Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1884-03-25
PAPER MONEY.
oRrrSu,cKs AND BANK Sorr.
Tm PRorosIrfoN To ruEN rHE rHEis.
URN 1870 a BASE

lNcw Nors Poet
Aiter al the discussions Of the currency
problem during the last twenty year. ii
j. rather disheaiten NJ 70 hni sgenilemsn
Of Jackson :. Schnlit clear-headedncss
and long business experience declauns,as
be does in the Josrsal y Commsrce.ihai
although a hard money man. be could
never understand Why The paper eifcala-
ton should no, have been issued by the
national government instead Of by private
corpora,ion. Ny law the gosernmeni i'
made responsible for the secarliy Of the
bank notes. Why then should no, the
government reap the advantages Of that
circulation p lie aiiel ihA, be DID no,
think "thai among the majority Of bust
nes. men there were two opinions on that
que.iioa.'
Thi. subject wss thoroughly and, ii
seemed A. the time exhauslisly discussed
Ia 1873 after the panic, When the gov
ernmen, was 40 urgently piessed - come
b the relief % the business CON-
maniiy by the rei sue of grccnbaek. Mf
S,hultrs remarks seem % show that the
grccnback movement j. % completely
dead that even men who follos The polli
icAl discussions Of the day ~iih close az
,en,ion. Ike Mf Schul'f, have forgotten
the Arguments by which il was success
fully resisted. The prineipAl Of these ar.
gumen,. wa, that % charge the gosern-
men, With the duty Of is'uins paper cur
rcncy wAs substantially 20 ask q 20 en-
gage m the business u banking on an
immeose scale. Tris 1. really What Mf.
Schul,f nov calls ff. though his osn OBJ
iect !. concealed or disguised even TO him
.clf. BY tn phrase. Way should not the
goscrnmen, reap the aivaa,sges Of the
circulation.
The paper circulation . DOT ho~evc''
primarily Or maialy designed either iof
the advantage Of the banks OF the gov
eminent. bat Of the public. aud the rea.
.oa Why the issue of paper moaey Is iei'
70 the banks by all solvent governments
/. ,ha, ], is only through banks that the
exac. amount Of paper moaey the enun'
,ry needs can. in commercial oommun''
ties. BE- properly asoerlsIned. Banks can
only pat out a. much cuucncy a. ousi'
ness mcn cali for as sooa as they pat
ou, too mnch il comes back on ihem'
i,her IN the shape Of deposits. Or de-
mand, for redemption, OF Ia The iallins
OF of applications Of discounts. II 'h'
government wers 10 issue paper money
wi,hoai doing a regular banking business
Of deposi, and discount, the Amoanl Of
circulation needed by the coaaify would
have 70 BE- deiernincd either BY the vo'e'
Of Congress OF the simple tat Of the sec
re,Ary Of the treasury.
OF tle fitness Of Congress 10 deiermine
what the proper volume Of the currency
ought 20 De, We need hardly speak. 10
allow the secretary Of the treasury Of bi'
own notion 10 make money tight Or easy
!. something which We believe even ih'
gteenbacke- have never proposed. Ihei'
scheme has always been 10 issue paper
equal in nominal amount 10 the yAlaAiioa
Of all the property in the country, or, a'
they used to pa, il. to "base' the e'fca'
la,ioa on the property Of the country
though they never explained wha, they
meant by "bAsing". l, really did not
mean anything except that the person L.
suing the paper was TO think Of property
OF similar amour, while he was dong T.
The plan in practice would have come 10
about the same thing a. sllosing ever
man TO issue legal tender note, equal m
amour, 10 the supposed value Of hi'
goods and chA,,els, bat no, redeemAole u
them. II. for instance, he had MY
dollar COW. he could issue a hity-dollA
no,e based on the coz. bat the COW
could no, be levied on for the note.