paper money not based on specie; this man who, fifteen or twenty years ago, stood up in the town hall of Brookline in a set debate with Col. Wm. B. Greene to combat the central principle of Mutual Banking; this boor, who has never lost an opportunity of insulting Anarchism and Anarchists,—now comes forward to save the country with an elaborate financial scheme which he offers as original with himself, but which has really been Anarchistic thunder these many years, was first put forward in essence by Proudhon, the father of Anarchism, and was championed by Atkinson's old antagonist, Col. Wm. B. Greene, to the end of his life. Of course, all the papers are talking about it, and, on the principle that "everything goes" that comes from the great Atkinson, most of them give it a warm welcome, though precious few of them understand what it means. Those which probably do understand, like the New York Evening Post, content themselves for the present with a mild protest, reserving their heavier fire to be used in case the plan should seem likely to gain acceptance.
The proposal is briefly this: that the national banks of the country shall be divided into several districts, each district having a certain city as a banking centre; that any bank may deposit with the clearing-house securities satisfactory to the clearing-house committee, and receive from the clearing-house certificates in the form of bank-notes of small denominations, to the extent of seventy-five per cent. of the value of the securities; that these notes shall bear the bank's promise to pay on the back, and shall be redeemable on demand at the bank in legal-tender money, and, in case of failure on the bank's part to so redeem them, they shall be redeemable at the clearing-house; and that this new circulating medium shall be exempt from the ten per cent. tax imposed upon State bank circulation.
Of course a scheme like this would not work the economic revolution which Anarchism expects from free banking. It does not destroy the monopoly of the right to bank; it retains the control of the currency in the hands of a cabal; it undertakes the redemption of the currency in legal-tender money, regardless of the fact that, if any large proportion of the country's wealth should become directly represented in the currency, there would not be sufficient legal-tender money to redeem it. It is dangerous in its feature of centralizing responsibility instead of localizing it, and it is defective in less important respects. I call attention to it and welcome it, because here for the first time Proudhon's doctrine of the republicanization
of specie is soberly championed by a recognized econo-