TlIK FARMER AND THE BANKER. 147 



amount of the currency issued, less expense of administration 

 — say a net saving of two and three-fourths per cent. This 

 would amount, upon the amount of the national bank cur- 

 rency extant at the present time ($238,109,059), to $G,547,99N 

 annually. 



This is, of course, true. The question then remains — and 

 it is the only question of importance in this connection — 

 whether there is an indirect gain to the nation through employ- 

 ing the national banks in this service, sufficient to overbalance 

 this possible direct saving of interest. The indirect benefit 

 derived at the beginning of the system — that of finding a 

 market for its bonds — is, of course, no longer of any conse- 

 quence to the government, any more than the issuing of notes 

 under the restrictions of the present act is of much consequence 

 to the banks. The indirect benefit, if it exists, must be sought 

 elsewhere. 



As to this, those who favor national bank issues claim 

 that those issues, as well secured as under the present act^ 

 are preferable to any issue of government paper money, in 

 three respects: — 



1. The bank issues are safer. 



This sounds queerly, and is likely to shock emotional 

 patriots, but it is true, for the reason that, in addition to the 

 security of the bonds, the property of the banks may be 

 attached and sold, while the property of the government can 

 not. In case the United States should pay off its debt, which 

 it is quite likely to do, if we escape further war for some years, 

 it has been authoritatively proposed, by a workable plan alread}^ 

 alluded to, to make all the assets of all the banks liable for the 

 notes issued by any one of them. This, under the strict super- 

 vision of modern financial methods which the banks, in their 

 own interest, would require of the government, would make a 

 perfectly safe currency. No government currency is perfectly 

 safe, for the reason that, when taxation has reached a certain 

 limit, the people will not tax themselves further, no matter 

 what liappens. There is no financier in the world wlio would 

 not prefer a currency secured by all the assets of all the banks, 

 which he can levy upon and sell, to the pledged faith of any 



