Omaha daily bee., 1889-10-22
srLrgR AND eREEvBAcKs.

SILVER AND GREENBACKS.
The proposition submitted TO the re-
cent convention OF the national bank
ers by Mr.. st. John, OF Now York, TO
which we made extended reference of
the time, fora retirement OF the legal
tender notes through additional coin
age of silver, has been disapproved by
u large majority OF the executive coun-
Gil OF the association. to which the
proposition was referred. The position
Of the council is that the retirement
of the legal tender notes IS practical
impossibility in the present condition
OF the public mind, that an increased
coinage of silver dollars of the present
standard weight and tinencss would be
fraught with danger TO our monetary
system, and that to increase or retain
taxation for the purpose OF retiring the
non-iuterest bearing debt, while the in
tcrest bearing debt remains, would not
meet the approval OF the public. The
council expressed the belief that it
would be desirable, If legal tender notes
are retired and additional paper
money is then considered advisable,
that gold certificates should be
issued upon the one hundred
million dollars of gold now held MS a fund
for the redemption of legal tender
notes rather than to disburse the coin
for additional silver certificates.
The conspicuously weak feature of
Mr.. st. Johns pan was the proposal to
retire the legal tender notes, because
in the first place it Is not necessary to
an Improvement in our currency sys-
tenn to do so, and in the second place
the legal tender notes are part
of the circulation which costs the
people nothing aud is equally safe
and serviceable with the other
parts Of the circulation. There is no
good reason why the legal tender notes
should be retired to give place to
another form of currency to provide
which would simply mean laying addl-
tional taxes upon the people. In this
particular, therefore, the view Of the
executive council of the bankers asso-
citation is the correct view. But in all
other respects the council was evidently
dominated by the anti-silver sentiment.
What is meant by danger to our none
tary system, from Increasing the
issue OF silver, is that it
would endanger the stability
of the gold standard. The obvious idea
OF these bankers is that if silver should
be coined to the maximum amount now
allowed by law the effect would be to
eXpel gold from circulation and stimu-
1afn itc To-,
should in time be brought to suspeu-
sion of gold payments and our whole
monetary system be made to rest on
silver oasis. This was the view before
the present silver coinage law was
passed, and experience has very thor
oughly demonstrated that it was
wholly erroneous. There has been no
disturbance OF the monetery system
| of the country in consequence
Of the issue Of silver because the de-
mands OF the rapidly growing business
OF the country required this addition to
the currency. Why may it not reason
| ably be supposed that the continued
| growth OF the business of the country
will absorb an increased issue of this
| form of currency?
The condition that confronts the coun-
try is this, that while there is steadily
expanding demand for money there
is a steady contraction in con-
sequence of the retirement of
bank notes, and this contraction is
likely to proceed more rapidly here
after, unless congress shall devise a
plan, which is not probable, thai will
| enable the banks to profitably issue
notes. Something must be provided to
take the place of these disappearing
| bank notes, or our monetary system will
indeed be in danger OF serious disturb
ance, as we'll as our whole commercial
| system. The most practicable way, if
not the only way, to prevent contraction
of the money supply is to increase the
volume of silver in the currency, either
by additional coinage to an extent
now provided for by law, or by the issue
of certificates representing bullion
in the treasury. 1t is necessary to ma
terial progress and to the prosperity of
the masses of the people that enterprise
shall not be checked and curtailed by a
contraction OF the currency, and the
next congress will have no more i'm
| portant matter to consider than that of
providing against any reduction in the
/ a, Af