Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-01-08
FRIDAY........JANUARY 8, 1886.
;reenbacks VS.. Bank-Notes.

Our courteous contemporary Of the
Petersburg Inder-Appsal allows itself
to bs caught asking the following ques-
ton:
"Now, We acknowledge that we were
dsnsely ignorant on this financial ques-
ton, but. in the name of John Sherman,
Daniel Manning. and all the other great
and little lights in the financial frma-
ment, who ever before heard of clear
isg-houss certificates being "lawfal
money!"
We need not comment upon that
question further than to quote from
the Rerised Statutes Of the United
States. After providing in section
SOL that every notwithstanding ASSOC
eistion in Albany, Boston, New York,
Philadelphia, &c. &C., shall at all times
have on hand in lawful money Of the
United States an amount equal to at
least Is per cent. of the aggregate
amount Of its notes in circulation and
its deposits. the statute goes on and in
section 5l92 provides as follows:
Clearinghouse certificates, repre-
senting specie or lawful money specially
deposited for the purpose, Of any clear
ing-house association shall also be
deemed to be larfM money in the pos
session Of any association belonging to
such clearinghouse holding and own
ing such certificate within the preceding
section"
As the rest Of the Inder-Appeals
article Is based upon the assumption
that in the articles we have written
upon this subject we were talking about
the relative values Of bank notes and
gresnbacks nor, whereas that paper
well knows that we have always con-
coded that so long as peace shall pre-
vail Treasury notes will be as good as
bank notes, we need not undertake to
set that journal right on that point.
1t certainly knows what our contention
was and is. The law already provides
that even in times of peace the United
States shall have ga paramount lien !"
Upon sal" the assets of bank for
the benefit Of the note-holders in case
the deposited bonds fail to sell for
enough to reimburse the United States
the amount expended in redeeming
the circulating notes of the bank; and
it does not strike us as at all probable,
nor even possible We might say, that
Congress would in case Of war allow a
bank to redeem its notes in depre-
ciated currency Of any sort. Besides,
the right to have the notes redeemed
rests with the note-holder, not with the
bank; and in the case supposed by u.s.
the bank notes being at par or nearly al
par with gold, and the bank having
abundant assets to redeem all its notes
even in coin. it does seem to us to be
self.eyident proposition that the bank
notes constitute better currency thar
the greenbacks.
Look at the following figures. W.
last week cited the case Of the FRS
National Bank Of this city. Now vi
will call attention to the latest state
ment of our Planters National Bank
which shows that its NEWFOUNDLAND
notes outstanding amount to enl.
$4,000, whilst the bank actually ha
surplus fund Of 100000, and undi
vided profits largely in excess of tn
amount Of its outstanding notes. Tn
only answer the Index-Appeal make
TO these figures is that the bank note
are redeemable only in greenbacks.
We have said heretofore in discuss
ing the silver problem that in case G
var between the United States aud
pcwsrful nation or nations, silver do
lars would soon be preferred to greer
backs. We haven't doubt that GU
statement is true both as to bank note
and silver dollars. When danger draw
nigh, real money will always DO pre-
fsrred. and next to real money the psps
currency that is best supported by RET
assets.