San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1882-10-19

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all corporations which have anything
to do with the handling of gold-the
express companies probably excepted.
The fear has been expressed that
the gold certificates would be generally
preferred TO greenbacks, for the reason
that Congress would certainly not have
the hardihood to break its. faith with
depositors and touch the gold left with
it under the explicit pledge that it
should be kept to represent the GER
tifcates, and become interchangeable
with them on demand. The same
confidence does not exist with respect
TO the greenbacks. Congress may
suffer the reserve for their redemption
to become so low as to cause the sus-
pension of specie payments, or it may
conclude to redeem them in silver.
The continued coinage of the silver
dollar, its steady accumulation in the
Treasury vaults, and the relative
diminution of the gold, point directly
toward one of these alternatives, and
the more clearly this danger is seen
the greater will be the desire to pos
sess the gold certificates, which are
not threatened with any depreciation
of value whatever. At present the ex-
change is easily effected. The green
backs may be presented for redemp-
ton and gold secured for them, which
may in turn be Immediately deposited
for certificates. The fear then is not
without foundation. The only posi-
BILE advantage that the greenback has
over the certificates is that the former
is legal tender, but the latter being
convertible and receivable for public
dues, this advantage is practically
nothing. Gr
1t can be seen that should the prefer
ence for the certificates become general
there would be such a run on the
Treasury for gold in exchange for
greenbacks that the reserve would
speedily be exhausted, especially as
the existing law compels the green
backs to be reissued as soon as they
are redeemed. There is nothing to
keep the greenbacks in circulation
save the demand there may be for
notes of less denominations than 500.
The prospect is that, if Congress does
not speedily come to the rescue, and
give the country definite assurance
that the greenback will be kept as good
as gold, there will, sooner or later, be
trouble. It is more than prospect;
it is certainty. People prefer the
currency whose value is best secured.
Upon their face these gold certificates
appear simply to offer more conven-
lent method of making gold payments
than has existed hitherto for some
years, but they possess a greater sig
nifcance than that. They will tend
to compel Legislation that should have
been enacted long ago, and the cor
rection of discrepancies in our discord-
ant currency.
There is little doubt that as mat
ter of convenience the substitution of
the certificates for gold will become
general. The expenses that is in
volved in the transfer of the metal in
clearing houses and between banks in
different localities is much greater
than is commonly supposed. One
individual in New York has grown
comparatively rich in the business of
carting the balances from one institu-
ton to another. He is paid more for
the risk than for the labor, of course.
These certificates will practically put
an end to his business, or confne it to
the carriage of export and import gold
to and from vessels, though he will
have plenty to do for the present in
hauling the deposits to exchange for
the certificates. Not only this cost OF
transportation will be saved, but also
the loss by abrasion, which now
amounts to very considerable in the
course of the year. The Government
will gain something through the loss
of certificates by fire or otherwise:
Thousands of dollars worth of old gold
certificates have never been presented
for payment, and it is comparatively
certain that they never will be. The
Government is ahead some millions
on its various paper issues that have
been lost, worn out or destroyed.
The gain to the Government is, how
ever, probably not nearly so great as
the loss to the people by abrasion
would have been if coin had been used
in the place of paper.
Whatever advantages in the way of
convenience and economy that aper-
fectly safe paper has over coin will be
added to the currency in so far as gold
is exchanged into these certificates,