The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-08-13

was concerned, it would be equal, in
! EeRrH respect, to gold and silver,
and superior in many, particularly in
regulating the distant exchanges of
the country. Should, however, a de-
mand for gold and silver from abroad,
or other accidental causes, depress it.,
temporarily, as compared with the
precious metals, it would then return
to the treasury, and as it could not be
paid out during such depression, it's
gradual diminution IN the market
would soon restore it to an equality,
when it would again flow out into the
general circulation. Thus there would
be constant alternate fluX and reflux
into and from the treasury between it
and the precious metals; but if at any
time a permanent depression in its
value be possible from any cause, the
only effect would be to operate as a
reduction of taxes on the community,
and the only sufferer would be the
government itself. Against this its
own interest would be a sufficient
guaranty.
"Nothing but experience can deter
mine what amount and of what de-
nominations might be safely issued
but it may be safely assumed that the
country would absorb an amount
greatly exceeding its animal income.
Much of its exchanges, which amount
to vast sum, as well as it's banking
business, would revOIve about it, and
many millions would thus be kept in
circulation beyond the demands of
the government. 1t may throw some
light on the subject to state that North
Carolina, just after the revolution, is
sued large amount of paper, which
was made receivable in dues to her.
1t was also made legal tender, but
which, Of course, was not obligatory
after the adoption of the Federal con-
stitution. A large amount, say be-
tween four and five hundred thousand
dollars, remained in circulation after
that period, and continued to circulate
for more than twenty years at
par with gold and silver during the
than being received in the revenue of
the state, which was much less than
500, 900 per annum. / speak on the
information of citizens of that state,
on which can rely.
"But, whatever may be the amount
that can be circulated, hold it clear
that, to that amount it, would be as
stable in value as gold and silver it
self; provided the government be
bound toreceive it exclusively with
those metals in all it's dues, and that
it be left perfectly optional with those
who have claims on the government
to receive it or not. 1t will also be
necessary condition, that notes of too
small denomination should not be
issued, so that the treasury shall have
ample means to meet all demands,
either in gold or silver, or the bills of
the government, at the option of those
who have claims on it. With these
conditions no further variation could
take place between it and gold and
silver, than that which would be
caused by the action of commerce.
An unusual demand from abroad for
the metals, would, of course raise
thema u little in their relative value.
and depress relatively the govern
ment bills in the same proportion,
which would cause them to flow into
the treasury, and gold and silver to
flow out; while, on the contrary, an
increased demand for the bills in the
domestic exchange would have the
reverse effect, causing, as | have
stated, an alternate fluX and refluX
into the treasury, between the two,
which would at all times keep their
relative values either at or near par.
"NO one can doubt that the fact of
the government receiving and paying
away bank notes in all it fiscal tran
sactions, is one of the principle
sources of their great circulation; and
it was mainly ON that account that the
notes of the late bank of the
United States so freely circulated
over the union, L would ask
then, why should the government
mingle it's credit with that of private
corporations? No one can doubt but
that the government credit is better
than any bank-more stable and more
safe. Why then should it mix it up
with the less perfect credit of those in
sttutions? Why not use it's own credit
to the amount of it's own transactions?
Why should it not be safe in it's own
hands, while it shall be considered
safe in the hands of eight hundred
private institutions scattered all over
the country, and which have no other
object but their own private profits, to
increase which, they almost constantly
extend their business to the most dan
gerous extremes? And why should
the community be compelled to give 6
per cent discount for the government
credit blended with that of the banks,
when the superior credit Of the gov
ernment could be furnished separately
without discount, to the mutual ad-
vantage Of the government and the
community? Why, let me ask, should
the government be exposed to such
difficulties as the present, by mingling
it's credit with the banks, when it
could be exempt from all such by
using by itself it's own safer credit?
1t is time the community, which has
so deep an interest in sound and
cheap currency, and the equality of
the laws between one portion of the
citizens of the country and another,
should reflect seriously on these
things; not for the purpose of OPP
pressing any interest, but to correct
gradually disorders of dangerous
character, which have insensibly, in