Year: 1873

time except through the inability or inef-
ficiency Of the State authorities. Personal
liberty has never been imperiled in this
country except for crime, unless the peril
was created by the State power.


Ametal currency is more desirable than
paper simply because it is less destructi-
BILE. and the kinds used for currency are
not as easy OF acquisition as paper, but
it is much less convenient Of use. But
the United States is deficient in coin for
circulating purposes. Our population Is
forty millions; our foreign commerce alone
amounts to more than thousand millions
per annum. and our internal trade is SO
vast that It's aggregate amount has never
been estimated. VIII it. be maintained
that one hundred and eighty million to
two hundred million dollars in gold and
silver coin will be sufficient for our large
population with the vast business Of the
country? But it will be said that the
States viii create banks to issue paper
money. Very good. We shall then have
on hand the old wildcat system,
so if the State banks are ever so sound
| our old experience will recur by which,
| if one wishes to travel from New Orleans
| to New York, he must change his money
in every State as he goes along, suffering
| discount in every one Of them. Trans
actions with people OF other nations of
| course must be based upon the worlds
money, which is metal, but among our
| own people it is far better to have paper
currency authorized and guaranteed by
the nation than by each State upon the
variety of theories and plans which would
necessarily prevail! in the thirty-seven
States.


The complaint that under the national
banking system there are irregularities
has a semblance Of truth. The first law
upon the subject was enacted while the
war was progressing. It provided that
the currency should be distributed ac-
| cording to population and business wants.
The East had more money than the West,
and the Southern States were not in q
situation TO adopt the system except in a
few localities. Naturally the East and
North obtained the currency under
the circumstances. In 1870 Congress
amended the law, increasing the ma
tional banking currency ffy-four mil
lion dollars. and provided that it
should be distributed according to popu-
lation, and when the increase should be
taken up it provides that twenty-five mil
| lion dollars should be re-distributed and
given to the States not having their pro-
portion. When this is effected the States
will have national banking currency equally
according to population. The fifty-four
millions have been absorbed. the last being
taken by one of the banks of this city,
and the Secretary OF the Treasury. we are
advised by kilograms. is enforcing the re-
distribution required by law. which takes
the capital from the New England States
chiefly. Louisiana has obtained her quota
more nearly than any Of the Southern
States, and can have her flll share when
the redistribution is accomplished. It
can not be denied that the national bank
iGg system furnishes the people safe and
uniform circulating medium. Yet it lacks
one essential quality. and that is elasticity.
Soundness and elasticity are not inconsis-
tent. II the government will issue its
| owN notes to any person or corporation
who viii deposit government bonds to Sc
care the billholder to any extent desired
by the people. and permit the withdrawal
of The bonds On delivery Of the quantity
of notes to secure which the bonds have
been placed in the treasury, the currency
| will be not less safe than now, and through
the action Of the people themselves the
volume OF currency viii contract and ex-
| pand to meet the wants OF the country.
| Then there can be no sectional advan-
tages, no complaint that the East and
North have obtained greater banking IA
c;l!ties than the South and West.


1t is safer for the country that notes
should be issued only as individuals or
corporations deposit bonds for them. than
to issue treasury notes directly. because
il the latter case the amount must neces-
sarily be limited by law, as in times of
pressure an unlimited authority might be
abused. This plan will give the people a
safe currency-one which will expand
and contract according TO business de-
mands, and individual liability will consti-
tute an efectual check upon an excessive