Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1882-01-12

CeitlucdteS IN very ODJectlOnaOle.
NATIONAL BANK NOTES.
Under the existing law any national
bank can at any time, upon the de-
posit of legal-tender notes or coin with
the treasurer of the United States, with.
draw bonds held as securitytherefor and
leave the treasury to redeem an equal
amount itself. This privilege was giv-
en- the banks evidently for the purpose
of securing proper elasticity of the
currency, and in view of the rapid pay
ment of the public debt it would seem
that this privilege is necessary for the
purpose of facilitating the redemption
of bonds held by banks. But should
many of the banks, through apprehen.
sion or from any other cause, desire to
retire their circulation, the deposit
of such an amount of money with the
treasurer might cause contraction of
the currency and grave embarrassment
in business. That apprehension of
such action is not groundless is shown
by what took place on the passage of
the 3 per cent refunding bill by con-
gress last session. If it is thought ad-
visable, congress can enact that nation
al banks be prohibited from retiring
their currency, except on previous no.
tice to doso, the length of that notice
to be fixed by law.
LEGAL-TENDER NOTES.
That they are convenient and safe
for the community is without doubt;
that it is for the profit of the govern.
ment to continue them is also without
doubt. Yet there is one consideration
that should have notice, and that is
whether the government can continue
to claim for them the quality of being
legal tender for debts. This depart
ment understands that the constitutions
ality of making them solvent of con-
tracts was found in the exigencies of
the government raised in the civil war.
Whether now, when the war has some
time since closed and the government
has resumed the payment of the debts
in gold and silver coin notes of the
United States, they can be maintained
as curr"' y with the legal-tender quail
ty is question worthy of attention.
PAY THE BONDS IN GOLD.
Although the act of July II, 1870,
provides for the issue of United States
bonds, redeemable in coin of the pres
ent standard value, whereby were in
cluded both gold and silver coin of that
value, yet, as by the act of February
IL, 1873, the furthur coinage of silver
dollars was prohibited, and the Revised
Statutes declared gold coin only to be
legal-tender for sums exceeding IS,
equity, if not strict construction of law,
requires that holders of such bonds
should receive payment thereof in gold
or its equivalent. BY the act of Feb
ruary 28, 1878, silver dollars, of a
standard weight and iineness, were
again made legal-tender at nominal val
ue for debts and dues, public and prl-
stipulated in contract. Between the
adoption of the Revised Statutes, June
90, 1874, and 1878, silver coin was not
tender in payment of United States
bonds, and it might fairly be regarded,
especially by foreign holders, who had
acquired bonds during this interval, as
a breach of faith if bond creditors were
compelled to receive payment in coin
worth in the markets of the world but
IS per cent of our own standard value.
This government is abundantly able to
discharge all its obligations at home
and abroad in money which is every
where accepted as of true standard val
ue.
THE STANDARD SILVER DOLLAR,
"As required by the act of Feb. 28,
1873, the department has caused to be
coined into standard silver dollars at
least 100000 in value Of bullion of
that metal. There are only
about $34,000,000 now in circulation,
leaving more than $66,0O0,000 in the
vaults, and there is no apparent reason
why its circulation should rapidly in
crease. Il That most of the
European nations have deep interest in
the proper adjustment of the ratio be-
tween gold and silver as the coin
age, if not deeper than the United
States, admits of no doubt. We furnish
the world with the largest portion OF
both gold and silver, and our exports
command the best money of the world
as they ever should do. We need moi
appear anywhere as supplicants when
we can clearly be controllers. Some of
the European nations, whose concur
rent action is necessary to any result
that is sought, do not yet appear ready
: to accept bimetallism, and, when ready
they may ask for ratio that it will be
inconvenient for us to adopt. and re
. duce the ratio of silver below the rati,
Q of our coinage. The market intrinsi,
: value of silver indicates the prophet.
r of a considerably increased ratio. Tha
8 an agreement of the principal nation
4 of Europe with us for the larger use o
! silver coinage would furnish large
I market for silver, and, to that extent
s increase its value is certain, but tn
9 excess of it over the supply for tina
; purpose would only command the pric
t of a commodity on the market. There
t fore, the fixing of any ratio is a matte
s Of extreme delicacy, to be fully cor
o sidered. The most potential means 70
r bringing about any concert Of actio
d among the different nations, would az
d pear to be for the United States to su:
s pend, for the present, the further coir
b age of silver dollars. This is the d.
) cided opinion, in both France an
e America, of the highest authorities o
n bimetallism, and of those who wish +
IS bring silver into general use and rails
10 its value, and it is believed that ces
IS sation Of coinage would, at an earl
y day, bring about satisfactory col
1t sideration of the whole subject anon
s. the chief commercial nations. Th
1t silver question, obviously, is one thf
s, demands the early attention of our Law
m makers, or the subject may drift b.
yond our control. Unless control is r
tanned, at great sacrifice, continuant
IN Of the monthly addition to our silv,
is coinage will soon leave us no choice b.
as that of excl We silver coinage, ar
IL tend to reduce us to place in the cor
Mt mercial world among the minor ar