The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1884-12-10
"oUR COMMON CURRENCY

The New York sun Discusses the Question
OF the Currency, and Predicts the Ex-
tinction OF the National Bank Circula-
uOn.
NKw YORK, Dec. 5.-The Sun in q nota-
bic, double loaded editorial discusses the
question of "Our Common National Cur
rency," and reaches the conclusion that the
National Bank currency must so and give
place 70 Government currency of coin and
paper money. The article notes carefully
the rapid decrease OF National Bank circula-
ton, and the more rapid increase in coin
and coin certificates and says: ''Thls will
give Us by 1891 grand total of $l,135, ,OOO.-
coo OF Government currency, against not
more than S100 600 900, aud probably less,
supplied by the banks. OF course, much
may happen to modify or prevent this re-
suit. The conduct of men can not be pre-
dicted so confidently as that OF insnimste
things. The legal tenders may be redeemed
and withdrawn; the coinage of silver dollars
may be suspended, and the supply Of gold
may be diminished at the mines or be
drained away to foreign countries. The de-
crease of National Bank circulation may,
on the other hand, be checked
by favoring legislation, but the probabilities
are greatly sgainst these events, and as We
said at the outset, and 1t is much more like
ly, thst the National Bank notes will be
driven out OF the United Ststes altogether,
and their place taken up by exclusive
Government currency. The existence of
National Bank circulation, it must be re-
lz 81
it yields the banks. These institutions are
conducted upon commercial and not upon
philanthropic principles. So long as the
bonds required as security for the circula-
ton bear a sufficient high rate OF interest
they will issue the notes, but so soon as the
rate falls below the paying point their eircu-
lation will be withdrawn. At present there
are enough per cents. to be had at about
par to make il worth while to take out Cir.
culatien upon then, but these bonds. as We
know will all soon be paid of,
and the Comptroller Of the Curren-
cy tells Us that the 4s aad
as are already too high to make them
profitable basis for circulation. The 41zs
will surely be redeemed at their maturity, IN
1891. and the as are rising in price contin-
ually under competition by executors, trus-
tees, savings Institutions and time ioVesters.
That the people of the United States will,
lation by which the national debt shall be
prolonged or the interest upon il be in
creased, it is idle TO suppose. That they will
permit the banks to issue a circulation on
any less secure a basis than United States
bonds is equally incredible. There is no es-
cape that see from this hard
lsyer of facts. The National Bank currency
must 90, aud that pretty sO0n, II the
posi- bility OF the retirement of legal tender
notes BY redemption and cancellation there
is no indication. The contracting OF them
in this way was stopped in 1873 by pnblic
clamor, and as we have already remarked,
they have remained fixed at their present
amount ever since without effort By either
| political party to reduce it. The same may
| be said of the coinage of silver dollars.
| Every attempt to check or to suspend it has
| hitherto been abortiVe. The West almost
| unanimously favOrs il, and will support it
| to the last. As to the danger that the with
| drswal OF bnDk circulation may cause a
| money stringeDoy, the coming, which causes
| SO much solicitude, has been expressed in
various quarters it need only be remarked
that the coinage of gold and silver alone
| thus occasioned whether thu coin
goes into circulation as coin
or IS Government certificates for coin deliv-
| eTsbls on demand is immaterial There is
sure to be circulation medium OF enough
for the needs of the community at the
WcreI cupposing lhe amount OF 1t 20 os
reduced by an unusual foreign demand, eX-
ceeding the product OF our mines, We shall
| have always, as We had during the var. the
resource of legal tender notes, especially
since the issue of them has been declared
by the Supreme Court TO be Constitutional
exercise of Government power. We shall
always do well 10 remember that the natu-
raj forces are often stronger than legislation,
and that the common sense of events con-
stsntly sets aside the transcendental reason
iDgs CT theorists and philosophers"