Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1884-12-11
Our Future Currency.
Mr.. Dana Thinks the National Bank
Notes Must Go,
Giving Place to q Government Cart
rency Of Coin and Paper Money.

The New York Sun Of Friday, in q
notable double-leaded editorial discusses
the question Of Our Coming National
Currency" and reaches the conclusion
that the National bank currency must
60, and give place to a government cur
rency of coin and paper money. The
article notes carefully the rapid decrease
of National bank circulation, and the
more rapid increase In coin and coin
certificates, and says:
This will give US by 1891 a grand total
of 81, ,l35, 100000 Of Government curren
cy, against not more than Sl00,0oO. 900,
and probably less, supplied by the banks.
OF course, much may happen TO modi>
fy or prevent this result The conduct
of men cannot be predicted so confident
ly as that Of inanimate things. The le-
gal tenders may be redeemed and with>
drawn, 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
decrease of national bank circulation
may, on the other hand, be checked by
fzvorinR legislation. But the probaoill-
ties are greatly against these events,a and,
as we SAID at the outset, it is much more
likely that national bank notes will be
driven out of use altogether, and their
place taken by an exclusively Govern
msnt currency.
The existence of national bank circu
latiou, IL must be remembered, depends
entirely upon the profit it yislds the
banks. These institutions are conducts
ed upon commercial and not upon phil
anIhroplc principles. So long as the
oonds required as security for their cir
ulatlop Uear sufficiently high rate OF
interest, they will issue the NOES; but
% soon as the rate falls below the pay
log loluI, the circulation. will be with
drawn. Al present there are enough 3
ver cents 10 Oe bad at about par 10 make
A. worth v lille tu take out circulation
.,pun them. but those bonds, as we know,
will all soon be paid of, and the Comp
roller of Lne Currency Tells US That the
Is aud AIS are already too high t.
make lheu profitable basis fer clrcu-
.aLiun. Tue 412s vii! surely be redeem
d at their maturity IN 1891, and the 4
are rIsIns in price continually, under the
,a,uue lion Tor them by executors, trus'
-es, savings Institutions, and tlmld In
yes ors. hat the people of the United
states will, lur the sake of the banks
Sanction any legislation by which ethel
he national debt shall be prolonged OF
,he interest upon it be increased, 1t is
idle ro suppose. That they Will permit
Danks 10 issue circulation on any less
basis than United States bonds is equal
ly Incredible. There is no escape, thai
we can see, from the hard logic OF facts
rhe 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
az we have already remarked, they have
remained fixed at their present amount
ever since, without efforts by either 20
liticsI party to reduce it. The same may
be said of the coinage of silver dollars
Every attempt to check or suspend II
mas hitherto been abortive. The West
almost unanimously favors it and will
support it to the last.
AS to the danger that the Withdrawal
of bank circulation may cause none
tary stringency, concerning which sc
much solicitude has been expressed IN
arlous quarters. it need only be remark
I'D that the coinage of gold and silver
Alone will more than fill any vacuum
thus occasioned. Whether the eoit
goes into circulation as coin or as Gov
ernment receipts for coin deliverable Oh
demand is inmaterial. There is sure tC
oe circulating medium enough for the
needs of the community. At the worst
surprising the amount Of be reduced by
AN unusual foreign demand exceepinl
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 Government
power.
We shall always do well to remembel
that the natural forces are often strong
or than legislation. and that the common
sense of events constantly sets aside th'
transcendental reasoning of theerist
and philosophers.