Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1897-03-25
Currency Sophlstr,es.

| Sans showing that there could moi
have been . run on the reserve if the
redeemed greenbacks had not beer
taken TO pay the ordinary expenditures
with the assertion that while there
was slight surplus for the fiscal year
ending June 50, 1898, there was a
large redemp ptfon of legal tenders for
that year.
1t is true that the fear of silver pay
ments occasioned some Withdrawals oil
gold at that time. But it is also true
that close examination of the Treas
ury fgureswill make different show
ing from what the 93ibane represents.
The decrease of 500, 900. 900 from the
Treasury gold in that year was not ac-
companied by a corresponding increase
of the legal tenders aud Treasury notes
held by the Treasury, but was bal
anced by the cancellation of $62, ,000,-
900 of gold certificates.
The point which all the assailants of
the legal tenders studiously overlook
is that if the redeemed legal tenders
are not taken out of the reserve to pay
ordinary expenses, contrary to bust
ness-like construction OF the laws,
they are really retired until some one
wants them badly enough to give gold
for them. That is the unassailable
logic of the policy of maintaining the
present system, with the obvious and
necessary provision that the reserve
shall be fund by itself. and that re-
deemed legal tenders shall stay there
until reissued in exchange for gald.
II the people do not want the Treasury
notes the law provides the means for
redeeming them. But If they do want
them now, or at any future time, the
existing system. with it's one vicious
spot cured, permits them to Do taken
out by depositing gold. The endless
chain was created when the Treasury
laid hands on the redeemed notes to
use them for the unauthorized purpose
of paying the shortage in ordinary
operations. With that practice stopped
the endless chain is completely broken.
Whether the people want legal ten
ders or not is sufficiently proved by the
manufactured outcry against this COM
mou-sense and simple amendment. IF
the assailants of the legal tenders were
certain that the public did not want
them. all that they would need to do
would be to secure the adoption of this
provision and all the legal tenders
would be gradually retired under it.
But they know that the demand for
them would call them out again just
as they were called out during the past
few months siuce the election. In or
der that national bank circulation may
take their place, it is therefore de-
mauded, in rather irascible manner,
that they shall be cancelled, so that il
anyone wants them badly enough to
give gold for them he shall not be able
to get them.
One new argument offered by this
class is reproduced by our Chicago CO.
temporary as follows:
They (the greenbacks) have gone
of fVboy baro
only bankers and capitalists can get at
them-in vaults and safes. They make
their appearance only when gold is
needed for export or boarding. They
are stormy petrels, and when they be-
gin to wing their fight from the banks
to the Treasury business men begin to
be disturbed.
This argument that the banks hold
all the legal tenders and can break the
reserve when they choose has been
rather hardly worked OF late. Its ex-
act relation TO truth may be shown by
a few figures. The Comptroller OF the
Currency's report shows that on July
/, last over 500 banks. including
practically all the national banks and
over 2. 900 other banking institutions,
held $l23. 900, 900 of Treasury notes
aud legal tenders, of which but $780,
O00. 900 was held in New York. Their
holdings have increased since then,
largely because their business needed
legal tenders SO badly that immediate
iy after the election they besieged the
Treasury for the privilege OF exchang-
ing gold for them. This last fact is
complete answer to the above bugbear.
Finally the Tribune asserts that un-
der the plan which it urges The safe
fnational bank notes will replace the
dangerous (rreasury) notes" The ma
tional bank notes have the faith and
credit of the Government behind them,
backed by bonds to be sold for their re-
demption and a per cent. redemption
f.lnd for immediate purposes. The
Treasury notes have the faith and
credit of the Government behind them.
backed by power to sell bonds for
their redemption and reserve gener-