The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1879-11-07
Friday, November 7. 1879.
Financial.

The Republicans are beginning to
clamor for the retiring of the $346. 100000
legal tenders now in circulation. because,
as they claim, the resumption Of specie
payments is uncertain of continuance so
long as they remain in circulation, When
a Democratic congress insisted that these
legal tenders should not be retired, but
should Be re-issued. the Republicans tried
to defeat the measure, and would have
succeeded but for the determined opposi-
ton of the Democrats. Emboldened by
the successes in Ohio and elsewhere, the
staTwarts now come out boldly for the re-
tirement of the legal tenders and the sub
stitution therefor of national bank notes,
The issue of national bank notes has in-
creased materially 10 the past few months
owing to the increased demand for cir
culating medium. John Sherman, although
positively instructed to keep the legal
tenders afoat. has not done so except when
compelled By actual demand, and even
then his course has been that OF one who
obeys not willingly, but reluctantly, the
edict of congress. Resumption to-day,
nearly a year after the PRONUNCIATION OF
its operation, is but partial-iodeed, out
side of New York, there lis little evidence
of specie payments. except perhaps IN the
increased number of silver dollars and
lessening of greenback currency. The
retiring of greenbacks altogether and the
substitution therefor of national bank
currency should be opposed by Democrats
as against the spirit of the law, and as
tending to centralize monetary matters in
the hands Of monetary ring to be con-
trolled by few corporations for the bene-
lit of the corporators, There is no doubt
perhaps, that ultimately the paper curren-
cy of the country will be retired and full
return to specie payment will come, but it
must be gradual-not sudden. Retro
eression at this time would be dangerous
to the business interests of the country, and
for that reason, it would be unwise to undo
the work of resumption which Demo-
cratic congress has already accomplished
By the reconciliation of silver aud the
law com peiling the keeping in circulation
$346, 900. 600 of legal tenders, There should
be no retrogression in monetary matters.
But while this is true, it is equally impor-
tant that conservative financial policy be
adopted as safest, and as the best means OF
perpetuating the good times which all
earnestly hope will come to every
branch of trade. The maintenance of a
bi-metaiic standard is necessary essen
tial to resumption and should be upheld
By all who desire steady unhuctuatine
currency. The wild imitation schemes oil
the g-eenbackers have been so efectually
is fair to presume that there will be little
If any, progress made in the direction of an
Increased paper currency. This is source
of congratulation and will materially aid
in maintaining our monetary affairs on G
firm pnfuctuating basis. But while in
flation would be fraught with disaster tc
commercial interests, undue contraction
would be equally ruinous to the business
of the country. A sound currency, based
on a metallic valuation, interchangeable
with coin at the option of the holder is
the only safe paper currency, and even with
this safeguard against paper depreciation,
the paper money of the country should be
regulated according to the business re-
quirements; neither in excess of or below
the actual wants of trade. Anything less
than this would be dangerous to the best
interests of the people. The paper money
should he U. s. money and not national
bank money. To encourage the exclusive
right to issue paper money to national
banks would be to encourage tie formation
of a moueyed monopoly the force of which
would be hard to break, if once establish.
ed as the Republican party now seeks to
have it established. It is unwise. upjus,
it is un-democratic.
The State Debt.