Year: 1878

1t is easy enough to say awe believe III
substituting United States notes Tor green
l,acksl for notes of national GanksH; but
The individual who or the party which
honestly holds anG proclaimS this belief is
bound to explain how the substitution is to
be made. 1t is quite practicable, OF course.
with suitable legislation, for the Govern
ment to take up every nationa'-hank Dill and
give the holder q grecnJack OF the same de-
nomination: but this would not necessarily
wipe out the national banks. They are large
holders OF the national bank bills, and would
be, consequently. OF the grccnbackS issued
to replace those bills. Being SO, they would
exercise the same practical control overcap-
ital and over rates OF interest that they now
do. The banks, then, must be abolished in
order to make the substitution OF green
backs for their bills OF anv effect. But even
when this is done it is difficult to see where
there is any benefit to the people. 1t will
still be the owncrs OF the bank stock and
the capitalists who will hold the SreenbackS
and control the rate OF interest; and lis the
people will have lost the organizations by
exchanges between which the currency
wants OF the country have heretofore been
measured, they are far more likely to find
themselves seriously inconvenienced than


benefited by the substitution.


Assuming that these Inconvenience are
overcome and the country fairly started on
the pathway OF having its currency in paper
direct from the Government. another ohsta-
Gle arises the moment it Is determined that
more currency is needed We say nothing
here OF the dlfliculty-amounting, as we be-
lieve, to an Mposs!bility-of having the az
bitrary will OF Congress or anybody success
fully substituted for the natural operation OF
commercial laws in determining when more
currency is needed; but note merely the
practical obstacles in the way OF issuing the
currency when it has been decided that
more is needed Under banking system,
the demand being shown, capital steps IN
and advances the currency in exchange for
commodities or for promises to pay; but
unless the United States Government can
do it in the same way how can it increase
the currency at all? The revenue OF the
Government exceeds its expenditures, so
that it cannot increase the currency by pay
inc it out in the ordinary course OF business.
1t must therefore receive something IN eX-
change.


What shall it be? Shall the Government
engage in gigantic system OF internal I'M
proyements so that an outlet may be found
for the currency? Are the people willing
to be taxed for that? War is an excellent
means OF increasing expenditure. Shall a
war be inaugurated? II so, with whom?


The communists are suspected OF holding
that the Government ought to issue the
money direct to the citizen, and quizzical
congressman recently prepared, though he
did not introduce. a bill requiring each head
of family to send schedule OF his weekly
expenses TO the Secretary of the Treasury
to Che end that the Government might sup
port him. Among the honest advocates OF
greecb back substitution, OF course, no such
doctrine is held; yet the method suggested
OF getting out greenbacks is very little less
sensible than the others. One OF these
methods must certainly be selected il the
Government is to issue all the currency.
Which shall it be?


This question the advocate OF grcenback
substitution who is honest in his advocacy
must answer before he can reasonably ex-
pect to succeed. Detroit Free Press.