Democratic Sentinel, Volume 3, Number 44, Rensselaer, Jasper County, 12 December 1879 — THE LEGAL TENDERS. [ARTICLE]

THE LEGAL TENDERS.

Programme of the Republican Party. [From the Cincinnati Enquirer ] Advices from Washington city are that some Republican Senators and members of the Hon e are at present unfavorable to retiring any of the existing volume of legal tenders, fearing the effect of such action upou the Presidential election of next year. No Republican who opposes such reduction need, however, to be deceived by the contemplated delay. The retirement of all the $346,000,000 and upward of greenbacks is the Republican programme, and if that party succeeds next y;ar the plan will be carried out' This $346,000,000 draws no interest, circulates as money, and commands a small premium over gold. Funded in 4-per-cent. bonds, it would draw about $14,300,000 interest per annum, payable quarterly. What need is there of thus increasing the burden of our large public debt? The only true answer is, the na'ional banks demand it, and the Republican party is the party of the national banks. They are arguing (?) that the Government ought not, upon principle, to issue any paper promises to circulate as money. Why? Surely there is nothing in the Federal constitution forbidding it. After the crash of 1837-1840 the Sub-Treasary law enacted by Congress expressly gave the Government that power, it being thought much better for the Government to rely in time of need upon its own credit than to give its credit to a national bank and pay the bank interest for giving back to it that credit. Series of deman d treasury notes, issued before and at the beginning of the late war, under the provisions of the Sub-Treasury law, are instances of the unquestionable exercise of this power. Taking it all in all, that Sub-Treasury law was the wisest and most practical financial measure ever adopted in the United States. From its enactment until this day all its main provisions have remained upon the Federal statute book, and their observance has done almost everything in enabling the country to extricate itself from the crushing debt occasioned by the war, as was the case from the crashes of 1837 and 1857. The national banks wish their notes to supply the place of the United States legal tenders, they taking that amount in bonds at 4 per cent., payable quarterly. They will thus reap $14,000,000 interest annually paid them every quarter. They will then loan out $335,000,000 of their notes—promises to pay debts—at from 7 to 10 per cent, interest. This they can do, as the Government, upon the pledge of the bonds, will have given them its credit and be paying them quarterly $14,000,000 a year for taking it, and their notes will circulate wherever the Government credit extends, and would not circulate, except locally, without it. No wonder the national banks want the greenbacks retired*; and they willinevitably succeed in their desires if the Republicans succeed in the coming Presidential election. No one need be deceived by the do-nothing policy of the Republicans at this session of Congress, though urged to action by" Secretary Sherman and President Hayes. They intend to do the bidding of the national bankers as soon as they dare, which will be immediately after the Presidential election is over, if they are successful. Our national debt has been enormous, and is yet large. It has, as can be demonstrated, been, by the legerdemain of Wall street and national bankers, already paid twice over, and they seem to desire its payment three times—that number being, in the estimation of the superstitious, a charm.