The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1879-09-25
Poor Reasons.

ChaFl Schurz says there are sufficient sea
sons why greenbacks should not be substi-
tuted for national currency, among which
are:
"The amount Of paper currency for the
redemption of which with coin, the gov.
eminent is directly responsible. will be
about double. Insted Of being responsible
for the redemption Of about $346, ,600, 900
Of paper. il will Be responsible for the re-
dsmption Of S676, 100000. and it will be
proportionssely more difficult to MAINTAIN
specie payments"
There can be no increased difficulty In
maintaining the present Kind of sbecie pay.
msnts, BY substituting United States notes
for national currency, nor need the coin
reserves OF increased dollar. In the first
place the government is now responsible
for the redemption of every bank note, but
such redemption is made legal in green
backs. Substitute new series Of United
States notes for bank currency, and make
them redesmable in just what bank cur.
rency is now redeemable in, and the thing
is accomplished without additional cost or
difficulty.
Al the same time, Secretary Schurz 10 in
favor Of subssituting national bank curren-
cy for the $346, ,O00, 900 Of grssnbscks now
in circulation, bus fails 70 inform the pub
lie whether he would contract ths paper
volume to accommodate 10 70 the present.
coin reserve available, OF pus the banks TO
the extraordinary, IL not impossible task
Of supplying . psoportionats additional
reserve.
Another reason given by Mr.. Schurz
Why ereenbscks should not be substituted
for the national bank circulation, 10 that
the government would lose the one per
cent. tax nov paid BY the banks on ithsiI
circulation. Shades Of the interor depart.
msnt, protect usl
used by the Kentucky clerk in the treasury
department during the war. who refused
an additional 5000 to his yearly salary, b.
cause the extra 5000 over his present sal.
ary would be liable to a Eve per cent in
come tax, which he didnt feel able to pay
The government would certainly have
the full benefit of the valume of money
issued 70 take the place of the bank notes,
for which il could we'll afford to lose the
pittsnce OF that fraction of one per cent
in excess 70 the cost Of supplying the bank
currency.
Not only this, but for years Schurz and
his political co-worksFs have isbored zeal.
ously for . repeal Of this tax, and even
the comptroller of the currency advises
the banks 70 persist In their efforts till
they succeed.
II the government should give the banks
the new issue of grsenbscks in exchange
for the bonds held as banking basis, the
government would save $ls, ,e00. 900 of in
tesest annually. against loss of tax on cir
culation not 70 exceed $3,0O0,O00.
Another reason given il that the abolish
ment of nation al bank issues would revive
the old wild cat state bank system. This
is equa ly fallacious, for il could be pre-
vented either By taxation IS now, or for
hidden BY lsgislstion. In fact such state
Issues could not sustain themselves BY the
side Of United State legal tender.
So far as intelligent men are concerned
they care no more for the redemption OF
Rresnbscks In gold than they do for the
redemption Of gold or iron in greenbachs.
They desire sufficient volume of legal
tender 70 give just and proper values 10
labor and oommodies, and then to have
the volume under the control Of the gov.
eTnmeni to be regulated 30 a. to MAINTAIN
steady and uniform prices, without feas OF
danger Of financial revulsions BY the e1por
tation of specie or the decline in its pro.
duction.