New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-11-19
THE ON ENEMY AGAIN.

THE OLD ENEMY AGAIN.
II is not unlikely that the return of the Demo
cratic party to power in Congress may inaugu-
rate q new struggle to debase the currency ana
destroy the public honor. Quite recently TINS
seemed most improbable. 1t was hoped that
the money question had been honorably set
tied; that the signal prosperity which followed
the resumption of specie payments had pre-
pared even Democratic politicians, as we'll as
all sane and patriotic men, to leave the currency
question undisturbed by further schemes 10
substitute irredeemable promises for the money
of the Constitution. But the resuscltatl0n OF
the Democratic party seems to bring with IL, rs
a natural consequence, the resuscltatlon or the
worst and most foolish schemes of that party
dismal past So we now have men talking
glibly again of a new issue of $500, 100000 OF
paDer notes. based only on the faith and re-
sources of the Nation" As the Nations faith
must be broken before it can make any such is
sue, and its resources would be intellectually i'm
paired by the prostraton which would speedily
follow, the notes would be really based as they
are intended to be, on nothing.
The immediate exciting cause of this sudden
recall of vanished ghosts is the discovery that
the bank circulation may soon be considerably
contracted. Controller Knox finds that nearly
twothirdS of the bonds recently called are held as
security for bank notes. 1t was known that
over two-thirds of all the three per cents were
so held, but it had been supposed that the
earlier calls for this class of bonds would not
greatly affect the circulation. But ii is certain
that, of the first 100000, 900 of three per
cents issued, which are therefore To be the
latest called, about three fOuIthS were issued to
the banks, 50 that it is likely that they do not
hold more than half of the remainder. Never
thelcss, it is already proposed to put ont United
States notes III place OF the bank circulation,
which, it is assumed, the coming Congress Will
do nothing to preserve.
1t would De Of no use to speak OF the bad
faith of such step. The only men who are
likely to advocate it are men to whom an odor
of bad faith is sweet SAVIOR in the nostrls.
Nor are they persons with whom ordinary bust
ness considerations have weight. They cannot
comprehend that new paper imitation might
knock the foundation from under thousands OF
financial institutions throughout the country.
They are the sort of men who laughed CON
temptuOusly when told that the Carlisle bill
would make mischief, went into rage when it
did, and have believed from that day to this
that the surrender of circulation by many banks
was all the result of conspiracy" On such
men common sense is wasted. \ paper promise
ought to be just as good as gold, they say, and
therefore it shall be. The danger Is that, III
sheer stupidity and reckless spite at laws which
they cannot comprehend, they may do some
thing that cannot easily be Imdonc. 1t may be-
honcd that veto would arrest any act of
fragrant folly or bad faith, but at time when
hundreds of banks are hCsitatng whether to
surrender circulation or not in any case, the
mere passage of bill by the House might let
loose n current that could not aitcrwaId be con
trOlled.
We hope there may be some sensible mem
bcrs, however, who will ask how the Govern
ment is going to get additional grccnbackS into
circulation. 1t will hardly give them away, or
lend them On the faith and resources Of pri-
vatc individuals. Fear of defeat in the Prcsi-
dental election will help to prevent reckless cx-
pcnditurc of money. If the banks surrender
called bonds as fast as surplus revenue has been
collected in the Treasury, the operation only
puts back into circulation the money previously
taken in by taxation. Any proposal to call in
and clear away bonds amounting to one or two
hundred millions without waiting for the cOllcc-
ton of surplus revenue, one may hope, will be-
seen to involve so tremendous Il contraction of
loans that no party wil.darc to risk it, Still, it
is rather dishcartcning to have the same old
scnoelcss notions and blind prcjudiccs to com
bat again. after years OF solid prosperity and
splendid progress on Il specie basis.
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