, 1863-01-01
THE THREE HUNDRED MILLION
SCHEME,

AAE eIAcuAc lul 1I1slu6 IQoQCy prepared
by the Committee Of Ways and Means,
which will probably be presented to Con-
gress, authorizes Secretary Chase to issue
three hundred millions more " greenbacks,"
hut it makes no vacuum into which to pour
this flood Of currency, and therein is the
fatal error Of the scheme Before the war
broke out, the total bank note circulation
Of the country, North and South, was
$20o, ,oo0, 900, and the amount Of gold and
silver in actual circulation OF held By banks
TO redeem their issues is estimated at $780,
oo0, ,0oo-making q total circulation Of
$500, 900. On the LIST Of December, the
banks Of the loyal States lad outstanding
about $200,000,000 Of currency. The
''grcenbacks'' in the hands Of the peoplc
and on deposit are estimated ut S100,000,-
000. The banks are said to hold $50, ,000,-
600 more for purposes Of redemption.
From this it appears that the present vol
ume Of currency in the loyal States is
larger by fifty millions tllan tue gold, sill
ycr and bank paper in circulation before
the rebellion in the whole Union. The
consequence is that this currency is worth
but 70 cents on the dollar by the coin
standard. The $3.50, ,00o, 900 Of currency is
actually worth but s245, 100000 Of real
money. Consequently tllis1ast named sum
is just about the amount Of money the
loyal States require to do their present
business. Every dollar above that is 50
much inaation-water.
It is now gravcly proposed by the Com
mittee Of Ways and Means, to pile on the
top Of the present excessive and depre~
ciatcd mass Of currency, $500, 100000 more
legal tender notes. In the meanwhile the
1880 debt factories, miscalled "banks.r
will add another s100, 100000 of their stuff
to the pile, and the whole mountain Of
$3.50, 0,000, 900 will be worth just soa445 900 900
in coin, or about thirty cents on the
dollar.
But suppose the banks" do not expand
any more, the $500, 900 900 of additional
legal tender notes wil,sink the value Of
the circulating medium to forty
cents or forty-t1ye cents on the dollar.
Twelve dollars Of bills will be worth q
hvc dollar gold piece, and no more, And
aA descriptions Of property will initiate in
like proportion. All values will he 7o.
ranged, and any sort Of Temporary relief
the Government may obtain while ,,tterinp
these notes will be Immediately lost by the
increased cost Of everything the War and
Navy Departments must purchase for the
support Of the army and fleets.
The Government can obtain no relief
from the furtherissue Of lega1-tender notes.
What it gains on the one hand it loses On
the other. Before putting out any more
Treasury notes the Committee of Ways
and Means should make provision for re-
firing the rival issues of bunk corporations
that now supply the demand for a circn1a,
ting medium and elbow out Uncle SANS
green-backs. These shinplaster establish
ments should be made to get out of the
way and leave the field to Uncle Sam.
He can furnish all the *sgreen-backs"
that the people can, use, and
they infinitely prefer his currency to
the Wild cat stuff put out by 1900 "banks."
Let the Committee impose at least three
per cent. tax on every dollar Of "bankn
issues. This will cause them to retire, and
create vacuum for two hundred millions
Of Chase's greenbacks without inflatipc tho
present volume Of currency, while at the
same time, it will give the people safe,
sound and uniform currency, and the gov
eminent loan Of two hundred millions
1ree Of interest-thereby saving the public
t"esEe to fifteen millions per annum Of
| taxes.
Secretary Chase does not advise the is
suing Of another dollar Of "1egal teodcr'