THE FUTURE OF NATIONAL BANKING. 495 



the capacity of which for working mischief has often been pointed 

 out. 



It is not probable, however, that there will be any wide departure 

 from existing methods. Outside of the straggling ranks of the 

 greenbackers the national-bank notes are regarded with favor. It 

 can not be gainsaid that the period during which they have been in 

 existence has been a very comfortable one, so far as a good currency 

 for the people could make it so. Whatever theoretical objections 

 there may be to the system, it has worked singularly well, is justly 

 popular, and it is easy to understand why its probable restriction and 

 ultimate discontinuance should be looked forward to with concern. 



There has been little or nothing in the way of suggestion as to 

 what can be done to perpetuate the national-bank issues. Various 

 plans have been proposed for prolonging their existence ; but closely 

 adhering, as all these plans do, to the theory of a bond-secured cur- 

 rency, they are confined within narrow limits. 



Secretary Folger and Secretary McCulloch, Comptrollers Knox 

 and Cannon, have substantially agreed in their reports for two years 

 past in recommending 1. The removal of the tax on bank circulation ; 

 2. An increase of the percentage of currency which the banks may 

 issue against bonds deposited ; 3. The conversion of long bonds into 

 three, or two and a half per cents, the latter being less likely to be 

 withdrawn for reasons having no reference to the amount of circula- 

 tion needed ; and bills were introduced in both Houses of the last Con- 

 gress providing for the practical application of these recommendations. 

 Their adoption would, however, afford but temporary relief. It would 

 have the merit, no small one it may be said, of enabling us to travel 

 along the well-known road for a while longer, but it would only post- 

 pone the day when a solution of the currency problem must be con- 

 fronted. 



The true solution has, by some of the gentlemen referred to, been 

 declared to be a reduction of the redundant revenue sufficient to retard 

 the retirement of bonds, and finally to arrest it when their volume 

 shall have reached, or closely approached, the amount requisite to 

 secure the national-bank circulation. 



To retard the payment of the public debt by reducing taxation 

 would probably be expedient, it certainly would be popular ; but 

 wholly to arrest payment, and, for such a purpose, maintain the debt 

 at a fixed sum, would be another and a very questionable matter. 

 Moreover, a currency thus regulated as to volume would lack the 

 important element of adaptability, or, as it is sometimes called, elas- 

 ticity, for it is not likely that any one would go so far as to suggest 

 that the bond debt should be increased and decreased in accordance 

 with the demands for currency a method which, if not otherwise 

 questionable, would be so clumsy and tardy in its operation as to serve 

 but poorly. Who in such case should decide what amount of cur- 



