The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1884-03-05
WHAT WILL our ounnnNoY nr'

Tho debate thai has been Ia progress In |
the United States senate for week or ten /
days past, over the NornEEsos bill, has
been The occasion OF the expression oftho
financial ylews Of pretty muoh the eutlo |
tenat-, osrtoinly 81 ihst portion having any |
settled financial ylsWa, II has nl,o de. /
closed the fact that there Ia NJ great dis !
position 20 differ among ansuelors as among |
doctors. The necessity for maoting the
threatening money problem OF the day is
an imperative one. The rapid exiingulsh'
ment Of the national debt, upon which the
national banking system aud the national
bank notes nrc based, e not only threaten
ing the snnlhIlalion o. the bsuhs, but q
serious crisis, Il the vu.umc Of circulating
notes Withdrawn by iheposaible suspension
Of the hanks is not replaced In
some way. The problem presented by
this state OF affairs IL that which
the senate has been seeking to practically
solve.
Some $500, 900 of the Th,ees. the prn.
dpal basis Of tie banks, are likely to be
paid within the mex. iewyesrs two or three
indeed, and the Withdrawal within such u
time OF 90 much OF the circulating medium
OF the country Is llIelg "a produce dlsas.
trous results. II The Threes go, the banks
will be Orcd 10 suspend or adopt ,he Fours
az basis. Blu, he enormous premiums OF
these latter, win not the bankers insist per-
NIT tho maintenance Of the system at a
profitable ipure2 Moro particularly Will
tlis be the case whom tho Withdrawal Of ihg
Thress tukes place, making the higher
bonds tho only depe6druoo Of the rystem
in the Est place, more largely Ia de-
mlnd therefore in the second place and
bearing ss an ultimate result even o much
greater Premium tho they now carry.
To remedy this IS The object OF the Nc
PHERsoE bill, which proposes 70 issue Ok
per cent. oil the actual ysluo Of bonds TO the
banls instead Of 90 per cont. Of the face
value as now. The author OF tho bill pro
posed to go even one stsp further and tSkG
of the tax on circulation, but even thefC
measures e is seen from tha progress Of tho
senate debate will not reach the root OF the
disease. At best the measure would only
relieve 10 the extent Of s35 OOoQ go or $40,
coo eco the evils resulting from the contrsc
ton Of four or five tlmss IS much banl
money. And worse than ALL the extin
guishment of the debt continuing the prob
lem would rem ain and become constantly
more d fllcult of solution. McPBBRsor'!
theory is that the greater the contraction
the greater necessity fer more banks, witt
their currency, end the gres or the neces
sity the greater the profits and induce
ments to supply tho demand for more
money. He fails to perceive, however. thai
a. the necessity for establishing more banbl
grows, the bonds without which they con
not be established likewise and proportion
ately appreciate and render still more
doubtful the matter of profits. Indeed the
more the Fours or the. higher interest bear
ing bonds are depended upon to suatain
the banks the greater the improbsbility OF
the System main tanning itself.
The question /, one Of the knottiest thai
the dignified senators have bad to graphic
for rome time past and from the mass oil
argument, political economy and authority
and illustration involved in the discussion,
but two or three causes suggest themselves
as practical escapes from the difficulty.
The first ia to stop paying the debt and al
low tho system to remain intact. But this
involves the policy OF reduciRg the tariG and
cutting down the surplus annually, and
the east will not hear to this. 1t looks like
an injustice to this generation, however, to
be forced.to pay this national debt and tus-
tain for years burdens OF taxation amount
ing to $50 900. 600 moro than tho expenRea
OF the government call for. The second
plan ia even more Objectionable, is ooiec-
tionsblo indeed to all sections aud classes,
for IL necessitates increasing the national
debt by new bond or loan to run tor q long
period at low rate Of interest merely for the
support of the national banks. These plans
all contemplate the continuance OF tho
national banking aystem but the third and
last does not.
This other suggested course is the issu.
auce OF government notes to take the place
Of the retired bank notes o. rapidly and in
such volume as tho latter are Withdrawn.
II prevents contraction. II furnishes a
convenient money and IL gives to the
people a currency equally as good
as that Withdrawn. Il Is limited in issu
ance dollar for dollar to tho bank notes
Withdrawn, and depends for its value upon
The same promises and srte grounds that at
present uphold the treasury note, namely.
a legal tender character and the pledge Of
the government that specie will be ex-
changed for It at tho national treasury
whenever the holder tires Of 1t or becomes
fearful OF it. 1t 10 to BIO placed in she treas
ury and get into circulation Just 81 the
other treasury money does. 1t is the his
tory OF the world, that good, par money
finds no difficulty in getting into. circula-
ton.
These are in brief the questions and the
policies involved in this currency debate in