National Republican., 1880-08-26
THE CURRENCY IN THE FUTURE.

nv lhE tOtNhbs
Currency is reported at premium with
gold in New York The demand for note
currency in the south aud west evidently
exceeds the supply, while the limit of the
supply has heen reached Under present
laws no addition of importance can be
made to the greenhacks or national bank
notes, aud the question will soon have to
he met in some shape as to where a needed
additional supply is to he obtained There
is, too, strong probability that there will
be decrease Of the national bank notes if
things are left as they are. We think there
is almost certainty that many national
ba nlSs will within the next two years sur
render the privilege to issue currency.
The credit and market value of tho public
stocks of the United States have advanced
so rapidly, and the redemption of $780,
100000 additional bonds is so near, that the
national banks will soon have to surrender
more than half their circulation, leaving it
to he redeemed hy the treasury, and as fast
rs the Eotes are presented-the process will
be a slow one in the present scarcity of cur
rency-a corresponding amount c: silver
and gold circulation will have TO be issued
in SO and 500 notes or certificates.
There will soon be only 81 ,0OO,OOO,OOO of
United States funded stocks iu existence,
S150000,000 in 4 per cents. and S250,000Q00
for all uses outside Of banking, for savings,
trusts, private estates and legacies, private
investments, etc, and the market price Of
the per ceuts., so far from pausng at 10
per cent, will gradually, If not rapidly,
advance TO lis or lls per cent, yielding
only per cent per annum for the twenty
six years they have to run.
The national banks cannot we'll compete
for these stocks Oh such terms for banking
purposes to take the place Of the $780,
100000 Of So aud IS of 1881, which the
treasury may at any time prepay, allowing
interest to maturity, and assume the out
standing circulation. return of only 3
per cent. per annum, with ] per cent. tax
tably put stop to the increase Of bank cir
cuation and transfer to the treasury the
Office of supplying coin notes, Already
some Of the bankers talk of selling their
per cents. and surrendering their circua-
ton. The premium is tempting and the
tax on circulation large item on the other
side of the account.
To meet the wants of trade for more
currency will he one Of the questions which
will confront the next congress and the
next administration at the very beginning
II is important to know how the matter is
to he dealt with If HANCOCK and a demo
cratic congress are TO meet the question il
will be by a repeal of the 10 per cent tn,
on state bank notes and a return to state
banks and wildcat currency, which cursed
the country before the war One of the
rights of the states to be restored viii
be the right to regulate their own currency
Is this one of the changes which the ooun
try needs?
OF course with republican congress anC
executive no such retrograde step will b.
taken. We look forward to the time whel
there will be silver and gold certificates T.
take the place Of all national bank note:
and if those cannot he supplied fast enoug
the outstanding due bonds of 1881 can b
paid of in greenbocks, to increase the vol
ume.of the currency. As it is now, if tn
holder ofcalled bonds were allowed n choic
as between receiving gold or greenbacks i
redemption of his bonds he would choos
the latter. Is this not resumption indeed
( Even our greenback friends ought to tur
in and boom for SHERMAN, HAYES an
GARFIELD