Mexico weekly ledger. (Mexico, Mo.) 1855-1956, 1881-08-11
SILVER.
A Suitable Basis for Renewed Bank
Issues.

Issues.
The hostility manifested by the
National Banks to silver and the re-
funding bill has not increased their
True, it has not been
possible TO organize the congressional
majority that is necessary to curtail
their issues, and may not be as long
as the Republican party is in the as
tendency, but it is doubtful at least,
if the necessary votes can be found
in even that organization to author
ize their continuance upon their ex-
isting basis.
Under no circumstances can such
q prolongation of them be continued
beyond our national Indebtedness,
about one-fourth of which is absorbed
as security for their paper.
When, therefore, our National Bank
note circulation shall be retired, it
will be necessary to find substitute
for it, and to this end there have been
two suggestions: Increase of green
backs, or enlargement of our coin
currency. Sufficiently large issues
of either or both would unquestiona-
ably meet all the demands of COM
merce and industry, but more green
backs would involve the further accu-
mutation of public coin, which is al
ready inconvenient and burdensome.
Might not government, however,
permit banks to issue paper based
deposits of silver, and thus furnish s
means and argument for the greater
retention and use OF that metal ii
this country? Upon their first estab
lishment the National Banks derived
large revenues from the high interes
allowed upon the bonds deposited bl
them but as that is no longer per
missible, the step from present rate
to non-produotive metal would b
neither great nor injurious, and evel
state banks might be allowed to issu
notes upon such security.
At the last session of Congress tn
banks frightened Mr.. Hayes into
veto of the refunding bill npo
grounds that have been demonstrate
to have been false, and since that tim
an arrangement has been perfecte
between them and the Secretary
the Treasury, whereby they obtal
temporarily a half per cent. more il
r terest than Congress was disposed
allow, and than short bonds cou
have been negotiated for. The que
tions of retunding and the curren'
are, therefore, unsettled, and will,
8 oil probability, come ap toseth
next winter.
This condition of things confe
great interest upon Mr.. Thurman
statement at the late Europe can mon
conference, that sin his opinion
United States would feel it to be
duty to reject any and every proE
sition that would come short of
= metalism. The American people
not desire an alternative standard
gold to-day and silver to-morro"
nor single standard, whether
gold or silver, and certainly not
,. single silver standard. Their stt
of silver money is less il proport
to their wealth and population Il
that of most commercial natio
while on the other hand, their ST.
= of gold is very large and is steac
increasing day by day, and is lik
to continue to do so unless checl
bv some blunder. Under such
cumstances it is natural that COVE
ment should hesitate to enter into
u agreement, the effect of which mi
possibly lessen the amount OF
u gold. 1t would cheerfully become
J! party to great bi-metalllc uni
which, if formed, would OF co,
open its mints to free coinage
silver; but I must be permitted
: doubt whether without such an III
- in existence, it will by conven
al surrender its power over Its
coinage