The Western "Inflationists," as they are locally called, have evidently
a majority in the American Congress, both Houses having now passed a Bill for inflating the currency. The authorised cir- culation of greenbacks or legal-tender notes has been raised,. taking the dollar at 4s., from £71,000,000 to 180,000,000, and the authorised issue of national bank-notes from £70,000,000 to. £80,000,000, making altogether an increase of £19,000,000 in-the currency. Moreover, the United States securites which the Banks are required to keep to cover issue may now be kept in their own vaults, where nobody can see them except their own officers.
The avowed design of this increase of 12 per cent, in paper-currency is to make money cheaper in the West, and there are signs that the Inflationists intend to go much farther. We have discussed the subject elsewhere, but there seems little doubt that. the West and South-West has got a currency-craze into its head, and intends to try whether a bank-note is or is not equivalent to money. Paper currency, if issued beyond the point at which it keeps at par, is, of course, a tax on all creditors for the benefit of all debtors, and not only confiscates the latter's. property, but makes business nearly impossible.
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