The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1868-12-23

sent 10. every part OF Jle country IN
payment of debts, better and cheaper
than the transportation of coin.
The traveller from Maine to Min
nesota can carry fifty thousand
dollars of it about his person,
without inconvenience or observation,
saving to him the labor and anxiety
of carrying coin, or the purchase of
bill of exchange. IF brought to par,
they would be the most desirable cur
rency the country has ever known,
and the causes which usually bring
about a run on the banks for gold
would not operate against them. or
have any effect upon their value. I'm
der the old State bank system, to
which it is hoped the country will
never return, there was a far greater
demand for gold than would occur un-
der the present. The banks being
local in their character, aud their pa
per not current in distant parts of the
country, led to a demand on them for
gold by travellers or those who had
debts to pay at distant points where
their notes Wers not current. From
these and otner considerations it is
doubtful whether as much as one hun
bred millions of greenback notes
would be presented for redemption.
When the greenback note is as good
as gold, then the people will not
want gold, unless for specific pur-
poses, for it would be an inconven-
fence and burden.
The whole question may be thus
stated. If the Government is strong
with gold to redeem all the notes
that may be presented, but little gold
will be demanded, because it will be
worth no more than greenbacks; but
If the Government is weak and only
able to redeem a small part of the
currency, the gold will be hastily
drawn out to sell In the market at a
profit.
1t is true there are $780, 100000 OF
national bank notes in circulation,
for the redemption of which the
Government is bound, under the con-
ditions of the national banking laws,
and it has been urged that when the
period fixed for redemption arrives,
the national banks would immediately
rush to the Treasury with all their
greenback reserves and drain it of a
large part of its gold. To avoid this
difficulty, and to make the process
still more gradual aud to avoid all
rush upon the Treasury or banks,
| propose, by my bill, that
the banks shall not be re-
quired to redeem their notes IN
specie until the srst of January, 1872
and during the preceding six months
shall be required to hold in their
vaults the same amount of greenback
reserves, in which they may, as now
redeem their notes. If during that
| period they are required to hold their
| greenback reserves, as now, OF course
they cannot rush to the Treasury with
them to get gold, andsat the end OF
| this time the Government will be able
to meet their demands without trouble
or danger. To give the bank six
months TO redeem their notes In gold
and perhaps L may move to make
it year-beyond the time when the
Government begins the redemption
of the greenback currency, will be no
| hardship to the Government or the
people; for national bank notes being
convertible into greenbacks, they will
| be of equal value and at par, and per-
! sons holding the bank notes, who
want gold for them, will only have to
present them to the banks aud receive
greenbacks in exchange, on which
they would get the gold
And now | will consider the ques-
ton hO10 the Government shall pro-
cure the gold to commence the work
of redemption.
70 this l answer that the sales OF
| o.ol1 - A., Soa-a &C Al T.,
must be stopped, and the surplus
that which will accrue thereafter,
over and above the sums required to
pay the interest on the pubic debt,
and for specific uses, shall be reserv-
ed and set apart for the redemption
of the greenbaek notes. There is
now in the Treasury a surplus of not
less than S70,000.000, aud the accru-
ing surplus under the present tariff,
for the next two and half years, can
not be less than 800 100000, which
will together make $40, 600, 900.
1t is very difficult to form an esti-
mate of the amount of gold in the
country. The Director of the Mint
in Philadelphia, in 1861, estimated
the amount of gold In the country at
that time to be 1915, 900, 900. which |
have no doubt was much short of the
actual amount.
The Comptroller of the Currency
(Mr. Hulburd) in his report
last year estimated the gold
product from our mines from
1857, at -. ..'. SAL, $40 600
The impOr of gold from abroad
during the same period were. 1888, 5S7
The products of the mines dur
ing the year ending June 30,
1888, are estimated at................. 5000 600
Making in The aggregate. ssh, Is, 5s7
To which may be added the gold
circulation in California and
gOId e1rOdn STATES