The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-07-31
ompound Interest Notes.

in tic Herald money article OF July q it Is said that
The New York Sub Treasurer Mr. Cisco, opposed to
the issue OF five cont legal tenders. aud told Mr
Chase that they would be unpopular with banking insti-
buttons and capitalists and that be deemed the per
cent compound interest legal tenders fully obnoxious
he five por cents and protested against further ioa-
rlon in any shape. would like to comment the COM
pound interest notes
About three years ago sen. to the Secretary OF the
Treasury draft Of compound interest note payable at
the convenenoe OF the Treasury aud suggested that
such notes received for dues always whom seri
ousiy nconveneut they would be boarded by poor and
economical people, who waste tme at savings banks
or ksop money idle. ] sketched tAble showing the
dates At which the value would be 10l lo2, &c and
suggested that the nosshoud be
1870, 10. Whether the idea WAS new don't know-t
was new TO Whether the suggestion had any effect
don't know But wish 10 avail myself OF whatever
dit attention be due for having conceived the
dea aud TO offer reasons in support Of tho compound in
terest feature.
do notapprove the legal tender part. but deem II IN.
authorized by the constitution therefore
But a. Congress Is authorized to borrow money dvi-
sion Of the evidences Of debt into small amounts suit
the multitude is IN Its discretion aud SO is the time OF
paying interest," and evidently the annual payment OF
interest email petes inconvenient So it is In the
discretion OF Congres TO direct that such notes shall be
received for Dues with such poviso will protect the
government against embarrassment. In practice, the
quantity OF these notes Su should be such keep them
at par.
Now think Mr. Cisco saying that such notes
would he unpopular with banks. But think banks or
Issue are evils, and only my respect Tor commercial
liberty restraints mo from desiring their suppression
such BANKS cond be- sprev nrevcred should rsocs
And thus is one principal. why would substitute
COVE nment stock 10 small for the paper money OF
banks that interest, and unsafe that their
potes not fully current in ordinary times
many third half loss to the community. be-
leve that compound interest good
would shut the shops OF these sordd amperers with
the currency, and thereby would relieve the country
If ,hs would maze the notes unpopuar am 's hi
would not hesitate that account'even In ths cmer
gencS when public loans may depend the good will OF
Another good to be promoted that OF encouraging the
poorer class to Judging by myself believe that
when a man who keeps no bank account has common
bank poes he nastens TO get rid Of them, less they
should decline in value but he had compound interest
them tnsy IN value snS he woua sup
be deferred from useless and injurious expenses The
effect OF such currency II general would be to shut up
fly thousand grosshops, and In measure relieve the
public from tobacco smoke.
Economy Is necessary TO from the waste
OF war II was economy that raised from the effects
OF tho war OF 1912. as 10 q degree, remember. My
talked OF their savings interest much
and sseats ana they were but the mtaors OF older
persons. This economy will be promoted by subdivision
Of public stocks giving to tie poor the advantages Of
Which Only the comparatively rich have hitherto avaed
As savings banks theysbsrrow from the poor at Owe
per cont, when the current rate OF interest six
seven do ~. know that it Is unfair; but IL Is bard
and pound Interest notes would relieve the hardship
great popular can greater than that made to Napo.
eon few years ago. may be got in this way, when the
paper 6Danciers are longer willing TO supply money
% reasonable terms tina, time 1t will We
have not change CT rulers-aud the money material
thus oared will be saved induigsnces
AS to god, 10 for the rich, article OF luxury
ellers 10 ngots when they II manufacture II
should be subject to twice the duty ronf tariffs
worship they do and relieve Il from taxation for
the benefit OF the rich The only rational excuse for not
there no excuse for not taxing Il as highly diamonds
IRE taxod J. r. FISHER.