Year: 1878

Il


The National Banking system is one of the
established institutions against which the new
Greenback party and the degenerate Demo-
Gratis who are following in its wake are now
directing Their sharpest attacks. The mere
mention of it in d convention OF Nationals Is
like shaking a red rag in the face of mad
bull, and its effect in Democratic gatherings
is hardly less alarming. The present demand
for the destruction of the National Banks Is
the natural fruit of the initiation mania. Four
years ago the same disease manifested itself in
n different form, and the same men who are
now crying "DOwn with the banks were
then clamOring with equal zeal for :" free
"banking." They were ANXIOUS then to extend
the system indefinitely, because they believed
that it would cause an enormous bank-nOte
imitation. Disappointed in that expectation,
they now desire to destroy all the banks, be-
cause they think that in some mysterious
way which nobody has ever been able to ex-
plain, the withdrawal of the bank currency
will he followed by enormous Issues of legal
tender notes.


There Is but one mode of increasing the
volume of greenbacks actually in circulation
in this country. and that is by increasing the
expenditures of the Government. Az long as
the Secretary of the Treasury Is not called
upon to pay out any more money in the
course of fiscal year than he receives as
revenue, the new legal-tender notes, If their is
sue should be authorized, would lie idle in
the Treasury vaults unless some of the
wild schemes for the free distribution of
the " fiat money should be adopted. We as


tI,.,E ,,afa a,.fg
within the next ten years will meet with in
superabie obstacles TO the payment of the
bonds of the United States in anything but
coin. Economy in the public expenditures
then, which is one of the grounds upon which
the Democratic party dishonesty asks the
country to trust it, and greenback imitation
are utterly Incompatible. Nor would the with
drawal of the National bank notes facilitate
the issue of new legal tenders. On the other
hand it wOuid cause the sharpest kind of con-
traction. The destruction of the bank circu-
lation would not increase the payments which
the Government would have to make, while
il would reduce by about One-half the volume
o. The paper currency in which taxes could be
paid.


But the infationists say that it is part of
their scheme to substitute greenbacks for the
National bank notes. How7 Legal tender
notes will not Aow into the circulation of
their own accord. They must be paid out for
something, unless they are to be given away
or lent TO tramps without security. There
never was ia the United States an imitation OF
paper money issued by the Government ex-
cept in times of foreign or domestic war, and
when the public expenditures exceeded
the receipts. 1t is one thing to propose
to substitute greenbacks for the bank cur
rency, but it is another and quite different
thing to do it. The National Banking system
as now organized furnishes the safest, most
convenient aud most elastic paper currency
this country has ever had. The bank paper
Is capable of almost unlimited expansion
whenever the demands OF trade" about
which the inflationists talk so much, make
themselves felt, and OF a corresponding con-
traction in times of business stagnati0n. Its
volume does not even depend upon the amount
of coin which the banks may have in their
vaults, as does that of the circulation Of the
Bank of England, and it is equally adapted
to the needs of the country in times of sus-
pension and during periods of specie payments


The working people of the United States
have a more immediate interest in the main
tenance OF sound banking system than any
other class. The banks set capital in motion
that would otherwise remain idle, and thus
directly make possible the employment Of
hundreds of thousands of men who would
otherwise find no work. This fact was recog-
nized even by the infationists four years ago.
when they declared that the business of the
West and South was suffering for the want of
banking facilities. 1t would he admitted by
the same men now il they were honest with
the people whom they are leading.


THE VICTORY IN COLORADO.