The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-10-28

II has been quite the fashion OF the demo-
supposed that any moneyed institution is subject
to popular outcry. II has been proposed by the
democratic party that this system shall be super
seeded by new Issue of United States notes. in
violation of the law of 1864. and the whole basis
upon which this measure proposed is that 1t VIII
the people OF the United States the interest on
the circulating notes so issued. Even on the narrow
ground of interest. such measure would be an i'm
mediate loss, for the taxes levied upon the
banks by State and National authority are now
greater by several millions than the entire
interest at -FOUR per cent on all the nanA notes a.
culaton. The destruction of the banks would DO
the loss of this tax. The United States bonds, de-
posted security for the notes. are now IN elect
taxable capital stock of the bank, but wouid not
be taxable in the hands of private parties; a'u
thus. by the destruction OF the banks, nearly
all the capital employed i'll them would as
sumo form. in the hands of private pSriies.
hey nd the reach of taxation. In this city alone tho
taxes on national banks amount to s2.s32. 9Sl AZ.
while four per cent interest on their crcuiating
notes ia $685. Ia 96. Abolish the BANKS anu .ne
S25 745 500 United States bonds held by them ana
forminn the body their capital stock now taxable
will cease TO be taxable whether held by private per-
sons or corporations This deficit III your likes
would have TO DO made up ny lakes oa o'nef piop-
erty. -. -, 4. .,, ,o...
Of several objections the abolition of the national
banks. They are interviewer Win al ne eouiner,
cjai business OF the country, and their loans aud
discounts form our most active ana uiseiu capital.
and tho collection of which would create the
most wde-reachng distress. Again, the abo-
iilion OF the national banks would newt.
ably lead to the incorporation of State
banks especially in bankrupt States, whore
any expeaient to make paper money cheap win
be quickly resorted to- and thus we will encounter
again all the innumerSbie difficulties CT exchange
and business which existed before the under the
system of State banks Again. it will open the
question OF the repeal of the provisions OF the loan
laws fixing limit to the amount OF United States
notes. ana thus Will shock the public credit and raise
new questions of authority which the Supreme
Court would probably declare TO be unconstitutional
Free banking open to all, with prompt and easy
wants Of different periods and seasons. Who would
risk such question to the changing votes OF Con-
gross? will not disparage your intelligence by the
discussion OF propositions gravely made during
this canvass, that seem to border on lunacy.
They were all based upon theclaim that Congress
had the power to, and ought to, issue paper money
without regard to the limits fixed by law, with
out regard redemption, anu based entirely
upon what they cali the wants of business. With
high opinion OF the general intelligence OF Congress,
1 do not believe they have such a power nor ought
it to be conferred upon them The present volume
and their and reissue has been upheld by the
Supreme Court We have had weary struggle to
bring them to the standard OF coin There let us
rest. 1, for one, AN i'll favor OF maintaining
them in circulation, supported by an ample
reserve in CON- but am equally IN FAVOR OF
allowing all other paper money to be issued by cor
porations under law tree and open to all so that
tho business of banking will be like any other bust
ness private life II experience shows that the
existing is subject to abuse, then Congress can
readily by general law, RESTRAIN chem, even to the
extent of tax equal to any portion OF the interest
on the bonds held as security for their circulating
notes. But the general principles OF the system or
national banks cannot be greatly improved. They
FORM convenient currency. unrivalled in excellence
by any banking system heretofore devised.
SILVER COINAGE.
Another subject OF embarrassment pressed upon
Congress during the preparation for resumption
the free coinage OF silver. l believe wlth Hamilton
silver the policy of the government, but the
essential prerequisite of free conaseis that the coin
ratio shall be near as practicable equal to the
market value of the two metals at the time of
coinage. This was tho rule adopted ut the be-
ginning of the government. when the coinage
vrns NeI
market ratio that is, that fifteen ounces OF silver
were equal to one ounce OF gold. subsequently,
when the price OF silver had somewhat fallen, and
when gold had become practically demonetiZed, the
changed to sixteen ounces of silver to
ounce gold And now, it the market value OF six
teen silver were equal to one ounce OF gold
there would be little If eny, objection to tho tree
coinage OF silver put ny series si events not ne
cessary to state, 4l2s grains of standard silver are
only equal to eighty-eight cents i'll gold, and
therefore. free coinage of silver now would necessa
rily demonetze gold and thus reduce us to the silver
standard To this am utterly opposed. What,
then does public policy clearly require? Either.
first that upon the present ratio the coinage shall
be limited to an amount OF silver coin that
can be maintained by its necessary use ut
with gold without respect to its market
value; or, second, that, by an arrangement with
commercial nations ratio between the two
metals may be fixed ut which all nations will receive
and coin both gold and silver or, third. to put In
the silver dollar enough silver make 1T equal to
the gold dollar. The gold dollar OF 258 grains has
been the standard coin of this country for forty
years. and it would be act OF insane folly to
change that standard to meet the demagogism OF
the hour. France. though it has suspended the
coiuing Of silver, is now greatly embarrassed by
having the vaults OF the Bank of France than
half its coin in silver coin and We should not
foolshly involve ourselves in the same embarrass-
ment. We should issue no dollar that is not equal
TO the gold standard. or, we do, 1t should be- re-
deemed in the gold dollar whenever demanded. The
interest of laborng above all others. is to have
fixed standard OF value Tor the rich and the poor.
for the bondholder and the noteholder; to have
no money i'll circulation except that which
Is good coin; TO make distinction
between moneys. but TO maintain all ut the same
purchasing power. We now, under tho law, arc
co ming two million silver dollars month. OF
these, ST., 100000 are in circulation and $50 O5275O
are in the Treasury. 1t is manifest that we have
already reached the limit to which this coinage
should be carried. The popular opinion is SO en-
lghtened this subject that trust the danger
that threatened US year ago has passed away with
the triumphant success OF resumption.
Upon both the silver and banking questions the
great effort of democratic party to be to
lind some financial fsllacy upon which they
gain vosss, cheat and nslead the people 1t is the
distinguishing feature between the two great parties
OF this country that the republican party has for
the last twenty-five years boldly and openly taken
its position defined its ground. sometimes with tho
certainty immediate defeat, but always with the
frmness and caution proper for great party and
in every case it mas boldly and manfuily stood by
its position and accomplished tie result aimed
ut. The democratic party, on the other hand,
before the war the servile tool OF the
slave power of the SOUTH during the war it was in
position of opposition to the government i'll sup
pressing the rebellion, and has since blindly CROPPED
after issue of demagogsm until latterly it has
attached itself as barnacle to the sold South.
When the republican party assumed the burden OF
the resulnptioSot specie pay ments the democratic
party instead adhering to its cherished principles
In favor hard money, allied itself to every plan of
initiation, and now torn aud rent with dissensions.
becomes the nope and bulwark of the Southern
States in their effort 10 nullfy the constitution and
laws of the United States.
There more important questions press
ing upon us, affecting higher interests than gold
silver land property. They affect the very foun
dations OF our republican institutions. Upon these
the republican party has taken its firm
position. We have III every republican plat
form during the present year announced
our fixed purpose-Eirst. TO secure to every
lawful voter OF the United States the oppor-
tuuty at every national election to cast honest
vote and no more. Second that the laws OF the
United States, passed in pursuance OF the constitu
ton OF the United States shall be enforced every
part of the United States wherever flag right
fully floats, despite the opposition OF nobs or rifle
clubs, cities States despite all prejudice, caste
or party aud that in this way national supremacy
in national shall be asserted and maintained
with all the moral and physical force Of the people
OF the United States.