Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1886-02-18

any have vet seen or heard lWould,
however, amend the Law so that no GER
tificate shoulibe ola higher denomina-
ton than 500, and not more than 25
per cent. Of the amount outstanding at
any time should be Of determinations
higher thon $50. The legai-tender notes,
too, are attacked. It seems as though
every form of currency which costs
nothing and enriches nobody is con-
demned. -9-5 --1- = sAL
1t is assumed that the Government
has no right to use its own credit or to
furnish any part of the currency the
people need. Iegal-tender notes are
denounced as forced loan, as rag-ba-
bies, shinplasters, indeed every oppro-
bious epithet has been hurled against
them by those who insist that they
must be vested with the sole right to
issue currency to loan at profit to
dictate through their organization how
much or how little 1t Is most profitable
to them to keep In circulation. But
the people and their representatives
have so far sustained the greenbacks,
and while they have always been repu-
dated to the extent they could not be
legally paid at the custOm-houses for
duties on imports, and that is the law
now, over SAT, ,000, 900 Of them were re-
ceived for duties last year In New York
alone by executive orders in plain viO-
lation of law. The majority Of the Sem
ate refused last year to make them re-
ceivable for duties, and yet we permit
SAT 200, 900 of them to be SO received.
/ have q bill now before the Finance
Committee making 1t legal to receive
them for customs dues, as believe they
ought to be; yet insist that no execu-
tive officer ought to be allowed to do
anything in violation of law; or to be
placed in position in which he feels
authorized or compelled to disregard
it.
Congress by the act Of May 81, 1878,
(see Statutes at Large, volume 20, page
87,) made an effort to retain what was
then left Of the legal-tender notes, and
to preserve them i'm such shape they
would be currency in the hands of the
people. We provided, In substance,
that whenever legal-tender notes are
received at the Treasury from any
source they shall not be retired, but
shall be reissued and paid out again
and kept in circulation, and that new
notes of the same denomination ofthose
returned because too much mutiliated
for use shall be issued in their stead. 1t
Is obvious that Congress did not intend
to allow any increase of the denOmina-
ton of the legal-tender notes above
what existed when that act was passed,
vet the table on page 20 of the Treasur-
er'sz report, shows that bills of the de-
nomination of $500 have Increased in
the last year; nearly $40, ,O0O, 600, while
those of smaller denominations have
been proportionally decreased.
There can be but one purpose in this
attack all along the line OH everything
except gold and national bank notes,
and that is to transfer to the holders of
our bonds absolute power over the cur
rency, which means over the business
ofthe country. 50 Fl fg \
The report of the Comptroller of the
Currency develops that purpose, per-
haps, more plainly than the others.
After insisting that Congress should re-
peal the tax on circulation, give up the
profit made on the lost bank notes, or
put it into a safety fund with other
things for the benefit of the banks, he
adds, on page Is:
Such legislation would have the effect
of maintaining bank-note circulation,
and prevent Its being superseded by
Government issues, which an authors
ty as high as Alrzaudcr Hamilton has
said .'ares Of d nature so liable To abuse,
Lit may even be affirmed SO certain OF be-
ing abused that the wisdom of the Gov
ernment will be shown in never trust
ing itself with the use ofso seducing and
ln nvnoripnnnt "
assume that it is too clear to admit
of debate, no matter what Mr.. Hamil-
ton or anybody else said, that a circulat-
ing note, in any form,properly secured,
is as good when issued by the Govern
ment as like note would be when !
issued by corporation created by the |
and secured by a Govern
ment bond; and hardly anybody but |
the Comptroller or n bank attorney
would venture assert that the Secretary |
of the Treasury is not likely to be hon
est and careful of the public interest in |
and keeping the necessary
of circulation af1oat for legiti-
mate business purposes as bank presi-
dents would be, who are under no obli- |
cation to consult the public welfare,
but, as the private interests Of their
demand. may contract or
expand their issues as the course or the |
other best subserves their private ends
regardless altogether of the public veal;
indeed, they are apt to be enriched when
they can most surely oppress the mas
ses.
Yet, in the face of his claim that all
other circulation is unsafe, the Comp
troller shows that the decrase in nation
al bank circulation in the last three
years amounts to over $48, ,000, 900, and
says that it would have decreased $25,-
100000 more if the Secretary of the
Treasury had not come to their rescue
by refusing to use the money at his
command in the purchase of the per
cent. bonds on which their circulation
is based; in other words, the people |
have lost over So, 900, 900 of interest, and
the bankers have made $6,000.0OO on |
interest by the operation. The Comp
tr0ller shows very clearly why the |
are so anxious to get clear |
of the silver dollar: they fear that the |
premium on their bonds will fall if they |
are paid III whole or in part silver. But
he stated the whole case so clearly that |
I will read. on page Is of his report:
1t will be seen that the bonks held on |
/, 1884, $155, ,604, 400, and on |
/, 1885, $l38, 1920, $50, ofS per
cents. under the act of July II, 1882,
payable at the pleasure of the Govern
lnent. The Secretary of the Treasury,
during the year ending November l.,
1883, paid $105. 1884, ,450, and during the
wear ending November l, 1884, $105,-