St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-12-06
POLITICAL MENU.
The New York Sun Discusses the
Question Of Our Coming
National Currency.
Mr.. Barker Reiterates His Charges of
Corruption Against the Manage
ment of the Treasury.
Strictly Working SessiOn-Ais-
eellaneous Politics
The Now York "sunron National Currency.

The New York "Sun'On National Currency.
New YORK, Dec. 5.-The Sun, in nota-
ble doubie-leaded editorial, discusses the
question of ''our coming national currency"
and reaches the conclusion that the national
bank currency must 90 and give place TO q
government currency 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: ''Tbk will give
us by 1891 grand total Of 81, ,l35, ,000, 900
Of government currency against not more
than 500, ,O00, 900, and probably less, sup
piled by the banks. OF course, much may
happen to modify or prevent this result.
The conduct of men cannot be predicted so
confidently as that of inanimate things. The
legal tenders may be redeemed and with
drawn, and the coinage OF silver dollars may
be suspended and the supply of gold may be
diminished at the mines OF be drained
away TO foreign countries. The decrease Of
national bank circulation may, on the other
hand, be checked by fayoriug legislation,
but the probabilities are greatly against these
events, ami, as we said at the outset, il Is
notes will be driven out OF use altogether,
and their places taken by an exclusively gov
erment currency. The existence Of national
bank currency, it must be remembered, de
pends entirely upon the profit il yields the
banks. These institutions are conducted upon
commercial and not upon philant nthropic
principles. So long as the bonds required as
security for their circulation bear suffi-
ciently high rate OF interest they will issue
the notes, but so soon as the rate falls
below the paying point the cir
cuation will be Withdrawn. At
present there are enough three
per cents. 20 be had'at par 10 make II worth
while 10 take out circulation upon them, but
these bonds, as we know, will all soon be
/ paid of aud the comptroller Of the currency
tells US that the As and the 4l<'s are already
too high TO make them profitable basis for
circulation The AIS will surely be redeemed
at maturity in 1891 and the As are rising in
price continually under the competition for
them by executors and trustees OF savings
! institutions and timid investors. That the
/ people of the United States will for the sake
/ Of the hanks sanction any legislation by
which the national debt shall be prolonged
or the interest upon ii be increased, it is idle
TO suppose, that they will permit the banks
TO issue circulation on any less secur-
basis than United States bonds is
equally incredible. There is no es-
cape that We can see from the bard logic of
facts The national bank currency must 20,
and that pretty soon, OF the possibility of
the retirement Of the legal tender notes by
redemption and cancellation there is no In
dication. The contracting of them in this
way was stopped in 1875 by popular clamor
hos lsaI shar- h.
mained fixed at their present amount ever
since, without effort by either political party
10 reduce it. The same may be said Of the
coinage of silver dollars, every attempt 10
check or suspend il has hitherto been abor-
| tive. The west almost unanimously fayors
| il and will support IL TO the last. AS 10
danger that the withdrawal of bank circula-
ton may cause monetary stringency,
! concerning which so much solicit
tude has been expressed in various
quarters, it need only be remarked that the
coinage OF gold and silver alone viii more
than ill any vacuum thus occasioped.
! Whether this coin goes into circulation as
coin or as government receipts for coin de-
liverable on demand, is immaterial. There
| is sure TO be circulating medium enough for
the needs Of the community. At the worst,
supposing the amount TO be reduced by an
unusual foreign demand exceeding the pro-
duct OF our mines, we shall always have, as
we had during the war, the resource of the
legal tender notes, especially since the issue
of them has been declared by the supreme
court to be a constitutional exercise Of gov
ernmental power. We shall always do well
to remember that the natural forces are often
stronger than legislation, and the common
sense Of events constantly set aside the
transeendental reasonings OF theorists and
philosophers.