Page:Speeches, correspondence and political papers of Carl Schurz, Volume 3.djvu/485

Rh business had wanted more currency than was out, it could easily have had it. Banking was made free by that very resumption act. Any five persons procuring the necessary capital can start a bank under the National system and issue bank notes. Had business required more currency than was out, the issuing of more bank notes would have become profitable. There is plenty of money lying idle and waiting for a chance. The chance would certainly have been taken hold of by enterprising persons had business really needed more currency. But not only has the volume of bank notes not been increased, but it has been voluntarily reduced by the banks. This is conclusive proof not only that business does not want any more currency than is out, but that it has even more than it can profitably employ. The contraction that has taken place was, therefore, not the result of a forced operation, but of a natural process.

The reduction of the volume of greenbacks has been stopped by law; but business is more sensible than Congress and rids itself of the currency it does not need, and nobody is hurt. It appears, therefore, that this terrible bugbear is entirely harmless.

Another foolish notion which has been industriously instilled into the public mind is that greenbacks are a part of the wealth of the country; that by a regulation of the volume of the greenbacks the wealth of the country is correspondingly diminished, and that a reduction of the greenback circulation must, even under the specie payment system, necessarily result in a contraction of the currency. In fact, the greenback has been made by the inflationists the subject of an idolatry which, upon close examination, appears exceedingly ludicrous. There is a sort of awful sanctity and mysterious power ascribed to it, which no other kind of money ever possessed. We hear of the bloodstained greenback, the battle-hallowed