The daily gazette., 1882-02-13
SECOND EDITION
Proposed @mbs6nGm1fom OF Greem-
backs Ter Bank Notes.
Mr.. Rreknsr's DsEsnss Of Mss nan.
From the N. =. HeraId.

from tne ~. ! herhl0s s
WAsHINaIoN, Feb. IL, 1882.
3 Mr.. Buckner, OF Missouri, said to-day
concerning some comments of your
special correspondent on hrs bin TO OK.
tinguish the national banks and substi-
tute Treasury notes for their notes. I
There are some misconceptions and
mistakes, with some truth, in the artl-
cles referred to. II 10 mistake that no
democrat has introduced bill to take
away the legal tender function Of the
greenback. introduced q bill, now
before the Banking Commitsee, which
Included this proposition among others,
In order to provide uniform and stable
credit circulation, but am free to say
that would not vote for it rs separate
measure, because che opposition to legal
tenders originates In desire to give the
entire issue Of the credit circulation to
the banks instead Of the government.
"How are the democrats on the uues-
tion of making paper money q legal ten
der between indiVlduals?" the Herald
reporter asked. .,,n
."They generally believe that the de-
cision Of the Supreme Court ia contrary
to the consultation but II has done all
the mischief it can do and justIRes them
In maintaining It; but think Q large
majority Of them would vote TO substi-
tute rsdeemable Treasury note for the
legal tender notes as well as the ba NIX
notes and thus get rid OF the legai tender
quality of the Treasury notes." s.
Does the Herald represent the pro-
posed substitute correctly aa to ita
non-e lasticfty ?" sNa a5
"If that Is . valid objection my
proposition ID ameDdable 10 IL, and
say further that IL ana wrong In puts
ting limit on the credit circulatlen
the first National Bank act wHs q
blunder, and The Ananoisfs both OF
England and Germany have com
mItted the same blunder, and are
laundering still. Since 1874 the credit
circulation Of Great Britain has been
fixed in amount by Law and the same
policy is adopted practically In DER
many. There never was @ greater a.
nancial or monetary folly than that
which the Herald designates az elias
sicity, when applied to q purely credit
circulation, and it hAs been discarded
everywhere except in the Unitfd
States. Elasticity in the circulation
involves both contraction and expah
sion. Heretofore expansion has beer
the rule. In future this elasticit!
will sooner or later bring about inc
vitable contraction Of bank issues
we continue to pay of the pablo debt
as we will. have no doubt that thI
forty odd million of increase in banl
circulation paid 10 the last three year
has had NO little TO do with the presen
and futrtss outflow of coin. Il ha
tended t04ncite speoalation aud un
duly initiate prices at time when cOil
was flowing into the country by ten
of millions, and when there was nj
necessity for this increase Of pApe
circulation except to mako profits fo
the banks" Al
THE INCREASE OF CIRCULATION.
How would you provide for increase
of circulation az the population anC
business of the country increasei"
'fOf course my proposed substitute
only applies to the bank note clfoula
tion and 1t does not attempt 10 20 be-
yond that. But it does assert the
principle that the government should
issue directly and not by corporations
all the credit circulation as we'll al
the metallic circulation, and it em-
bodies another principle and that ii
the divorce of the issue Of paper cir
cuIatlon from the business OF banking
The substitute simply proposes tc
take from the banks the right 10 issue
their promises to pay and transfer il
to the government and fixes thai
amount. Elasticity TO the circulation
should be giveR by coin or the repre-.
sentative Of coin, such 80 onr gold and
silver certificates. This Is another
principle of the English system thai
has been in circulation for nearly forty
years. frsl lltv gr5I8
"What have you to say to the objec'
tion urged by the Herald that every
Congress will be attempting TO incEeasa
the amount of the notes and thus keel
prices huctuating 2"
III have only to say to that objection
IL it is worth anything 1t proves tot
much, and that is that we do mot pos
sess the capacity for self-governmsnt
and that we ought to auth0riKe cor
porations to raise our revenues, regu-
late commerce and fix the duties 81
imports, instead OF It's being done By
Congress.
SENTIMENT OF TIE DEMOCRATS.
"WilI the democrats generally sup.
port your substitute ?"
tsI think they will rs q genera
thing. In fact, unless I am greatly
mistaken the payment Of the three ant
half per cents will render some sucl
measure an absolute necessity and M
portion OF the country will demand i
more Justify than the great none.
centres. The national banking system
| is eur 'siok man. and the sooner 1t h
removed out OF the way the better
| No extension of bank charters cal
save it from speedy dissolution, ana
while it is dying its elasticity, whicl
the HsrdlS so highly commends, viii
| unfortunately be in, the wrong direc'
tion and most likely at the wronl
time. 5si3 sfH an ~