The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1885-03-18

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this is added the issue of notes designed
to form part of the money of the
country, the banks go entirely outside
of their proper and legitimate business.
They have, when endowed with this
power, simply received boon from the
government to which they have prop
erly no right whatever, and which
should never have been extended to
them, except on the clearest proof of
its advantage, not to the banks alone,
or chiefly, but to the people.
But with the narrow Interpretation of
the constitution which held that the
power to " coin I" money did not in
clude or imply the power to issue a
paper currency, coupled with the refusal
to the states of similar right, no way
was open by which paper currency
could be provided, otherwise than
through private banking corporations.
The old United States Bank was estab-
lished in order that the national gov
| eIuIlcuJ, III dSSOCldtlOu Will pllNdtc
capital, might do that which it was held
unlawful for the government to do
alone. There was not, never has been,
and probably never will be enough gold
and silver in any country to make the
money required to transact its business,
especially if it be to any great extent a
commercial country. Paper money,
therefore, is an absolute necessity of
our trade and government.
The war destroyed other things be-
sides slavery. 1t broke down or broke
through that Interpretation of the con-
stitution which limited the sovereign
powerto the mere" coinage" of metallic
money Its absurdity became manifest
in the light of the nations needs. The
money did not exist to pay and equip
troops, and provide for all the multi
form expenditures of great war.
Treasury notes had to be issued, in vast
sums, for that purpose. But the old
ideas still largely retained their power
over mems minds, and though the gov
eminent as "military necessity !"
made these notes legal tender for pri-
vate debts, it refused to make them a
legal tender for duties on imports. 1t
thus discredited its own money, and in
connection with fatal timidity in re-
gard to taxation, prepared the way for
an inevitable depreciation of its paper
issues. A taxation boldly adequate to
the emergency should Gin connection
with the sale of bonds) have called in
this paper with so strong current as to
prevent its depreciation by imitation,
and no distinction should have been
made between it and the metallic coin
age, as tender to the government for
any form of taxation. The war cost us
more than twice what it should, because
of these blunders. 1t was perhaps i'm
possible that plumbers should not have
been made, under such extreme and
novel conditions, but they ought now
to be recognized as blunders, and of the
most serious kind.
A practically unanimous decision of
the supreme court has now settled for
ever the full legal tender quality of the
national greenback currency. 1t is
everywhere throughout the country the
legal equal of gold and silver coin.
But we have, along side of it, another
currency, well secured, but not a
, legal tender,-the national bank-notes.
Ought they to continue to exist? 1t is
plain that the only possible reason why
| they should so continue ought to be
found in the requirements of the people.
? That they are profitable to those by
whom they are issued is no excuse for
their being. The whole question is,
, care they needed?"
: We believe that the more this ques-
ton is studied, the more evident it will
be to the impartial enquirer that they
are not needed, - that the national
greenback currency is alike the best
: the safest and the cheapest paper
money that the people can have. To be
the best it must be legal tender The
bank-notes are not that, and never should
be. To be the safest it ought to be re.
deemable directly in coin. This the
bank-notes are not, and lawfully cannot
{ be. To be the cheapest it must pay nc
, tribute to any private persons. Thai
the bank-notes do, and heavy one
, yet utterly unnecessary. We can ex.
cuse the establishment of the nationa
, banks, as being what they were claimed
to be in their origin,-a necessity of the
) time, in order to make a market fol-
bonds. We ought to and must fulfil
= every condition of their establishment
= and pay all we owe to these corpora
: tons, even to the "pound of flesh.
t But we have right to discuss the pro
e priety of allowing them perpetually t.
e furnish any part of the currency O
: the country.
d 1t is great pity and great loss t.
: the country that in so many ways thu
e wisdom and the discretion of our ma
a tional congress has been discredite'