The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1868-04-02
Questions Asked and Answered.

Indebtedness into nOn-In.eresG- bearing
Indebtedness, and which will be paid in
gold-proyiding people prefer gold to
greenbacks. Will the Tribune, for once
drop its cant about currency expansion
when none is intended-and floods OF
lrredeemable currency there will
be none--and tell us what it's objections
are to changing an interest bearing debt
into one that bears no interest? Will it
tell us readers, in as plain English as il
can employ, what are its objections tc
employing greenbacks in place of Nation
al Bank currency, and thereby saving
the country some $40, 900, 900 annually?
Will it for once, oblige us with straight
toward answer, which contains not one of
the cant, catch-words, and clap-trap
which Radica. journalists all use in carry
ing convention to their intelligent read
ers p Chicago Times.
The New York Tribune will make what
answer it pleases, but, as the Times has
asked us the same question, we reply as
follows:
First The loan act of June 30, 1864,
contains the following stipulation, made
with the public creditors, who subsequent
ly bought thousand millions of its five
twenties, or other securities convertible
into them;
"Nor shall the total amount of United
States notes (greenbacks issued or to be
issued erer exceed $500. 600, 900; and such
additional sum, not exceeding $50, OOO,-
600, as may be temporarily required for
the redemption of temporary loans''
There is now outstanding nearly the
full amount Of greenbacks allowed by this
agreement with the bondholders, and to
add $4,000, 000,0 more would be clear
and indisputable violation of the contract.
Second. The abolition of the Nation
al Banks would necessarily seriously de
range the business of the country After
the destruction Of these banks, there
would spring up a crop of private shaving
shops under no legal control or regula-
tons, which would charge what rate of
interest they pleased, and play the shark
without let or hindrate In short time
they would become uncomfortable, and re-
hef would be sought by organizing
State banks under the old charters and
laws. The tax on State bank circulation
would quickly be repealed after the Ma
tlonal Banks were dead. Then we should
have the old multitudinous systems of
banking again fastened on the country,
and every man would once more be oblig-
ed 10 carry counterfeit detector in his
pocket, and stand shave on his currency
every time he crossed State line. But
even a revival of the old wildcat system
would be more tolerable than brood of
two per cent month shaving shops.
The people will demand and have some
banking system restricticted and regula-
ted by law, and if they cannot have Ma
tlonal banks they will insist on having
State banks. Nothing is more certain.
THIRD. Greenbacks are due-bills of
the government-''pr promises to pay to the
bearer on presentation at the Treasury"
as many dollars as are specified on their
face and dollar is 234 grains of pure
gold. But the government unfortunately
does not keep it's promise The green
backs are not redeemed in gold or in any
thing else. The government don't even
give the holders Understanding bonds
for them. The consequence of this fail
ure to redeem, is manifested in the fact
that greenbacks only pass for seven tenths
their face value. The depreciation of
three tenths represents the discredit of
the maker Of those broken promises to
pay The present worth of the govern
nent's credit is but 70 per cent. The
public believe the greenbacks will be re-
deemed in gold. 4 dollar drawing no in
terest and payable three and half years
hence, is worth just about what green
back will sell for-seventy cents indica-
to four years hence before the govern
ment will be prepared to announce specie
redemption. If the government would
agree to redeem greenbacks one year
hence, they would instantly rise to the
value of SO or "a cents in gold. If the
public were certain they would be re-
deemed in two years, they would appre-
clate to about Sc cents. But the doubts
is so great and the time so indefinite
that they only possess seven-teeths their
nominal purchasing power.
1t the government had in it's treasury
$3.50, 100000 of surplus gold, it could
proceed at once to redeem its green
backs, or if the amount outstanding
was reduced one half then it could
redeem with $lS0,OOO,OOO of gold in the
Treasury. But on the other hand, if the
volume of broken promises shall be
increased to 500, 00O,0 900, as proposed by
the Times, the day of redemption is put
farther off almost hopelessly distant
and the value of greenbacks must newt
ably sink deeper down. Swell the green
backs to 100000, 900 and who can name
time when the government will have
that amount Of gold on hand wherewith
to redeem them?
In the calculation of the time of pro-
bable redemption of the present volume
OF greenbacks, the public haye fixed
their present worth at seventy cents.
But suppose they were increased to the
sum OF 500, 100000 what then would
be the present worth? Somewhere be-
tween forty and fifty cents, say forty-fve
cents, as the public would believe that
SIX or seven years must interview before
redemption could be possible, and the
present worth of such due bill is but
forty or fifty cents. The present pur-
chasing power of all the currency is equal
to S462, 000,00 of gold. But DESTROY
the banks and increase the irredeemable
greenbacks eighty per cent, and they will
depreclate twenty-five cents on the dollar
and the whole currency will be worth but
1921, 200, 900 in gold. BY abolishing the
National Banks in the expectation Of saw
ing sic, 100000 a year on their bonds,
the people will lose $l65, 900, 600 on the
present worth of their currency.
The only way to prevent this deprcia-
ton would be to make the greenbacks
convertible into bonds, which would keep
them up to the level of the bonds; but
on the other hand two thirds perhaps of
the whole volume of greenbacks would
be changed into bonds for the sake of
the interest, and the greenback circula-
ton would be considerably less than at
present, so that nothing would be saved
to the Treasury in the way of interest. on
bonds
The value of bank note redeemable
in greenbacks is of course the same as
the legal tenders, The amount of bank
circulation might be doubled under a free