The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1884-12-11
- sun - a. Currenrz.


NEW YoRx, Dec. S.-The Sun, in Q
notable doubleheaaed editorial, dis
cusses the question q our coming IA.
tional currency and Fesches the conclu-
sion that the nAtIonsl bank currency
must go, and give place 20 government
currency OF coin and paper money. The
article notes carefully the rapid decrease
OF national bank circulation, the
more rapid increase in coin and
coin certificates, and says, they
viii give as BY 1891 q grand total OF
u. lS0, GOO, 600 Of government currency,
against not more than 500. Geo. 900. end
probably less, Supplied by the banks. OF
course much NAV happen TO modify or
prevent this result The conduct of men
Cannot be predicted SO confidently IS
that of inanimate things. The legal
tenders may be redeemed aHd with
drawn, the coinage of silver dollars may
be suspended and the supply OF gold
| may be diminished at the mines or
drained away TO foreign countries. The
decrease of national bank circulation
may on the other hand be checked by fa-
voring legislation, but the probability
| is against these and az we said az the
outset It is much more likely that nation
al bank notes viii be driven out OF use
altogether and their place taken
by an exclusively government carrsn.
cy. The existence Of national
bank circulation, il must be remember
ed. depends entirely upon the profit Ii
yields to the banks. These institutions
are conducted upon commercial and not
on philanthropic principles So long
1 as the bonds required as security for
their circulation bear a sufficiently high
rate of interest they will issue the notes,
| but so soon as the note falls below the
passing point the circulation will be
withdrawn. At present there are enough
per cents TO be had at about
par 70 make it worth while 70
| take out circulation upon them, but
these bonds, az We know, wall all soon
be paid of, and the comptroller of the
currency tells US that the As and AS
| are already too high to make
them a profitable basis for circulation.
The 416's will surely be redeemed at
their maturity in 1891, and the As are
rising IN price continually under the
competition for them by executors, tFus-
! tees, savings institutions and iimid IN
Vestors. That the people of the United
Ststes will, for the sake of the
which either the national debt
shall be prolonged or the
interest upon 1t be increased, it is idle
to suppose That they will permit banks
to issue circulation on any less secure q
basis than United States bonds is equal
lily incredible. There Is no escape that
we can see from the hard logic of facts.
The national bank currency must go,
| and that pretty soon. OF the possibility
of the retirement OF the legal tender
notes by redemption and cancellation,
there is no indication. The contracting
of them in this way was stopped in 1878
by popular clamOr, and as we
have already remarked, they
have remained fixed at their
present amount ever since without ef-
| il. The same may be said of the coin
age of silver dollars. Every attempt to
check or suspend it has hitherto been
abortive. The west almost unanimously
favors 1t, and will support it to the last.
AS to the danger that the withdrawal OF
bank circulation may cause q monetary
| stringency concerning which so much
| solicitude has been expressed IN
| various quarters it need only be remark
ed that the coinage of gold and silver
alone will more than fill any vacuum
thus occasIoned. Whether the coin goes
into circulation as coin or government
receipts for coin deliverable on demand
is immsterial. There is sure to be cir
cRlating medium enough foI the
needs of the community al
the worst, supposing the amount of it te
| be reduced by an unusual foreign de-
| mand exceeding the product of our
| mines. We shall have always, as we
had during the war. the resource Of legal
tender notes, especially since the
| issue of them has been de.
clared by the supreme court
| to be constitutional exercise of govern.
mental power. We shall always do vel
| to remember that the natural forces are
often stronger than legislation and tbs
| common sense of events constantly Sc
aside the transcendental reasonlngs o.
the philosophers.