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Show RETIRING THE GREENBACKS. The hope which springs eternal in the humau breast was never bettor exemplified ex-emplified than in tho attitude of a certain cer-tain class o financiers towards tho United States currency notes commonly called "greenbacks." There is never kicking a voice here and there calling for the retirement of those notes, and various arguments of moro or less frivolity arc urged from time to time in favor of the proposition. It seems that there is about to be a rovival of the "demand." for the retirement re-tirement of the greenbacks, and tho argument adduced in favor of that retirement re-tirement is about the most foolish of all those thai have been advanced. Still, it is an old argument, and runs as follows: Some day people will learn that at the present moment more than fl00.000.000 of money actually is lying ldlo In the vaults of the treasury. This sum. which, to ho exact, is $150,000,000. really hns lost all of Its function us money. It Is a reserve fund in t lie form of gold coin and bullion bul-lion which Is held In the treasury for the redemption of the outstanding' green-bucks, green-bucks, which on the first dny of this month amounted to SU 1R.GS1.01C. That reserve re-serve fund represents a loss of interest to the government on ?ir0,000.000. which, at - per cent, represents an annual cost of $3,000,000. which Is a steady charge upon the treasury necessary to keep tho greenbacks In circulation. It Ih evident, therefore, that If some way could be devised de-vised to redeem greenbacks, the enormous sum of $150,000,000. now lying absolutely Idle and performing no function as mony. could bo put into circulation again. That is, the greenbacks ought to be retired because the Government is obliged to keep a reserve fund of gold to redeem those notes as they are presented. pre-sented. But, first of all, those notes are never presented in good faith for redemption. It is only by gold speculators specu-lators and in tho pinch of tho gohl dealers from time to time who want gold for export and find this a convenient con-venient means of draining the trcasurj' of its gold, that there is any use in this direction made of the greenbacks. It is a good mauy years, too, since even that use was made of them. And that use would not have been made even then if it had not been for the timidity and unwisdom of President Cleveland and Secretary Carlisle in determining that they would not redeem those greenbacks in anything but gold. If Secretary Carlisle, backed by President. Cleveland, had done as the Bank of France does as to its obligations, and made the redemption cither in gold or silver, at the convenience of the treasury, treas-ury, the use of the greenbacks to drain tho treasury of its gold would have been an absolute failure; the "endless chain" would have slipped. And it is ridiculous to say, as some did say at the time, that tho redemption of those greenbacks partly in silver would have amounted to repudiation. It would not have had the least tinge of repudiation about it. No one ever suggested that, wit.ii respect to the like use of silver by the Bank of France; and no one would have had any right to allege that as an act of repudiation on the pari of the United States. Bui thero is nothing lo tho argument itself as a matter of principle or policy; because if it were a correct principle, .thou all reserves to -secure circulation should be treated in tho same way. If il is disastrous or a bad j economic policy on tho part of the United States lo have on. hand a fnud for the redemption of tho greenbacks (we speak now of t.hu matter merely as a point in 'banking policy), then it is- Avroug for banks generally to hold reserves to secure their circulation, or to havo circulation which requires such rfrvrv. "Wn do not. utrron fn the proposition, however, (hat the United States is in the banking business in that way. We do not believe that il should be required to redeem the greenbacks at all, except at its own convenience. If, in order to establish a permanent, banking and cuiif noy system sys-tem in this country. M is found desirable desira-ble lo recall tho greenbacks, that is a different proposition, one I hat. might bo consistent. Hut. lo hold thai tho United .Stales is bound to redeem at tho option of the holder of the green back, and in what ho calls for, while that greenback is current money, accept ac-cept oil as such everywhere, is lo invade tho sovereignty of the Nation and to put. its r.rm..ces at the bidding of every chance comer. There is no occasion for tho United Slates lo lay itself open and defenseless in this matter, as was done during the second administration of President. Cleveland, but has never been done at any other time or under any other President. Tho tradition of keeping up the gold redemption of greenbacks on demand is on-1 that I here is not the least, necessity to continue.- And wo have no idea that tho greenbacks would appreciably deprcci-j deprcci-j alo in current exchange if the United Slates should withdraw that $lo0,000,-000 $lo0,000,-000 reserve, and put the coin into circulation, cir-culation, leaving tho greenbacks tc maintain fhomsclves as curront money, without any reserve redemption fund in gold. |