Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1863-02-19
Or an i-sLe Of Sj0009,00 in
bonds TO reduce it to- I75 OG0,0C0

Or an isLe Of Sj0009,0OQ in
bonds TO reduce it to------ I75 0G00G0
Surely enough viii be effected for the present Il We
sucee-d in reducing the currency to $50 O0OOO in noses
and $50 00lO0J In ea certificate Such su srrane nj
OF the currency would pr badly be most uiicos Ths
reduction Of greatly expanded currency within much
narrower limits is delicate aud elthausfjn process
best and ought 70 o5 made gradually. Il The demand
for circulation should prove be fer 1lors than l9
UOo00 then part Of the whole Of the call certificates
would De reeonverted II, on the other hand. p dollar
Of she currency when issued the extent Of $4,000
COO was Of less Of value than dollar fu
certificates they could be turned zgsn into treasury
notes. Two hundr d millions Of such bon Is as have
been descr5ed aboyei in sdditioR~t0 the he
5., uurcuased with bonds would reduce the eurrencr
reach the amount OF 59lCJ3O90 ~ then we could s.i
bonds this imouat for notes issued ia 1853 should
etai3 the result nended by ee eretaEy, suppos
fBe mona of these notes be funded ia that year This
sibie that the sroug inducements TO fandi held Out
BY this bin ould not be largely operative If the whole
result of this process shO1d be 10 constitute currency
maiay Of ufy notes payable SIX months after t1e
conclasion of q treaty Of pta.s, receivable Ia payment
public dues and convertible into four per cent bonds
would be happy thing for the country me cheaper
medcm would be reserved for currency, and the new
notes convertible ato six per cent bonds would not enter
such into circulation, but woui De held at premium
and soon De funde1 We might thus be enabled 60 con
tinue fer long time the process of borrowing througa
the agency of ht notes, and eolec' tribute from
without visible eonstraln upo1 eny OF course there
limits to this capacity which it cannot be necessary
now to define.
The DrODOse1 arrangement of the currency might
have great advantages ia tbs future, to which It
may not be amiss 81 this time 70 advert With proper
legislation the part of the States IL may be made
probably the best paper croHiaon yet devised II after
the war this government shoud issue treasury notes
bearing interest but being simply receivable IL psy
OF public dues and convertible at the pleasure of
the hol1sr into six per cent call certificates heT might
become, with The aid and ASSISTANCE Of the Saes the
eutlre paper currency of the country. I the States
woald require ther backs 70 receive this paper and 70
issue osher, making it at tbs same ms receivable
in n
privileges % certain issue Of notes 90 the amount OF
90 coo COO with such marks as would Distinguish
theln then the C0nfedsTate 60 ernment would not be
ae in times Of temp aon 70 dsprecatsthsir currency
by increasing it 100 far
There eau be little doabt tn the circulating medra
thu constituted would be safer and afford sfesdier
standard Of value than aRy paper heretofore used for
that purpo Il ths currency shoud be Of less value
than call certificate secured by the Oonfsdefate GOV
ernment, guaranteed by the State and paying six per
cent interest then portion Of itwoud be funded ia
5hesa certificates until the residue rose equal value
IT, on Tie her haad, from any susden demand, this
residue Of the currency should be worth asu tho
sii sarfi.ieata dollar sneh a srton af these
eqr- stm between 3te two All that would he neces-
sar. would 10 10 keep the value OF these cersa re
specie par o. nsas To do this the government have
the power at any time 10 nay or these certificates i'm
specie, 70 be aoe 10 issue Others at such rate Of
interest would t them for the discharge Of thei- fuue
ton self djustng balance. such currency would
have many advantages over ban paper prof ssng 10 be
convertible into specie The first would preserve re
system Of domestic exchanges, matter what
might be the disturbance in the foreign the other inva-
riahy mpairs If it does not destroy the domestic when
efforts made too often in vain, 20 protect and pre-
serve the par vslus Of foreign exchange. When the
rate OF foreign exchange ASS against us a under he
fr.t system we can send specie abroad, aud still
have currency sufficient for domes ic purposes. Il
this process sa7sd leave vseu an IN the currency a.
home and pr0dnce pressure, that vacuum VIII be
Gled and the pressure re ieved by EeconFer0n Of call
certificates into notes When this state ftungs occurs
in osuntry haTas paper earrenoy protesting TO be
oonver6ie into specie, tire precious metals ssut
abroad aud the ranks to restore The eSsssary propO
ton between their paneF aud specie re3erve be gin 90
contract their issues en- thus The vacuum s increased
ana the pressure becomes greater AMI aggravated
On the other hand when the rates Of interest and prof
low, the FIST currency, Instead OF Increasing o
becoming redundant begins TO contract because of ts
increased relative value Of the cal certificates and h
process goes ON sntn money becomes more valuable and
speculation Is checked Bat If the rates cf interest
profit become lower under Convertible paper currency
/ the community use Of that money that the san
income may be derived az less &c proat sad spec
uatioa Is eneouraged when L oae % pc ee7tr q
Short the tlrst eypGnds when IL ought % expand ems
contraets when il ought to contrast Ihe second eS
pHndswhen il ought 70 contract anu contracts men 4
ought to expand Aay Interest which the banks M gh
have against ARRANGEMENT which deprived tez O. ih
right to issue is more apparent Than lea ine adsi
more than conater5slsnced By BE injury vhch the,
often sustain from The perous uses q such paper
the whole, more prohtaole- saogid TINS ptan pc "a u
practicable anG be deemed eligible 10 wonid euaoie -
Coniedsraey 9n The one hand to borrow one asnals
sBd fifty millions dollars without inter So aaa io4 4
Indefinite period whilst the Staics, the other, coui
use this establish far better and safer eufFsn
! than they have ever had in bank paper
But without advertiug further 70 the capaeiieso oi th
seheme cf finance for fntue dsvelonnents % H enee8
to say that this bfoperatea as thereis reason to hop
It may great good must result TO the country Muc
VIII IS efsetea # the nrogrs-sve expansion Of Tie cul
rency can be prevented still moe If il csn be reduce
within safe and reasonable limits When prices uerea'
raD,dly from any ehaugs in the relafi7n Of os-n
aud supply, but from progressive expansion he Cd
circulating medium which measures IL a1c the gover
er running ia debt largely ioT supplies iarashed
nrinaa s 3 Is
fn national banaruptCy History has told this ale
often mat would be supera0us 20 repeat IT, austie
10 the public creditor and he people a demand that
should do whatess Is necessary 70 correct the daprsc
tion N cur currency which must s1en become fearli
some adequate remedy be rc- applied 70 tie evil
scheme which win remove from circulation the gre'
sss of notes Issued IN The past, aud provide for Tie
trrs that after six months havs elapsed many
nearly many notes viii be funded IN m1nsh As ma
Do issued Ia shat lime would 10 mach service,
1t effected nothing mere. For 2 currency nxed in !
volume and preserving constant relation 90 specie,