Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1881-03-03
Democracy Bears Fruit.

been called to endure. The country
knows what the financial wisdom of the
Democratic party amounts to, at last.
For twenty years Democratic statesmen
have been saying. "Give us a chance,
"and you shall SEQ wise legislation" In
the so-called Funding bill, we have the
lovely flower, and in its consequences
the ripe fruit, of Democratic wisdom.
Or rather-let us be justl-we can dimly
imagine what the ripe fruit would be if
we had no Republican Administration
to stop the mischief by buying bonds.
Congress finished its part, and fully man
ifested its wisdom, when it gave 2,C00
National bank, the strongest possible
reason for suddenly retiring S2Oo,OOO,OOO
of circulation. Measure, if possible. the
losses and disasters, the shock of the
public credit, and the blow to individual
enterprise, which have already resulted
from the retirement of about ten mil
lions of circulation; then multiply that
by twenty, and we shall have some faint
idea of the practical fruits of Democrat
ic craftsmanship, as applied to the solu-
ton of financial questions.
A Republican Secretary of the Treas
ury has interfered, to save the country
from immediate experience Of the full
consequences of Democratic legislation.
For the moment, purchases OF bonds Will
serve to postpone part of the effects of a
violent contraction. Democratic law
giyers, with some lunatics of both par
ties, imagine that the Government is en-
gagged in a struggle with banks. MIR.
Sherman is not fool. He knows per-
fectly well, if some Congressman and
editors do not, that the Government is
utterly powerless to resist, for any
length of time, if the banks conclude to
surrender circulation. The utmost that
can it can do is to render the contraction
of currency loss disastrous to the busi-
ness interests of the country. This he
seeks to do by expending in the pur-
chase of bonds the surplus revenues
which may be expected for some months
to come The money paid in for REDEEM
tion of notes, the Treasury is obliged to
have on hand for that purpose, and can
not use in any other way. 1t cannot be
spent in buying bonds, and at the same
time retained for redemption of notes as
they come in. Hence the power of the
Secretary is is limited. Whatever pow
er of the Secretary is limited. WhateV-
er power he has under the law, he uses,
but he has he power at all to make new
laws for the protection of the country
against Democratic stupidity. If he
were engaged, as some dolts imagine, in
an attempt to crush,o or coerce the banks,
he would be making an effort foolish
enough and hopeless enough even for a
Democratic Congressman-and what
more can possibly be said ? Acting with
in their rights under the law, the banks
have infinitely more power than any
Secretary of the Treasury would have
in an attempt which no law empowers
him to make Secretary Sherman is ma
king an honest effort to mitigate the i'm
mediate consequences of Democratic i'd
iocy that is all. If the Funding bill be
comes law Mr.. Sherman has too much |
sense to fancy that the surrender of cur
repcy can be stopped.
1t is supposed by the Democratic DON |
key, and by such Republicans as look to |
him for wisdom, that contraction will |
cease, as soon as the Funding bill has
been signed. Deposit OF notes for reduc-
ton of circulation will cease, but that is
all. The banks which do not choose 10
take three per cent bonds, and to tie |
up Indefinitely, will then
proceed to act under either of the two
sections 5,l60 or 5,225, Revised Statutes.
Under section 5,160 the banks can gath
er in their own notes, helping each other |
the country, and reduce cap
ital and circulation as fast as they can |
notes in sums of reasonable |
amount, thereupon getting back pro-
portionate amount of their bonds. Or,
under sections 5,22o-5, ,224 inclusive, any |
bank can retire from the National sys-
tenn and get back all its bonds without |
delay. For, under 1920, any National |
bank can go into liquidation as such by |
a vote of twe-thirds of it's stock. Notice |
must be given for two months, section |
o 5,221; but it is 'aotrequired that the sur
render of circulation shall be deferred |
single day. For section 1922 provides |
that /" Hitlsin six months from the date |
" of the vote to go into liquidation, the |
" association shall deposit with theTreas- |
" rer of the u. States lawful money of 1
" the United States sufficient to redeem !
" all its outstanding circulation" This |
can be done at any time, but must be done |
within six months. And then section |
1924 provides: -. 80 --.iia
Whenever sufficient deposit of lawful mon |
ey to redeem the outstanding circulation of an |
association proposing to close its business has |
been made, the bonds deposited by the associ- |
alton to secure payment of its notes shall be |
reassigned to it in the manner prescribed by |
section 5,162; aud thereafter the association |
and its shareholders shall stand discharged |
from all liabilities upon circulating notes. and
those notes shall be redeemed at the Treasury |
of the United States. ..
In this manner any bank can cease to
be National bank, get rid of its circu-
lation, recover its bonds and organize |
and benin to do business as State bank |
within a single week. "But they will |
not do it, says the Democratic states
man. With equal positiveness and equal |
wisdom the same marvellous blunderer /
said that the banks would never surren
der circulation-it was too precious to |
them. Within a week, if the So-called |
Funding bill becomes a law,Nwe shall |
begin to see National banks withdraw
ing from the system. Democratic states
is stupid enough to attempt to
rob the banks, but altogether too stupid
10 get it dOne effectually. One thing /
his Congress has done. 1t has enabled
ali shareholders in National banks to
ret the measure of Democratic honesty
ind decency, and the whole people to get
5he measure of Democratic wisdom
n. Y. Tribune. g..r -.Hi
THE New York Tribune of Friday, in
to the commercial situation,
'ays when the Refunding bill is before
,he House, its title should be amended
,y the substitution of the words propo-
ed by Congressman Updegraf, of Ohio,
Il han the hill uas 1nder consideration in