The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1884-12-06
LIE COMING CURRENCY
WHAT CHARLES A. DANA THING
ABOUT iT.
'''ohal Banks Must Co, Saws H.
'"'' Possibilities as to the Future
natural Forces Stronce,
Ihan Legislation.

h,- "" OAK, Dee. 1.-THE Sun. in n nota
N'o uouoie-ieaded editorial. disrnsras ~,
d"os'ioh OF Our Coming National ~,
Aeliey' ana reaches the conclusion thot -.
'ia'ionti bank currency must % and 49,
plac' 10 government currency Of COZ, "a
paper money. The article notes carn al ,1ru
.lie RAPID decrease of national honk cira,,,c
tion, and the more raoid incrnosa Una
I'm l,,' tertihcates and says:
inns will give US by 1891 a GRAND +o+,,
- i'"'ooo0 QUO of government currency
sdn'SG not more than 100000, 600 and
a4op1piy less, supplied by the hanks. oil
,.o ni %, niach may happen to modify or pre.
y, I'''' 'iliS result The conduct of men cannot
&c fFedcted 50 confidently as tbat
"a ihanlmate things. The legal tepd.
erS may be redeemed and with.
ui""i3 lie coinage of silver dollars
may De 81 pended and the supply Of o,oI3
may DE diminished at the mines or drained
away 20 foreign countries. The decrease If
national bank circulation may. ON the otbar
hand be checked 10y favorin~ l.aisIotin,
het the probabilities are greatly anainst
.ieSe events, and, as we said at the ontset il
10 liuti iAofe likely that national bank notes
VIM oe driVen out OF use altogether and
'iioii places taken by an exclusively govern.
,ieile currency. The existence of notjonal
riHh circulation, it must be remembered
u'fFhdS entirely upon the profit il Yields tn,
oahkS. These institutions are conducted
upon commercial and not upon philanthropc
principles. SO long as the bonds required Ms
security for their circulation bear a sniff
GENTLY high rate of interest, they will issue
tho notes; but so soon as
the rate falls below the paving
point, the circulation will be withdrawn,
That the people Of the United States will
for the sake Of TIM banks. sanction any leo,
lsiation by which either the national debt
Sitall De prolonged, or the interest upon it be
increased it Is idle to suppose That they
VIII permit banks to issue circulation on any
less secure a basis than United States bonds
Is equally 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.
"ci the possibility of the retirement of IT,
iegal-tender notes by redemption and cance..-
| lation, there is no indication. The contract
ing OF them in this way was stopped in 1879
| by popular clamor, and, as we have already
| remarked, they have remained fixed at their
| present amount ever since without efforts 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 it and will support it to the last AS
| to the danger that the withdrawal of the
| bank circulation may cause a monetary
| strlngency, concerning which so much
solicitude has been expressed in various
| quarters, it need only be remarked
that the coinage of gold and silver
alone will more than fill any vacuum thus
| Occasioned. Whether the coin goes into cir
| culation as coin or as government receipts
for coin, delivered on demand, is immaterial
| There is sure to be circulating medium
enough for the needs Of the community Al
the worst, suppo7iug the amount OF
| it to be reduced by an unusual
foreign demands 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 declared by the supreme
| court to be a constitutional exercise Of gov
| ernment powers. We shall always do well
to remember that the natural forces art
often stronger than legislation, and that the
common sense of events constantly set aeide
| the tralIicenaental reasonings of theorists
| and philosophers =