Year: 1868

Tno Senate yesterday passed. tno Oufr0u0y
bill, and it now gees to the House Of Repre-
sentatives. The bill is, as we have stated on
previous occasions, almost entirely in the
interest of the national banks, the amount OF
currency of which is limited to three hundred
millions. After sharp debate it was passed
b. Q vote q twenty-avs to fourteen.


We have said, over and over again, that
many of those members Of Congress who
talked loud about immediate resumption Of
specie payments, and who were clamorous for
contraction Of the legal tender currency,
would soon be in favor of initiating the national
bank notes. In fact, smost of this talk about
contraction and forcing specie payments came
from the national bank men in Congress, who are
numerous and powerful in that body, not with
any expectation, nor perhaps wish, of reaching
specie payments, but for the purpose of driving
the greenbacks out of existence, so as to
increase the national bank circulation. The
debate in Congress on Tuesday upon the propo-
sition to increase the national bank currency
developed this fact. The idea entertained by
many of the Senators and openly expressed by





tender money-is an unsound currency, and
that the national bank circulation is the only
one to be kept in existence. Mr.. Wilson, of
Massachusetts,, calls legal tenders vitiated
currency and wants it withdrawn. He, at
the same time, would not only initiate the
national bank currency twenty millions, as
proposed by the bill under discussion on Tues
day, but wants an expansion Of hundred
millions. These national bank inaationsts,
however, met with check in the Senate; for
the proposition to increase the circulation
twenty millions was defeated, and the amend
a pro rata amount from the Eastern States
having an excess of banking capital, and to
distribute it among those in the West and
South requiring it, was carried. This check
aroused the national bank infationists, who,
by little parliamentary filibusterng through
Mr.. Sherman, revived and kept the question
open.


Thus, it ia apparent that there is little dispo-
stion among the majority to initiate the present
volume of paper circulation, while it is gene
rally conceded there is an insuficiency of
currency in the South and West to do the bust
ness of those sections. Still, the New England
States, where there is an excess chiefly of
banking capital and bank currency, will resist
to the last extremity any curtaIment Of their
unequal advantages. Considering the infu-
ence of New England in Congress, it is quite
likely the national banks of that section will
hold on to their privileges. In that case either
the South and West will have to endure an
insuficiency of currency and banking capital
or there will be an imitation. The struggle on
this question has only commenced, and we
may expect to see it become, ere long,
pretty fierce one; for important material and
sectional interests are involved.


With the existence of the national banking
system as it now stands we may look long
time for specie payments for this organization
will find it more profitable not to return to a
specie basis and will have power enough, pro-
badly, to control the action of Congress; but
| should the greenback circulation be withdrawn
| aud that of the national banks be increased
correspondingy till it reaches four or five hun
dred millions, we regard resumption as indef-
| nitely postponed. There would be much bet
ter prospect of reaching specie payments were
| the whole of the national bank currency with
| drawn and uniform gal tender one substi-
| tuted in its place. The government would
| circulation and could regulate it continually
| with the double view of benefting equally all
| sections of the country and of bringing about
| specie payments at the earliest practicable pc
| riod In this point of view alone uniform legal
tender currency would be much better than
the national bank and present mixed currency.
| But there are other reasons in favor of this
change. Why, for example, should the profits
of national circulation amounting now to
twenty-five millions year, be given to these
bloated and dangerous private corpora
tons? Why, if this policy of withdraw
ing greenbacks and substituting national
bank notes be carried out till the cir
culation of these banks swells up to
four or five hundred millions, should thirty to
| forty millions a year be lavished on a privi-
legged class? AN this could be saved to the
government and people by simply having one
legal tender currency. The saving thus made
would extinguish the national debt in twenty


five or thirty years. Are the people of this
country so lightly burdened that they can af-
ford to give away TO few capitalists-to these
national bank rporations-twenty-fve or
thirty millions year? The stupidity and
recklessness of Congress on the questions of
currency and national finances are astound-
ing There are no statesmen in that body
capable of legislating on the subject. It is
composed of small politicians who begin at the
wrong end and whose labors end in abortion
or something worse 1t would be blessing
If they would let the currency alone and go