11 APRIL 1874, Page 2

The old Birmingham currency doctrine, under the name of "inflation,"

seems to have got strong possession of the American mind. Both Houses of Congress recently passed a resolution authorising an increase in the issue of greenbacks to 400,000,000. dollars ; and a still bolder proposal, to allow free banking and increase the greenbacks to 800,000,000 dollars, is very hotly discussed. if we understand the latter proposal, the paper: currency is to be doubled, and anybody is to issue notes who- likes,—a measure which would result in a short time in a crash such as we have not seen since the South-Sea Bubble broke... It is possible that the man who issues notes is to keep•. a proportion of greenbacks available for their conver- sion, but in either case the idea is evidently based on. the notion that, by some hocus-pocus or other, it is pos- sible to get more hay out of a field than there is grass in it. Almost every nation has believed that at some time or other; but we should have thought Americans the last persons to be se taken in. While the fit lasts, English investors will do well to. bargain for nothing but gold.