Year: 1877

The eighteen gentlemen who met at
Congress Hall in this city, yesterday,
seemed TO devote most of their time to
abuse of the national banks. There may
be wide and honest differences of opinion
as to the value of the national banking
system. While believing that system one
of the best ever devised for the purpose
it was intended to fulfill we do not pro-
pose to discuss its merits now. But we
ask all thinking men if the remedy pro-
posed by the Congress Hall convention is
not worse than any disease from which
our financial system suffers.


These gentlemen call for the substitu-
tion of Treasury legal tender notes for
bank notes. But they do not tell us how
two very formidable obstacles are to be
overcome. The first of these obstacles is
the law which Congress passed during
the war pledging the faith of the govern
ment that the issue of greenbacks should
never exceed S400, 900, 900. The second
of these obstacles is the decision of the
Supreme Court that the acts of Congress
making Treasury notes q legal tender
were in exercise of the war power under
acknowledged circumstances of national
peril, to meet an overwhelming ncces-
sity, in effect that no such power exists
in time of peace. The power OF the gov
ernment to issue currency, that is. to put
out non-interest bearing notes, may not
be disputed, but to issue irredeemable
notes, compelling people to take them, is
quite another thing. There are differ
ences OF opinion on the question of paper
money. whether it is better or more eco
nomcal for a government to issue it OF
TO give the power TO corporations. There
can be no constitutional question as to the
want OF power of this government to is
sue legal tender notes, to make forced
loan In time of peace. Even did govern
ment possess that power it would be dis
honest to use il unless the notes were to
be redeemed in the current money of the
world. 1t would be robbery to compel
men TO take pieces OF paper which have
no Intrinsic value and are not exchange
able for the precious metals, in exchange
for labor or the products of labor. 1t
would be folly, ii the notes are to be re-
deemed, for the nation to increase the
already great burden of its debt. There
is no need OF more paper currency. A
considerable portion of our currency is
not now in use, for there is no call for it,
Capital is eagerly seeking employment,
and hnds employment limited. Money is
cheap" the rates of interest are low,
ana any man who can give satisfactory
evidence that he can repay can obtain the
use OF money cheaper than ever before
in this country. Currency relormers can
ask nothing more unless they wish to
force capitalists to lend money to men
who can never repay it; and that would
be robbery, which is of course very far
from their thoughts.


The greenback men do not reflect that
''paper money" whether Issued by banks
or others. is not real money but a mere
promise to pay money, which it is option
al with any person to receive or not.
Every man has the privilege to issue bis
note or check payable on demand or time,
II he can lind any person to take it. No
man need take national bank note un-
less he choose, but knowing that there is
security on deposit for its redemption he
has no hesitation. The greenback, which
it is proposed to increase.in number, is a
naked promise without dollar behind il
but we.must accept 1t whether we wish tc
or not.


The difference between a gree nback ant
bank-notes, and all other forms OF substi
tutes for or representatives of money i
that il Is forced note or legal tender il
the payment OF contracts between indi
yiduals. Congress never by any charte