The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1891-06-05

: that 1t cannot well be managed by prl
vate enterprise.
As a rule, it is much more expensive
for the government to do any kind OF
work than it is for private individuals,
The capitol of the State of New York
has already cost the people of that State
over twenty millions of dollars. The
same building, by individual manage
ment, built by men working for them
selves, could have been completed in
just as good style for less than half that
sum. | do not believe it would be pos
sible for the general government to man
age the railroads of the United States
anywhere near as cheaply and as well Us
they are being managed to-day by the
lprivate corporations which own and con-
troll them. This may not be true to any
great extent of the telegraph lines.
As against this theory, am well aware
that our great system of mail service is
constantly quoted. | am ready to admit
that this service, taken as a whole, may
be named as a great success 1t is by no
means clear, however, that private en-
terprise would not have done the same
work just as well with much less ex-
lpense. True, we send our letters and
packages at low rate; sbut we send
them ut lower rate than it costs the
government. In the United States, the
receipts of the mail service, with the eX-
ception of very few years, have never
been sufficient to pay the expenses of the
service. Several hundred millions of dol
lars have been drawn from the general
treasury to meet the deficiencies of that
department. Several hundred millions
more have been drawn for the purpose
of building pOstOtfice buildings which
have never been charged up TO that ac
count. But the carrying of mails is
matter of so much interest to almost
every citizcn in the United States, and
must be done over all kinds of public
highways, that am inclined to think
| hat it is, on the whole, best that it
should be done, as it now is, by the gen
eral government. | am not sure, if the
telegraph business could be combined
with the postoilce ser yice, that the same
might be said of that business. But
even admit that and it by no means fol-
lows that the government should also
run the railroads.
In reply to your last question, will
say that the length of tins article pre-
vents very full answer Within a few
weeks | hope to publish my views as to
the utility of the National banks. in
which this subject will be more fully dis
Cussed.
The issuing of paper money or notes
payable on demand was never resorted to
by this nation until it was done as a war
measure. The present greenbacks would
never have been in existence had not the
necessities incident to civil war re-
quired them. They are simply demand
notes of the United States, which the
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presentation. Their redemption and
issue compels the government to engage
in what may be called species of bank
ing business. That is another kind of
work which doubt the prOpriety of the
government doing.
At present the National banks can not
afford to accept the issue of National
bank bills. Government bonds are at so
high premium that no National bank
can buy and hold them for security and
receive only ninety cents of circulation
for each one dollar of their face value,
and then make a single cent out of their
circulation over and above what could be
made by lOaning money with which the
bonds are purchased. That this is true
is demonstrated by the fact that over
one hundred millions of National bank
circulation have been surrendered within
the last ten years.
1t seems to me almost nonsensiCal that
the government should be expected to
issue its notes, payable on demand to
meet what is called the needs of indi-
yiduals. Our Constitution provides that
the National Government shall have en-
tire control of the coinage of money.
That is wise provision, but that is sim
ply done so that the people may know
how much pure metal there is in each
coin. That is an entirely different mat
ter from issuing promiSsOry notes.
In very few years the entire bonded
Indebtedness of the United States will
be paid. When that is done what neces-
sity will exist which can require the
government to issue demand notes? The
greenbacks were issued for the purpose
OF defraying the necessary expenses of
the government. Government bonds
were issued for the same purpose. But
at that time our expenditures were very
much in excess of our revenues. To-day
the revenues exceed the expenditul es
1t seems very clear that the Nation will
be able to meet this bonded indebted
ness rs fast as it becomes due. The mo-
ment the bonds are all cancelled then
there will be no more interest 20 save
If more greenbacks We're issued the gov
enment could not compel the holder of
the bonds to surrender them until they
are due. They will all mature in few
years and will be paid in business-like
way. With the receipts of the govern
ment in excess of its expenditures, what
object could be gained by the govern
ment issuing demand notes? In the end
it would reduce itself to the simple prop
OsitiOn as to whether it would be wise
for the Nation to issue circulating me-
dlum for the purpose of lOaning the
same to individuals. In other words, if
there had been no civil war there would
not be in existence to-day single green
back or treasury note payable on de-
mand. Suppose that were the condition
of affairs to-day. Would you then con
slider it wise for the government to issue
single dollar of such money? If so,
for what purpose? If it would not have
been wise for them to do so except rs
war measure, then why should we not
get back as quickly as possible to the
point at which we started?
The modern attempt of few men to
have the government embark in the bust
ness of issuing notes payable on demand
for the purpose of loaning them to GER
tain individuals on time, is to me so WIS.,
iOnary and preposterous as hardly to
need any notice. Yet it seems to me
that the result involved in your question
must end in precisely that kind of busi-
ness. 1t appears very clear that the
whole people THAT is the general govern
ment) have the right to borrow the
money or even issue demand notes in or
order to meet the imperative needs of
the government. But this does not i'm
ply their right to either borrow money
or issue such notes for the benefit of
individuals. The issuing of silver and
gold certificates is an entirely different
business from the one your question in
wolves. In the case of those certificates
the government receives the gold and
silver with which to redeem them, and
acts simply as a custodian Of the pre-
ciOus metals. That may be a great con-
venience to the people and a wise plan,
but that is very different thing from
issuing certificates on any kind of prop
eTty which is not used as money among
the nations of the world.
In conclusion, my opinion is thatsome
plan should be devised so that the bank
ing business of the country should all be
done by banks, none of itby the general
government As rule the people in
their individual capacities will manage
this variety OF business in any country
much better than it can be done by the
general government. r. G. HoRR.
"Are not Lincoln, Grant, Sherman,
Sheridan, Porter, Seward, Chase, Stan
ton, Sumner and their fellows historic
figures worthy TO rank with the elder
revolutionary group, dear to all Ameri-
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