New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-11-30
THE LEGAL-TENDER NOTE.
An ARGUMENT FOR THE GRADUAL Abo1dI1o'
OF NATIONAL BANK CURRENCY.
TO IN, Ldffor ofThe Trfbune.

An ARbUMENT FUR Iht phhbthh
OF NATIONAL BANK CURRENCY.
10 the RAZOR Of The Tribune.
Sir: Until we have an abundance Of the preclo",
metals both gold and silver. in our ch""i@''s
medium there IS an absolute necd Of some paper cur
rcncy The yearly additions to the amounts OF III.
precious metals retained by OF the product III VI"
mines indicates tie safe maximum Of the wih'ra"N
of paper. Our foreign trade is at or near an oqu'
lbrlum between exports and imports AMI p'onis'
TO remain for the present Certainly we arc "''
10 lose coin by export. - -.
The first paper 10 be withdrawn ia and shoui" W
fhe National Bank circulation which innres 10 INC
benefit Of a single class oil the people; namely "a.
stockholders of tie National banks. This pr
Of Withdrawal is already going and as the 'h,',
States bonds By which they are secured a'e an
in By the United states Treasury and are surrenu'
by the banks to secure the present proht q" Wv
bonds. the process win continue until at iorn 81
circulation finally disappears The result VIII -.
simply that the National banks like other banks puO
or private Will be confined TO their normal anu pP'
business of discount and deposit
As The bank note circulation disappears the IfrA'
urv certificates OF gold and silver are taxing l"c'
place in the circulating medium. Untu th'- prooo',
Of gradual and natural substitution be arcomphS1cu
and the entire circulation be of National issue lega
tender notes and coin certificates the dscussou VI
tho lccaltendcr note retirement is premature
li'h""'-
when the legal-tender note Will be retired AiSV
Their gradual redemption viii directly absorb SUCH
surplus revenue as tariff legislation may eaNe "
In the interior II is moot question whe'her We ".
not strong enough already in gold and silver GO nasO
10 admit OF the Treasury stamping even legai-
notes with the engag ment " Pays able IN soll a. o.!
s,bTras,,ry of the United States The Treasury
reserve kept for guarantee OF these notes Is cera'
ADEQUATE to redeem all that might be presented
that there Is small probability of. any demand lor
rcdemption may be Judged from the fact that by une
last statement of the Controller Of the Currency mere
vere outstanding over Sss 600 900 Of National bank
notes for which the bonds had been surrendered pu'
the holders of which had not surrendered
II is a known law Of finance that a paper Issue
unied 10 the absolute demand Of people for the aalS
transactions of life and never be presented for re-
dominion Thl, IS the law which governs the Issues Q"
tbe Rank OF England. 1t may be stated in the ioru
Of an axiom-the minimum Of circulation .s the max
mum OF lssue-safe issue.
The time was as Mr.. Ga!latln said, when " specie
was foreign product and substitute was neces
sary but the United States is to-day specie prodao-
ing country and II behooves TO use it 10 our ad-
vantage 10 rs utmost limit Mr.. Gallatin also N-
marked that specie followed wealth." and does DOL
precede IL. Us abundance is an evidence OF wealth
The use OF certificates OF deposit OF specie whether
coined or in bullion, Is the use Of specie ITSELF ana 'n'
better because not subject 20 loss on abrasion.
Treasury do not differ fOm the Bank OF England no'es
issued beyond the limitations of law, which cohhhes
the issue on The faith OF the bank 10 - ed sum ana
rc0ui,es a deposit Of gold for every note lssuea We
vohd that fixed sum. The limitation was bastu
on the minimum OF circulation In a series OF year.
The relations between the values Of gold ana slNg
must be occasionally determined and reg LATED ~ Jaw
This f. delicate matter Iht 'nl'oA
states have in the Treasury pretty sum,
I,ntween thirty and forty million dollars inc Its,ls
Of the difference between the price pald LOT SLIT
cofnage and the value OF the dollars coined ana pal
oIf a. tLe nominal dollar value IL VIII DE- heNher
novel nor a difficult process 10 call IN these sllNci
doIlars when they prove over-a5undant as token
c,,rrcncv and 10 recon them AZ value equal "a
tbat ~ the gold dollar Thus the rel"Ive value OF
he cold and silver coinage would be entirely restored
and The Treasury relieved OF part Of rs surplus
With legal tenders stamped a. payable ID COIN OF
demand and silTer dollars made as good as Roio'
the most captions may be content.
There IS no instant demand for the legislation which
the recoinage OF silver would> require, and no gooc
reason why Congress should be charged with ms
subject al present. The present AGITATION ~ II II,
the public press seems to spring from the Nariona
hanks in the hope that the outcome may be a. con
,inuance on some new OF the National banhn0te
circuIaron. The agitation may disturb our financial
system az all agitatons do all financial systems Du
q viii not serve the National bank circulation. I'M.
form OF currency has served tho country and served
II admirably but I'm the changed conditions OF The
country and In the amount OF gold and silver al hand
Is no longer necessary equitable substitute, and
bound 10 gO-and is going; ~ ,- -,r--,,r>,e
Newport Nov. 90 I6S0