New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-12

the banks instead Of the Treasury a. our ulti-
mae nv resource? Nobody ever has doubted or Is
sxey TO doubt the solvency of the United
states- That of all banks and of all private
institutions Is more or less uncertain. with
the gold in the Treasury the failure OF so MANY
oanks within the last few weeks some of them
ARG ana important has scarcely produced
p.'Sep.loie impression upon the money market
or upon public confidence II the integrity OF
me me circulation had depended upon gold In the
nanus OF the banks themselves. II Is hardly pos
sioie mat such failures could have occurred
Witnout disastrous results. The conclusion is ir-
lss.s'ioIe. The fact that there is in the hands
Vi tue people, forming the basis OF all the cur
~ - III circulation and of the whole system
-, nhanciai credit, en- issue OF notes. redeema-
PIE IN gold by the Government itself. has been
a mighty elementof strength in which is no at
tribute Of weakness at all
Inere other features ~ tho syster that
are important. 1t was the obligation to redeem
.ne greenbacks which led 70 the formation OF
me eoio reserve. Without that il would not ex-
Isl, TOT there would be reason for its exist
ence 1t was to keep this reserve intact that
power was given the Government to issue
ponds and borrow money. Without that pro-
vision in the Resumption act the Treasury
would be to-day empty and its obligations dis
honored. The endless chain" by which green
backs, after being redeemed were paid out
again. has been the subject of many adverse
remarks but that endless chain" alone fur
nlsned the means by which the Government
met its expenses. If it could not have paid out
the redeemed greenbacks it must have paid the
gold in the reserve itself. and the last coin
Woulo long ago have passed over it's counters
and left the Treasury vaults empty Perhaps
these facts do not bear directly upon the ex-
pediency of the greenback issue but they are
oertalnly parts OF the system and must he con-
sldered in connection with H. Had there been
no greenoacks. ii would have been necessary TO
give the Government power to borrow money
lot lts current expenses. for they could NOT
otherwise have been met
One other and very important confederation
remains to be treated As has been stated the
goid reserve owes it's existence to the require
Hent Tor redemption of greanbacks II they
should be retired it would cease TO exist The
treasury would then be only a mechanical
asency Tor the receipt and disbursement OF
llnus The Government would have gone
out, as the saying is of the banking bust
ness 1t would have no further obligation tow
ara the currency and function to PERFORM
It's paper issues would be only gold certificates
ana silver certificates not INTERCHANGEABLE and
the silver certificates would be neither directly
nor indirectly redeerable in gold There would
De no gold with which 70 redeem them except
what might happen TO come in In the ordinary
course OF business. The banks might redeem,
their notes in gold as long as IL was convoniant
out as thev are only required to provide that
which Is legal tender would have the right 10
IA! back at any time upon silver certificates
ard the holders OF these certificates could ex
cha;'Se them for nothing but silver There
stands on the statute book a declaration thar
tne United states Government shall maintain
TIE parity Of gold and silver but with the
t,eenbachs retired and the gold reserve abol-
,,snea the ability TO do this would be gone How
long would II he before we should find oursoIras
VI on silver basis. with the gold driven out ~
the country? Surely nothing could prevent but
the establishment Of a new gold reserve with
ne" provision for the redemption Of silver GER
ti1cates in gold. and that would be noting
else than return TO the ereerback system
"i pnut, tne sreenbacks, john !. PLATT