Orleans independent standard. [volume] (Irasburgh, Vt.) 1856-1871, 1869-01-19
Speech by Gen. Butler.

Gen. Butler has lately made a great
speech in congress on the finances, a
portion of which we give below:
THE GENERALS PLAN FOR CURRENCY.
Observing that the amount of legal
tender notes now issued by the Gov
ernment-say s35O,0O0,OOO-are We
ry nearly equal the amount of the tax
es and duties to be necessarily col
lected by the Government for a seri-
es of years to meet our expenditures
he would propose that, retiring the
present legal tenders without shock
to the business of the country, the
Government shall issue an amount
equal to its taxes, say $35O,OOO,OOO,
of certificates of value, of convenient
denominations, not less than one dol
lar, which shall be lawful money and
legal tender for all debts, public and
private, which, by the law creating
them are not made payable In coin,
and shall be receivable for all taxes,
duties, and imposts of every kind
whatsoever, to be reissued at pleasure
under the conditions hereafter set
forth or in payment of the debts OF
the United States, and which shall DE
received for all public loans made to
the United States. These certificates
of value shall have appropriate Wig
nettes to prevent counterfeiting, shall
be in form like bank notes and shall
state upon their face their value and
the provisions of the law creating
them, so that no stupid person here
after, in order to depreciate the cur.
rency and have an opportunity to de
clare it "failed paper" shall present
them for payment to the Treasurer
of the United States expecting them
to be redeemed in any other manner
than is provided by law and stated
upon their face. He assumes thai
this change would at once bring this
lawful money of the United States
nearer to gold, and that it would con
siderably diminish, if not altogether
prevent, the operations OF the gold
room and the nefarious pursuits of the
gold gamblers.
The experiment of issuing money
based on taxes alone as its redeema
BILE value has been tried to a small
extent at an early day in this coun
try. Soon after the Revolution Nortl
Carolina, having no money, for tht
convenience of her people issued, say
100000 in State notes, receivable
in payment of taxes. Of course, she
could not make them legal tender
Although her annual taxes were only
about two hundred thousand dollars
these notes at once took their plac'
at par value, and became, in practice
convertible into gold, although NJ
man could demand gold for them
They thus remained until they wer,
gradually worn out or absorbed, NJ
new issue being authorized, and tn
bills of the State banks took thei
place.
His next proposition is to tax
from the national banks all power t
issue notes to circulate as money
leaving them as they are now, bank
of deposit, loans and discounts, bu
not of issue; of course to be relieve
from all taxes on circulation. Ev
dontly the s25o,OOO,O 900 of ''oertif
Gates of value" circulating as none
would not give sufficient amount o.
currency for the business wants of th
country, and he would therefore pre-
pose to throw open the present priv
lege which the banks have of Obtain
ing money from the Government t
every man or association of men VIII
can furnish precisely the same secur
ty that the banks now do for the mo-
. S1 oO lCCCIfCu lOuu lllC OOhCI uLDcu
Or, in other words, that every owne
of a Government bond paying six pr
cent interest in coin may 60 to an
public depository in the United State
and, lodging it there as security, Sha
receive certificates of value" l..
? greenbacks, to the amount lof so pr
cent of the par value thereof, to be
his pleasure reconverted into his Dor
at any time after thirty days, he pa
4 ing to the treasury for the money |
J. receives at the rate of .0365 intere
;, per annum in coin thereon until
D returns like amount of certificates
the Treasury, when he shall receiN
back his bond. Assuming $1,15(
100000 of six per cent. bonds to |
S outstanding, and every one should
o presented to the Treasury ard Gu
s rency demanded, would give $1.57,
q 100000 being ninety per cent. ther
of, as possible amount of curren,
to be issued.
The first objection striking Il
: mind is that this amount would NAL
:. the currency by far too redundant
Would or could the business of tt
country need so much? 1t can sal
|. ly be admitted that so much currenC
would not be needed and in practi,
no such sum would or could be take
e A large portion of these bonds a
t. held abroad and would not return u
=, til more valuable here than there
" Another large portion held for purp
s ses of investment would not be TEN,
ed to be taken therefrom without
very large difference between the "a
e of commercial interest and the rate
i, which it was obtained from the &c
e eminent; the controlling limitati,
" in practice on the issue of this cure
IS cy would be the rate of interest pa
n to the Government for it. The ow
e ers of this species of capital will ne
v er pledge it to the Government
IS anybody else for money at 65-1'
Is per cent. on ninety per cent. of
y value unless that money could
safely and proftably invested as pl