The weekly Elko independent. [volume] (Elko, Nev.) 1872-1887, 1885-02-01
unnxcuaARY Irra.

certain prominent Persons IN the East
for the impending fate OF those Govern
ment pets. the National Banks. That
the SUPPRESSION Of those institutions
would prove a blessing instead Of "A ca
lamity, is clearly shown in the following
able article from n recent issue OF the
New Yvfx Sun:
"An this alarm arises from two funda-
mental misapprehensions. One of them
is that the country cannot dispense with
the circulating notes issued by the Ma
tionRl Banks. The other is that in order
to have banks at ali they must be allowed
and even bribed to issue circulation.
For example, the Hon. John Sherman
asserts that it will not be safe for n COM
mercial community to rely exclusively
upon coin and coin certificates for its
currency, because the coin may be ex-
ported and great contraction may be thus
occasioned, whereas the supply of Ma
tional Bank notes can be regulated I o
meet the wants of trade. lie entirely
OYerlOoks the fact that National Bank
notes, in order 10 have an equal value
with coin, must be made redeemable on
demand in coin, and that when coin is
required for export these notes will be
withdrawn and presented for redemption
until the needed quantity of coin has
been obtained. Representative Potter
of this city is also afraid of the evil con-
sequences of e%xtinguishing the notes of
the National Banks that he wants the
Nation to change its 4 per cent. bonds
due in 1907 into 2H per cents, and pay
down i'll advance the twenty-five years
difference Of ~ per cent. a year, in
order that the banks may buy n cheaper
security for their circulation. A much
better scheme would be to redeem the
bonds at ono in legal tender notes.
This could he done at tie price OF not
more than par and six years interest,
and the Nation would her get all the
currency il needs and have no interest
at all to pay oil the bonds forever after.
Even our erudite contemporary, the
Times, was betrayed lately into the as
sertlon that National Bank notes are as
good as gold while legal tenders are re-
deemable in silver, forgetting that the
bank notes are ~redeemable in the very
legal tenders it depreciates, and conse-
quently cannot be superior 10 them in
value. The other day it said, also. that
National Bank currency is better than
any other kind OF paper money we arc
likely TO have, because it cannot be con.
tracted or expanded arbitrarily. That
this is not so is proved by the idiutic
fright of the National Banks nj the Car
Isle bill in February, 1881, when their
managers threw the whole country into
financial commissions by suddenly with
drawing millions Of dollars OF their cir
culatiOn. Their excuse was that they
did not want to take a ) per cent i've
twenty year bond ut par, and yet only
eighteen months aiterward they were
scrambling for u 3 per cent. bond re-
deemable at pleasure. No Congress and
no Secretary of the Treasury could have
done more mischief tban the banks then
did; and they a do it a. any time. In
deed, n currency of United Suites notes
redeemable OF demand in coin could not
be expanded and contracted arbitrarily,
except by "A suspension of specie pay
ments, which would only occur in an
emergency like that Of the late civil war.
10 speak, rs Senator Sherman does. Of
Government bonds as the foundation Of
banking, is talking sheer nonsense. We
have had banks, we have banks now.
and we shall have them always. whether
they are allowed to issue circrl2:iac
notes or not.
The truth is thas, whereas the Nation
al Banks were originally crcatcdto make
purchasers for Government bonds. il is
now proposed TO create bonds for the
purpose Of making National Banks.
The thing is preposterous, and Congress-
men and others who advocate it commit
n serious bluudcr. The country Is no
longer in need OF the National Banks.
mud wall witness their departure without
u pang."