Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1867-12-04
Contraction of the Currency.

Cen Butler made quite lengthy speech
in the House last week, in support of his
views In respect to paying government bonds
in greenbacks, and contracting the currency.
He thinks the bonds were bought with green
backs, and ought to be paid in the same cur
rency, especially as the law authorizing the
loan does mt require their payment in gold :;
and SO tar he has pretty strong legal and
equitable ground to stand upon. But his
views in respect to the currency we appre-
bend are open to more criticism than his
opinions in respect to the bonds and as the
payday of the bonds is many years ahead
and the questions respecting irredeemable
paper currency are confronting to-day, an
error in respect to the best method of getting
back to specie payments is of much more
consequence to the people than any theory
in regard to the payment of the public debt
Gen. Butler is in favor of issuing more green
backs ; and he would have the government
make the greenbacks exchangeable for bonds
bearing a low rate of interest, and the bonds
again exchangeable for greenbacks. BY this
device he thinks, when currency becomes too
abundant it would be exchanged for bonds.
and when it becomes scarce bonds would be
exchanged for currency, and the currency
would never be inflated. lie is also in favor
Of replacing the National bank currency with
greenbacks and he thinks this would save
the government the interest on that amount
Of money, or about thirty millions of dollars
yearly which is certainly worth saving.
This is Gen. Buffers proposition, as he is
reported
| propose we should enact in some proper
form that the Secretary of the Treasury
should hold all the National bank bills.
which have been collected by the Collectors
of the Internal Revenue, or which have come
through other means into the Treasury of the
United States, and at the same time should
issue to the banks, if they desired to receive
them, or to issue in payment of the interest
bearing notes, which are payable in currency,
an equal amout of legal tenders. In very
few months-four or five-the National bank
notes would be withdrawn from circulation,
and their places supplied with greenbacks,
without any shock to the business of the
Pari passu the bonds of the banks
held as security for these notes could be res
tored to them. This proposition, sir, if car
RED out, would put INTO circulation some
three hundred million dollars more of nation
al legal tender notes without increasing that
and to release the country from
the payment of between twenty million and
thirty million of dollars in currency, which
IS now paid to the national banks on these
bonds, and in place of them bills would be
aiken by the non-interest notes of the United |
States. without any shock to the business of !
he country.
The proposition, it stands in the report, |
sn't quite clear, but, no doubt, Gen. But
er's statement means that the government |
ought to make the National banks redeem
heir circulation, and withdraw it, leaving
he Treasury at liberty to issue greenbacks
o an equal amount with which to buy up its
,onds in the market. This scheme seems to
re very desirable one, as if carried out it
rould add nothing TO thevolume of currency,
Thile it would save the government the in {
crest upon over three hundred mill.o-s OF t