The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1868-09-03

immeaisAc1yressne specie payments.
Il 81 much to be regretted that the subject
or the manner Of payment Of the five TWEEN
" bonds was ever agitated by those who are
in favor OF preserving The credit Of the gov
ernmen, untarnished. If had been per
mitted TO remain at rest until specie payments
had beeu resumed there would have been
nothins TO discpss savo the naked PROPOSE
lions 81 honest payment q fs'tnless rep''ai-
alton. -
When the government ehall have honestly
resumed the payment Of all its obligaiss.sis ~
coin, there is ecarce doubt that rs creal'
win become 80 firmly fixed that it will ind no
difficulty in obtaining loans, both at home
aud abroad, to enable it to consolidate rs
whole debt, u . Ea.e not.ta succeed iour
per cent per annum.
The national banks are the creations OF the
government, and they I've b its suffsrance.
there have been granted them great priyl-
leges and valuable franchises. II would,
therefore, seem to be right and reasonable
that they should be made to assist the gov
eminent, and they live by its sntierance.
There have been granted them great prayi-
leges ard valuable franchises. II would,
therefore, eeem to DE night and reasonable
that they should be made to assist the gov
eminent in the funding and ultimate pay
ment of the public debt,
The present banking system might be made
free 10 all who would conform TO the require
ments Of the law. This would be perfectly
safe If the government should gradually with
draw its circulating notes and compel all the
banks in addition to the securities now
lodged in the Treasury, to keep certain
specifed amount in coin, in proportion to
he circumlation OF each bank respectively,
in the custody of some public officer, st the
commercial center OF the country. for the
sole purpose Of reaee ming their circulating
notes at par. The Interest on the. stocks lett
with the treasurer to insure the redemption OF
their circulating notes might be retained Tor
this purpose until it reached the required
amount Redemption OF their circulating
notes by banks at their own counters is q no
practical utility they might therefore sa's'y
be released from this liability.
New banks should receive no circulating
notes from the Comptroller Of the Currency,
excen. for a four per cent stock Of the Uni
ted States and all existng banks should
within speciiiad time be required to substi-
tute a like stock for the stocks nor on depos-
il with the Treasurer to secure the redemp-
ton Of their circulating notes. The ayidity
with which the whole first authorized issue
OF the United States three per cent certificates
was taken by these banks, aud their clamor
which -fuuurpd Congressto authorize another
issue, which is being taken up as fast ms 1t
can Be prepared, would seem to indicate
that it would be no hardship to these banks
to hold four per cent stock; especially as
government stocks in their hands to the
amount of their capitals, are now by law ex
empt from the payment OF duty on capital
stock levied on them, IN lieu OF all other
taxes.
Should government agencies at the same
time be established III Amsterdam, Frank
fort, London and Paris. for the negotiation
of such four per cent ioaa, aud the pay
ment OF the interest thereon quarterly ~
either Of their places nameG respectively, or
at either Of the offices III this country where
it is now payable At the option Of the :older 81
the stock, il is believed enough would he
taken to redeem NOT OILY the SIX per ceni
five-tw enties now held IN Europe but much
of that stock that is now heldat home. hesf
stocks should OF course hsye long terms e
run to maturity, giving them somewhat the
character af snuultles, and nlght he known
as American Gonso's.
All this new stock should be convertible
from a coupon to registered, and from q
registered TO coupon, stock, at any time
al tue owner : HptipH
With these two arrangements completed,
one-half of the present public debt would bs
| disposed Of at rate Of interest one~thlrd
| less than now paid. After that the govern
uent would have little difficulty in PLACING
| the remainder on the same terms at hotne
| this could be done by commencing redemp
| lions in the orders Of the issues OF The var
ous stocks BY naynient in money. Everl
| dollar received on the sale Of the new foul
! ner cents would redeem dollar Of he oil
eix per cent. stock. Such neg stoek
| should. however, be exempt from every kiHe
Of taxation whatever b The general 4 fE-
ment, or by States, municipalities or.eorga'
rations. Such provision would not 90 J
make the SOCKS more desirafis ana raaat'l
taken, but il IS necessary fe the very fSis
| tenca Of the gtyerf nsent Itself
Any government thai taxes its own stoch
il a renudiatar Ia tie extent OF such taxa
don. II il permits states Or municipalities
to tax il, tic government you'd always l5s
d. The mercy 81 the states and municipalities
for they might at an5 time tax Il to snch ~
extent as to virtually tax II out OF existence
and thus forever after praTent the goFern-
ment from M gotiating loans. however muci
| they might be needed for It's own preserFa-
ton. Once grant . the States the power L
| tax United States stocks, secession VII
have an easier road TO disuniou aud separa
ton than any the could be opened by al
armed rebellion.
! Many of the men, who during the rebel
! lion, invested their al in the present siN pe
cent stocks sio e the country from disco
luton, woula. from motives Of pairiotism, j
not from pecuniary considerations. be ail
ling to exchange such stocks now held b
| them for any new stock that would berel a
| Bile to them and satisfactory othe great bod
! of the people.
| knew al least one such the earnings o
| whose whole life are now go invested, VIII,
wonld at any time. now or hereafter, unue
| such circumstances aud conditions, lie gla,
| to Join others in making such an exchange
1 / doubt not General Butler holds some Q
these stocks. aud believe iiat he aud hi
] loyal friends, who hold his peculiar olinon
I IA regard to tie mode oil redemption 81 th
i fivestatntits would he wiling to n.eke III
4 exchange First, beeaase ii woa.a satisf
end quiet tlr public mind, ard bring peaef
i en- this vexed question and second, becaus
! 1t would be better for the hoides then Il
mode proposed by him. II is believed the
= it resumption does mol take place IN 2 shof
time, it viii be because the na1ional bank
will not be prepared for it.
/ 1t may be SAID thai the government sh1ui
1 do right anu resume when il Is able to do sc
irrespective Of the wishes or Necessities c
4 the banks Before coming to such conclu
sion it should be remembered that the gov
| eminent is The indoraer of all the nationa
bank notes, and that it has taken its ow
bonds for lis idemnity against loss by reaso
of its guarantee Of the bill holders of sue
banks. Should these banks fail, their note
must be redeemed at the Treasury st once
aud that, too, whether the securities pledge
for the purpose are sufficient or not. Thl
being the case il will be seen that the clrcu
!, lasing notes Of every national bank that me-
] fail, IN consequence Of premature re unF
! ton, or from any other canse, must be addt
TO the outstanding matared liabilities Of th
United States The government, On sue
failures, in order to provide itselfwith near
10 redeem the notes Of such broken banks
would be obliged to sell its own stocks hei
BY itself in trust for them.
If many shnuld fail there might i
thrown upon the market such an amount
. such stocks as might for a time at least, e.
riously impair its mercLantable value. PEI
, maps the depreciation might, under such ci
cnrnstances, reach point so low that h