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


ne, except being better, from the bills
of the national banks? 1t has great
er ultimate security, because all Gus
toms duties are pledged for its re-
demption in addition to the internal
taxes. 1t would have-what the bank
has not---elasticity. Whenever it were
wanted and the rate of interest rose,
it would be taken from the Treasury
and the interest would accrue to the
Government; whenever it was not
profitable for use to the holder, the
rate of interest falling to 3 65-1OO
per cent. in gold, he would return
his money and receive his bond, and
the Government would have lost moth
ing by the transaction, but gained the
intervening interest. i
THE SAVING TO THE GOVERNMENT BY
| .. THIS PLAN.
Assuming that over and above the
350,O0O,OO0 which it is provided the
Government shall issue for its own
purposes, an average of $500, 100000
should be found necessary to be used
as money, then the Government wo'd
save $lS,250,0O0 in gold interest up
on that sum, or, in other words, be
paying but 2 $1,000 per cent. on
$500,00O,000 of its six per cent in
debtment; that, added to the $1S,0OC,-
600 now paid to the banks as inter
est Oh the bonds they have deposited
for their circulation, say 100000
900 and six per cent. on the $780,
100000 now lying idle in the Treas
ury, the saving would be 81, 100000
in coin, instead of the loss by the
present manner in which Government
issues its money to the banks. Ii it
be assumed that the Government, un-
der the proposed system. would have
to pay a margin between its certiti-
Gates and gold to pay interest on It's
gold bearing bonds, there surely in
this saving would be found means to
make up the difference.
EFFECT OF THE PLAN UPON GOVERN
MENT BONDS.
He did not believe that any adjust
ment of our currency for our own con-
venience would materially affect the
worth of our bonds abroad. Our
bonds are lower in England than the
British consols are, because the sup
ply of them is greater than the de-
mand for investment, and because the
holders of them are afraid they will
be paid Englishmen would natural
, lv prefer British cOnsols to American
, bonds, just as Eastern capitalists
would prefer five per cent. mortgage
at home to a ten per cent. one thous-
ands of miles distant Length of time,
too, in an investment is great ele-
ment of value. The very theory of
the British consos is that they are
never to be paid, while the United
States reserves the option of paying
, its bonds in five years. Our bonds
, are higher in Germany than they are
in England, because Germany has no
national securities bearing the same
2 relation to her people as the conSols
} do to the English people, and they
are therefore more sought for for in
: vestment on the continent. The sup
t ply and demand must regulate the
price. and undoubtedly if there were
+ no more of our bonds to be obtained
abroad than those already there the
Y price would at once advance to par
or above. 1t is an evil, however, to
c have our debt held abroad, and be
J. would hope that the tendency of his
J. proposed plan of currency would bt
l. to prevent any more OF our bond;
o from going abroad, aud call home
o those that are already there.