Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-12-09
THURSDAY. ...DECEMBER 0, 1886.
Mr.. Manning-G reenbacks-Bank
Notes


In his annual report the Secretary OF the
Treasury recommends the gradual pur-
chase and payment Of $3i6, 5sl, 0i6 Of what
he calls outstanding prsmissory notes OF
the United States, issuing silver certificates
In their room, and gold certificates II need
be, without contraction OF the present cir
cuiatiog volume Of the currency.
These outstanding promlssory notes"
arc what other persons call greenbaeks.
These gTeenbacks are. we all know, not
money, but propi.es TO pay money. For this
reason, Mr.. MANNING would have the sur.
plus money In the Federal Treasury used
in buying them up. Now, 1t would puzzle
Mr.. MANNING TO tell why the circulating
notes Of the national banks should not be
retired for the same reason-namely. be-
cause they are not money. but merely
promises TO pay money. The greenbacks
are 1t par with gold. They may be called
a debt and are debt, but as 1t Is debt
upon which the Government pays no in
ferest, the country loses nothing what
ever by allowing the greenbacks TO
continue in circulation. II was hardly
necessary, therefore, for the Secretary to
challenge the Greenbsckers to renew the
fight against the national banks and in favor
OF q Government circulation. Instead OF
being willing TO pay these rpro missory
notes." the Greenbackers would deprive al
national banks Of the privilege Of issuing
circulating notes. and cause the Govern.
ment TO issue several hundred millions OF
greenbacks In addition to those now in cir.
culation.
But the Secretary OF the Treasury takes
pains to say that be would have no con-
traction Of the volume Of the currency and
therefore would issue silver certiti Gates land
also gold certificates II need be) TO perform
the Office In our national financial system
now performed by the treasury notes or
areenbacks. We are by no means sure that
these gold certificates and silver certificates
are not to be the currency Of the future. 1t
Is said that the public will not have
the silver dollars, and that therefore 1t Is
unwise to continue their compulsory coin
NSts Dut tue iutt tuai tlt l'ubiN tuhC VIC
mere representative Of the silver dollar
Ipsets that theory. Besides, there are almost
as many millions OF dollars OF gold certif-
Gates In circulation as OF silver certificates.
The reason is the same In both cases. The
people do not want coined money. They
prefer the light paper currency. Krbw-
Ing that the silver and the gold
are in the Treasury, and that their
certificates may be redeemed In money
at any time, they show their conf
dence in the Government by using the
certificates rather than the coin. II the
credit OF the Government were TO begin TO
run down, the condition Of things would
at once change, and everybody would pre-
fer real money gold and silver and the
certificates would refuse to remain In circu-
lation. They would be rushed into the
Treasury. The masses know what real
money Is when II comes TO the test.
There is one objection at least to the
scheme Of substituting metal certificates
for national bank notes. We do not alluie
now TO Mr.. NASNISG's scheme. His would
retire the greenbacss only. But il these
are retired, the national bank notes will
not long be allowed to remain out. The
objection Is that 10 compel the national
banks to surrender their circulating notes
might result In driving these banks out Of
the national banking system altogether. In
that event, the people might not have as
much confidence In their banks as thew
ought to have. At any rate. there would,
or certainly might, be established as many
different sorts Of banks as there are States
in the Union. This country has for more
than twenty years possessed what has been
sty led "the best currency the world ever
saw There ought to be extreme caution
used in substituting new one.