The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-01-14

As TO cheap currency, he argues that all |
financial writers agree that paper money "
tbe cheapest medium Of circulation liut white |
our present currency IL cheap enough as re-.
CARDS the cost of its supply, aud because It |
suffers no loss Of interest rs capital whts in |
circulation, he maintains that IL fails 10 bs ~
In another sense--in the sense OF the euor-
nous price at which II, ~ money or capital, |
Is furnished to those who use IL. When
called into use AZ Representatives Of capital
our money Is enormously dear" We all
know how high the rate OF interest ordinarily
Is in New York and other commercial centres;
but, as General Butler says, away from the
eaboaId cities the average interest is twelve
per cent, while in the Southern States and
some other sections IL rises to over twenty per
cent. In order, then, to have cheap cur
reDcy, it issproposed, first, that the Government
shall withdraw the present legal tenders,
and, as they are withdrawn, to substitute for
them the Certificates of value" as a oiroula-
ting medium and lawful money. These are
to be based on taxes, which are estimated at
about three hundred and fifty millions, the
amount nearly of the outstanding legal tender
notes. The certificates of value" are to be
received for all taxes, whether collected from
internal revenue or external commerce, sud,
therefore, will be redeemed in that way every
year. In fact, there will be but one kind of
lawful money. General Butler thinks IL
strange that the Government ever should
specie, in which to do its own business, and
stranger still to enact at the same time one
only Tor the people. He regards this anomaly
as the principal cause OF keeping the currency
deprecated.
lie proposes next to take from the national
banks all power to issue notes to circulate as
money, leaving them banks of deposit, loans,
and discounts. OF course, in using the Gov
erpment certificates as circulation, they would
| be subject to no tax on it. Then, as it is evil
| dent that three hundred and fifty millions of
| certificates of value' would not be a sufi-
cient amount of currency for the business
purposes of the country, he proposes to throw
| open the privilege which the banks have of
obtaining money from the Government to
every man or association of men who can
furnish the same security the banks do now
for the money so IeCeived-that is, any
one owning Government six. per cent. bonds
may go to any public depository in the United
States, and, lodging them there as security,
shall receive Certificates of value" to the
amount of ninety per cent. of the par thereof
! to be at his pleasure reconverted into his
| bonds at any time after thirty days. he pay
| ing to the Treasurer interest for the money
! received at the rate of three dollars and
sixty-fve cents per annum. This is his pro-
position in brief for cheap and uniform
| currency.
General Butler argues that this would not
| X
| that might appear to many to be the result;
| ''for no one will pledge this species of capital
| In Government bonds for three sxty-ive per
cent. on ninety per cent. of its value, unless
that money could be safely and proftably
invested as productive capital, or, in other
words, unless the business needs of the coun-
| try actually required it," The rate of inter
est, he holds, would act as a certain regulator
| OF or a governing power over the amount of
the circulating medium. 1t will be seen, of
| course, that this involves General Buffers
other proposition of an elastic currency; that
is TO say, the amount in circulation would be
more or less, according to the demands of
business and the rate of interest. He main
tains that this would be a stable currency
nevertheless-stable in its value and relative
to other values, though it may change in
certain localities, just as the currents of trade
change the volume now in certain parts of
the country at different seasons of the year to
accommodate the demands of business.
Referring to the resumption theorists and
their impracticable projects, he shows some of
his characteristic satire. He remarks-"One
says the way to resume specie payments is to
resume. Suppose the physician should say
to the sick man, The way not to be sick is to
be well; might not the patient ask his doctor,
How am to get we'll So, few years ago,
one may remember that the way proposed for
the Union armies to get to Richmond was 'On
to Richmond; and l trust may not be con-
sldered malicious in calling to mind that our
armies found some difficulties In carrying out
that suggestion, which resulted in such dis
aster that it was to be hoped those who blndly
advocated 1t would never again dogmatize
upon any subject the difficulties of which they
neither appreciated nor understood He is
opposed also to what he terms the other Sim
possible" schemes for forcing specie pay
ments by slower process, and genteelly cuts
up Mr.. Morton's plan. He concludes that If
| q return ha fha p1p adx,
for our financial evils, then there is but one
plan by which it can be accomplishsd-"We
must wait and grow to it,
After taking very interesting historical
review OF the commercial and financial history
OF this and other countries, showing the fire.
quent fluctuations in value, suspensions of
specie payments, financial crises every few
years, general bankruptcies and ruin and wide
spread distress caused by these, he asks is it
desirable for this country voluntarily to re-
turn to the old system after we are partially
tmancipated from iii Altogether, General
Butler has taken bold step in advance of the
views of tinanciers and many of his colleagues
in Congress. His speech will create fu,ter
among the bondhOders, national banks, and
capitalists, and will open the door for great
discussion. However much his views may be
questioned or opposed by the old school finan-
ciers and political economists, there is no
doubt he has struck a chord of popular senti-
ment, and that he will be recognized as the
leader in this new movement for an American
system Of currency and finance.