_Advantages and disadvantages of national bank currency._—The advantage of such a uniform system of bank notes is evident. The bills are secure beyond the possibility of doubt as to their final redemption, and therefore circulate freely without reference to the failure of the bank issuing them. In case of failure, all the banks form a ready machinery for collecting the bills for final redemption at the United States treasury. The frequent reports and expert inspection give as satisfactory means of maintaining safe management as can be secured by law. The possibility of connivance between examiners and bank officers is reduced to a minimum. At the same time, there are disadvantages from several sources. First, United States bonds do not form a permanent basis. Second, the market value of these bonds and the low rate of interest make the use of capital in the shape of circulating notes less profitable than other capital in the bank. This is especially true in the newer communities where interest is high, and banks so located are likely to surrender their circulating notes at times when money loaning is most profitable, and thus cause a fluctuating volume of currency in the country. Third, the national banks are easily made objects of suspicion as to matters of legislation with reference to money. _Government banks._—Similar institutions under direct management of government officers have often been thought of as bringing the banking machinery within the direct judgment of the people, and so best meeting the wants of the community as a whole. The advantages of unity and publicity in such a system seem evident, and yet in actual practice the safeguards against misuse of power have proved on trial less satisfactory in such methods than in several others. The history of debased coinage already referred to shows that men in power may easily disregard the interests of the people, and under popular government both officers and legal restraints are subject to changes in the interest of localities and parties. It is possible that a stable body of experts might manage such an institution under laws as stable as the Constitution with success. But the restraints of law are most effective upon institutions outside official circles. A government bank is subject to extreme pressure from popular demand under any financial distress to issue currency for general improvements in public buildings, parks, etc., which can bring no return and afford no means of redemption. Even the demand of unfortunate debtors for extended loans may push the bank into excessive issues, and finally lead to the scaling of debts and currency together in an effort to escape the results of over-issue.