The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-04-19
RETIRING THE GREENBACKS.

The hope which springs eternal in
the human breast was never better cX
emplifed than in the attitude of a GER
tain class Of fnauciers towards the
United States currency notes commonly
called "greenbacks. There is never
lacking voice here and there calling
for the retirement of those notes, and
various arguments of more or less
frivolity are urged from time TO time
in favor of the proposition.
Ii seems that there is about TO be
revival of the demand for the re.
tiremeut of the greenbacks, and the
argument adduccd in favor of that re-
trcment is about the most foolish of
all those that have been advanced.
Still, it is an old argument, and runs
as follows:
Some day people will learn that at the
present moment more than 800. 900 900 OF
money actually is lying Idle in the vaults
OF the treasury. This sum, which. to be
exact, Is $l50, 600, 600. really has lost all
OF It's function as money. 1t is reserve
fund in the form OF gold coin and bull
lion which is held in the treasury for the
redemption OF the outstanding green
backs. which on the first day of this
month amounted TO 1916. 6.GSl.01G. That re-
serve fund represents a loss OF Interest
to the government on $3.50, 600. .OO0 which.
at per cent, represents an annual cost
of S3.000000. which Is steady charge
upon the treasury necessary 10 keep the
grcenbacl<s in circulation. Ii Is evident
therefore that If some way could be de-
vsed 10 redeem greenbacks, the enormous
sum of $15ooo0.0o0 now lying absolutely
money. could be put into circulation
again.
That is. the grccnbacks ought TO be
retired because the Government is
obliged TO keep a reserve fund Of gold
to redeem those notes as they are pre-
sented. But, first of all, those notes
are never presented in good faith for
redemption. 1t is only by gold specu.
lators and in the pinch of the gold
dealers from time 10 time who want
gold for export and find this n con
venicnt means of draining the treasury
of its gold, that there is any use in
this direction made Of the grecnbacks.
1t is a good many years too, since even
that use was made Of them, And that
use would not have been made even
then il il had not been for the timiditv
and uuwisdom Of President Cleveland
aud Secretary Carlisle in determining
that they would not redeem those
greenbacks in anything but gold. If
Secretary Carlisle, backed by President
Cleveland had done as the Bank of
France does as TO its obligations, and
made the redemption either in gold or
silver at the convenience Of the treas
ury, the use of the grccnbacks to drain
the treasury of its gold would have
been an absolute failure: the "cndlcss
chain would have slipped. And it is
ridiculous to say, as some did say at
the time that the redemption Of those
greenbacks partly in silver would have
amounted 10 repudiation. 1T would not
have had the least tingc Of reputation
about it. No one ever suggested that.
with respect to the like use Of silver
by the Bank Of France; and no one
would have had any right to allcge
| that as an act Of rcpudiation on the
part of the United States.
But there is nothing TO the argument
itself as matter Of principle or
policy; because If ii were correct
principle, then all reserves TO secure
circulation should he treated in the
same way. If il is disastrous OF bad
economic policy on the part OF the
United States TO have on nand fnud
for the redemption Of the greenbacks
twe speak now OF the matter merely
as n point in banking policy), then it
is wrong for banks generally to hold
reserves to secure their circulation, or
to have circulation which requires such
reserves We do not agree ia the