The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1879-12-13
The Legal Tenders i.

Inc state hegeStcf, one OF the aDlesC
papers in Illinois, is in favor of Senator
Bayard's bill to take from the greenback
its legal tender quality. The Register is
ably edited and its opinions are entitled to
respect. We have frequently had occa-
sion to applaud its action in the past, and
on the general financial policy of the
country have stood with the Register for
honest money. In its advocacy of Bay
ards bill. however, we differ with our
contemporary. because we believe the best
interests of the country demand retent
ton of the greenback in It's present status.
The government requires collateral secur-
ity from national banks for their circula-
ton. That security is government bonds
and these bonds bear interest, consequent
ly the government is paying national
banks premium on collateral. In ordi-
nary business this would be considered an
unusual transaction. The greenback, so
long as it's circulation is limited, and it is
convertible into coin at the option of the
holder, is the best paper currency we
can have. In proof of this note the quo.
tation in New York to-day, and legal ten
ders are at a premium. Ii the United
States can issue paper currency, which
SO successfully retains its legal tender
quality, why not let the government issue
its own money, stop the national bank cir
eulation, and save paying interest on its
collateral? The Register is sound when
it says ''the only honest money
is gold and silver"-but the fact still
remains that for circulating medium
greenbacks, backed by the faith of the
government to redeem in coin at the option
OF the holder, are preferable for ordinary
business uses, if tho volume is limited, to
the actual wants of the business of tho
country.
Some writers have claimed that money
is plenty-forming their ideas. no doubt,
from the treasury reports showing large
surplus of coin, but this appears to be
untrue for Comptroller Knox, in his annual
report says:
st is probable that at no time since the
date of suspension has so large an amount
of currency been needed for the legitimate
purposes of business as during the present
year. The harvests have been unprece-
deutedly large, while the value of agricul-
tural products. owing to the short crops of
other nations and the consequent
demand for our products abroad, has
greatly increased. There has also been
rise in wages, in the value of manufactured
goods, in provisions, and in the prices of
iron and other commodities.
The business interests of the country
require at this, time circulating medium
of legal tender quality, interchangea
with gold and silver, and certainly no bet
ter paper currency can be devised than
our present greeDback. So far as the
gold and silver in the treasury is concern
ed, there is no reason to fear any disastrous
results, for it cannot be a great while be-
fore the coin, now coming TO the United
States SO abundantly. must find an outlet
10 payment of heavy purchases of foreign
wares, which will force out of the country
a fair proportion of the gold and silver
now in the treasury vaults. This would
cause contraction in the volume of currency
and require very large proportion of our
greenbacks in circulation to meet the de-
mands oftrade. 1t would therefore seem to
be the best policy for the present. or at least
until time has demonstrated the safer
course to pursue, to leave the currency
alone, and above all things the greenback
should retain its legal tender status until
events suggest a change. Any attemp'
however to unduly initiate the currency by
the issuance of Eon-convertible greenbacks,
should be earnestly opposed as dangerous
TO the best interests of the people. With
gold and silver as the recognized currency
and an interchangeable greenback as a CO.
circulating medium there is no reason to
fear commercial disaster. But to degrade
the greenback would force it's extinction,
and pertetuate the national banking sys-
tenn. which is antagonistic to the people,
undemocratic and centralizing, and must
if continued, eventuate in the formation
OF financial power able to defy
private capital and reserve to itself mon
opoly of the financial transactions of the
country-defying even governmental au-
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