000,0O0 of greenbacks
now in circulation, but fails TO inform the
public whether he would contract the
paper volume to accommodate it TO tho
present coin reserve available, or / Il the
banks to the extraordinary, if not impos-
siblc, task of supplying a prOportionatc
additional reserve.
Another reason given by Mr.. Schurz
why grecnbacks should not be substituted
for the n.,tic lal bank circulation, is that
the government would lose the one per
cent tax now paid by the banks on their
circulation. Shades Of the interior de-
partment protect us!
This is an argument as potent rs that
used by the Kentucky clerk in the treas
ury department during the war, who re-
fused an additional 500 TO his yearly sal
ary, because the extra 800 over his pres
ent salary word be liabls to a five per
cent income tlx, which he didn't feel able
to pay.
The government would certainly have
the full benefit of the volume of money
Issued to take the place of the bank notes,
II a " NlllCI IL lNlll Ntll ullb. l W lpSt lll'
pi,tance Of Mat FRI 3tiOn Of one per cent in
exc -s'of u . cost of supplying the bank
GU ency.
Not only this, but for years Schurz a. |
his political oo-workers have labored zeal.
Ously n repeal of this tax, and even
the comptroller OF the currency advi
the banks to persist In their efforts
they succeed.
If the government should give the banks
the new issue of grecnbacks in exchange
for the )nds held as a banking basis, the
government would save 100000 sf in
terest annually, against a loss Of tax on
circulation not to exceed S3,O0O,000.
Another reason given is that the abol.
ishment Of national bank issues would re-
vive the old wild cat state bank system.
This is equally fallacious, for it could be
prevented either by taxation as now, or
forbidden by legislation. In fact such
state issues could not sustain themselves
by the side of United States legal ten
ders.
So far as intelligent men are concerned,
they care no more for the redemption Of
greenbacks in gold than they do for the
redemption of gold or iron in greenbacks.
They pesire sufficient volume Of legal
tenders to give just and proper values to
labor and commodities, and then to hr e
the volume under the control OF the gov
crnment to be regulated 20 as 10 maintain
steady and uniform prices, without fear or
danger of financial revulsions by the ex-
portstlon OF specie nr the decline in its
production.