Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-08-25
wEpNEsDAY...AUGUST Is, 1886.
The Coming Currency.

III tbc Puoho wv"
at /. substitute must be found for the
pyesept national-bsnk currency. IL
would be an easy matter. OF course LOT
the Government 10 issue greenoacks
enough to supply the deficiency whicn
would thus be caused in the volume OF
currency. But greenbacks are not real
money, nor based upon real money
They are misunderstanding notes.
and cannot safely be issued in too great
profusion. Besides, inasmuch as the
United States Government is liable at
apy time to get into war, the currency
Of our country ought not to consist too
largely Of notes which would begin to
depreciate almost as soon aswar should
begin.
A return to the old State-bank sys-
tenn is talked Of in Georgia. But we
take il for granted that that system will
never again lift its head in this country.
A currency that is not as good in one
State as another will never again be
tolerated. We are nation now, what
ever the fathers of the republic intended
us TO be; we have national govern
ment, and we must have national cur
Tency.
The note. holders fthe national banks
are now secured by deposits OF bonds.
1t has been proposed to secure deposit
tors by devoting to this object the tax
on the circulation Of national banks.
w. w. FLANAGAN, Esq, cashier OF
the Commercial National Bank of New
York, has shown clearly that that tax
would be more than sufficient to pay all
losses to depositors that would be likely
10 occur from the failure Of national
banks. From 1865 to 18S4-twenty
years-the total ofproved claims against
insclvent national banks was 3S,479,-
$40, and the claims remaining unpaid
only sl4,776,659, whereas the tax on
circulation of national banks amounted
to s,356,99l. These figures demon
strate, therefore, that that tax would
be more than enough to pay all deposit
TORS were il devoted to this object.
Why, then, may not this tax be sub
stituted for the deposit Of Government
bonds as . security for the redemption
Of circulation? 1t yielded in twenty
years twenty millions Of dollars more
than the sum of all the claims proved
against insolyent national banks.
Inasmuch as the note-holders have
never lost anything by the failure OF
national banks, it follows that the
boye.nsmed sl4,776,659 Of unpaid
claims include all the losses which
the public have sustained from thai
causs--forty-three millions of dollars
less than the tax on circulation yielded
1t is highly probable, therefore, no
to say absolutely certain, that the ia,
referred to would be sufficient to cove
all losses to the note-holders that woulC
result from the failure Of nationa
banks.
To adopt this plan would be to stea
Mr.. FLANNAeAN's proposition, an'
use it for purpose entirely differen
nom that for which he intended it Il
be used but be would have to b
satisfied, rs it is conceded thst it is NOR
important to secure the nots-holders--
that is, all the people everywhere
than to secure the depositors.
But We are inclined to the belief thu
the coming paper currency is to consl'
Of notes or certificates issued by u
Government upon actual deposits OF go
and silver bullion and gold and siiv'
coins. Who could desire better Gu
rspcy9 As the people are not afraid
trust the Government with the bon'
held for the redemption Of the nations
bsnk-no.es, certaioly they would not
afraid to trust the same Governme
with the gold and silver to DO held
The redemption Of the notes or cert
es.sn based upon those precious meta