New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-11-10

THE VALUE OF THE NA!lONAL bANh OiCCi@'iiO@'
THE SILVER QUESTION.
TaY TELEGRAPH TO THE TRrBUNEl
WASHINGTON, Nov. 9.-Although he lives IN
.rement Hugh McCuIloch, exsecretary Of the Treas
rv takes an active interest in public affairs ana Is
thonghtfu student of National financial problems Mr.
Mccullough was to-day at his pleasant Maryland
farm few miles from Washington, by TRIBUNE CORE
snonden In reply question as to what IN MS JUG
nen should be done to preserve the National pdA HUG
circulation, Mr.. McCulloch said:
cit is difficult TO say what can De uohe'
The system certainly ought to be preserved Ifegaru IL
ma one of the best fruits OF the war PRACTICAL measures
N maintain It ought to taken but confess there does
mot seem to be any 10 expect much from the III
coming Congress- Ever since it repealed the Missouri
compromise the Democratic party has been making
blunders The Democrats now think they have
fair prospect OF electng President next year
n they can avoid blunders, and that VIII
probably prevent them from attempting any important
legislation Positive action their part has always been
astous TO them for thirty years past and their leaders
seem to think the only safety IL in negative course
Therefore do not think they will dare to touch the
tariff although they may consent to the repeal OF inc
tobac co tax.
Now as to practical measures for the pres
ervaton OF the National bank circulation
The only thing IN my opinion that Will AFFORD
the permanent relief which the country the people
and the banking system alike need is reduction OF TAXA
tion thought the changes the tariff and the internal
the reduction was not sufficient II were in Congress
would vote to repeal tobacco tax altogether and ndi
vdually might favor the entire abolition OF the internal
Revenue system although it would seem pretty hard 10
take the tax on whskey of while the duty is retained on
cheap blankets clothes and other articles of necessary
consumption.
TEMPORARY RELIEF FOR THE BANKS
As measure Of temporary and partial relief to the
banks il might be good plan to allow them circulation
ON the market value of the bonds deposited by the but
lido not think the Democratic majority in the new Con-
Qress will be likely to do anything which would diminish
the amount Of security required as basis for Ma
tiona bank note circulation Neither do think peo-
pe will ever consent that British cOnso shall be used as
security for United States bank issues
Az TO the plan outlined in TIE TRIBUNE some time ago
it has merit and have long thought that 1t would nave
been wise TO give the States some indirect aid OF that
hind I'm order TO maintain their credit and solvency
Now however, the price of bonds Of solvent states Is
unite small, and these bonds bear high premium
Moreover no matter how solvent a state may
he her bonds would not be regarded as quite
so good security for the ank notes as are
the bonds of the United The proposition TO
change the per cents for threes running twenour
wears is good one and would give the banks new lease
of life but after all would afford only temporary relief
What it seems should be done, and what advo-
Gated as Secretary the Treasury for the Government
TO issue bond bearing a low rate of interest which
cond be used not only as a basis for Ma
tional bank circulation, but for the secure
investment OF funds etc Most Of the States make
no proyision by law 10 guide trustees in making invest
ments of funds committed 10 their care IL an invest
men out badly the trustee must suffer no matter
how good his intentions were. IL would DC q
great advantage TO the people the Gov
ernment would issue permanent bonds TO the
amount of-say SlOO,OOO,OOO. Even at per cent
the interest would amount TO only $3OOO,OOO year.
mere hagateue in this country, with It's almost hna-
HE resources The would not be felt and the adYan
tages would bring would far exceed III value the outlay
required. That would insure the pernanen ana secuI
ty OF the National bank note circulation, which above all
things in financial system ought TO be preserved
Something must be done to insure suhcient ana stable
currency. 80, a.. A.. - 49, |
reissue of lcgaltendeF by the Government In time
of peace is unconstitutional have always believed that
such would be the decision whenever the question should
be properly presented and disposed Of MI Cause.-The
never held that the Government had the COnstitu |
tiOna right TO legatender notes except under
the pressure OF such an emergency as brought !
the greenbacks into existence and that he had never
said the Constitutional right existed even then"
The conversation turned upon the silver question: and
Mr. McCuOch said " do not think silver had fair
trial In my farming operations here find that silver
dollars received just as readily as gold dollars
ers, mechanics labOrers and tradesmen a
large proportion of them viii remain there |
Nevertheless, il were in Congress- would advocate the
repeal of the compulsory provisions OF the coinage act
playing into the hands Of Europe. | not greatly
disturbed by the question of the intrinsic value Of
the silver dollar compared with the gold dollar !
II the ~ and 81 gTeenbacks retired, silver would
into circulation without dihcutyi and were in
Congress think might favor the exchange in order to
get rid OF that amount OF cgaltender notes. or course
the Government realizes pretty handsome from the
loss and destruction OF it, circulation and that loss
is much greater in the OF small notes than in those or
large denominations"