New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-20
-FOUR PARTIES IN MONEY.

| Attention is called by POpulist journals TO the
speeches Of various advocates of greenback re-
tirement and it Is plainly inferred that the real
object of the war against greenbacks Is 10 make
room for an elastic" and indefinitely expanding
| bank currency. This gives intense satisfaction 10
| the advocates Of wildcat State banks, who are
numerous among the Western and southern
! Populists and Democrats, because they believe,
with reason. that after retirement OF legal
tenders the opposition to National banks Will
| be strong enough to sweep away all restriction
| or tax upon State bank issues. The character
and quantity of currency then permitted would
| depend entirely upon the action of Legislatures
such as those of Kansas at the West, and Mis-
sissippi or Alabama at the South. But the OPP
posing faction of Populsts and Democrats
| while equally hostile to strictly limited and
redeemable National currency and to National
banks, looks for ''relief" only to unlimited is
sues Of irredeemable paper by the United
States.
1t has been often sad with shallow dsre-
gard of facts. that the arguments for a retention
of the National currency are In effect argu-
ments for the unlimited increase of such cur
Iency, which some Populists demand. There is
not even the semblance of reason in this claim.
eminent, with the public pledge and a large
gold reserve provided for its redemption on de-
mand and in order to make sure that this re-
dempton shall always be possible, the volume
CT such notes is fixed, and the law provides for
sales of Government bonds to provide gold in
any emergency for replenshment Of the Treas
ufy reserve. The Popullsts or more money
advocates are hostile to the gold redemption,
TO the maintenance Of the gold reserve, to the
sale of bonds for that purpose, and to any re-
striction whatever of note issues. In every es-
sential respect they demand a different kind of
note and different policy.
The Republican policy stands as the only bar
rier against unlimited fiat money on the one
hand and unlimited State bank circulation on
the other. 1t regards both as utterly unsound
and full of peril. 1t recognizes that retirement
of United States notes would leave the National
banking system an Odious monopoly in the
control Of circulation, and completely defence
less because the prejudice agains such con
troll, and against bank currency based on Ma
tiCnal credit, is resisted only with success be-
cause such banks now supply only a compare
lively small part of the paper circulation. and
serve to provide for local rather than National
wants. The fiat money men, who do not care
how many notes are issued or how cheap they
are, can easily strike hands with the State bank
people who want no impeachment TO the I'M
limited issues Of notes by local banks. and the
two united would be powerful enough TO make
an end of the National banking system also.
1t is fatal blunder, into which some men of
large experience and recognized ability have
nevertheless fallen, to assume that the wise
regulations and restrictions which States like
Massachusetts and New-York would presuml-
ably apply to State bank issues would also be
applied by all the States. No man who knows
anything of the temper of many Western and
Southern Legislatures can be so deu1ed There
is no possibility of securing safe and uniform
currency for the whole country oxcept by
rigidly the barrier against State
bank issues. But that would instantly become
impossible if the National banks should succeed
in sweeping away the legal tenders, thus sccur-
ing for themselves opportunity to supply all the
paper currency of the country and 10 increase
or decrease its VOLUME at their pleasure.