The New York herald., 1869-01-13


and tine memory OF every business man will furnish
many more. | will compare the probable. nsy the
possible fluctuations In value OF the currency here
proposed because or legislative Interference with
the fluctuations or our own currency when on spe-
Gle basis or the changes in the value OF money In
England, where the bulli0nists must look for the
most perfect exemplar Of that system OF convertible
paper back to the miseries which it causes they
would fain force their country, and am content, 81
son. II objection is brought against the currency
hero proposed either that 1t will encourage
speculation or bring disaster upon mercantile
business or that the rate OF interest paid for bank
accommodation will be increased to the borrower In
COMPARISON with paper money always convertible
INTO gold, VIII not trust any argument OF my own
In reply but will produce ilconrovertibe authority
wnicn no buionist dare dispute. The suspension Of
mentary investigation or the workings OF the fnan-
ca system OF paper convertible into gold at pleasure
which was most eaborately. impartially and ntelli-
the report or the committee to the House of Lords
truthful portrait Of the effect upon business and the
vertbe into specie Hear the statement OF the facts
developed before that committee - 9bfaH
ssus that e those who may have expsctsd that the
specie b: Would ssosass isI prevent sour
contrast ysa ss and s ma.s Produce srss
Gus dMsappontment M
M K % Se PLACED .s he commsss Arc condsn
other Witnesses that specatons carried c
80 extent = IN ss And A' beginning Of
me ss M we're relied on - :scuf,y agsn. violent auS
antcpaon concusvey proved bv the fact that while the
IN @ but Two
ter to two and per cent the difference In ls
II contempalsd the number and the esten. Of
usye of he M Ss sscaru s m
O. sn,ryshres houses comparstysy M " Iarge business 70
reply. sess
II the power or obtaining banning accommodation on
ers were 70 DC promoed py me act o.
s cannot De said that this important obsst has been AZ
an interest Of nine or ten per cent Commission was also
cent, according to the time which bills had 70
Does ANYBODY believe that an tnconyerbtble paper
currency can DO worse than thati s'If 50, for hm
now 4 SHOCK TO BUSINESS CAN RI PREVENTED.
Having given the distinctive features Of the Dro.
time OF the House long mon the details OF ts exc
cution To prevent shock to business In making the
lhe frst day Of every month Seuinnno the drst dav
OF July next to return to the public repositories ali
the legal tender notes received by them in previous
1certificates of yane y as proposed in payment of
the expenses OF the royernment would also
rsgniTe 1s IKE returns q all the bank notes col,
TO be received 40 long as any were offered. mn to the
list day OF January next at which time their recent
amounts Of hank notes 40 retnrned Ave ner cent in.
terest shall be CHARGED to the banks by The govern
bonds bv which the hills are secnreI mntl thsv are
redeemed by the banks in certificates OF value or in
the three per cent certcates issed il pursuance Of
the Act OF March Is67 and the act ~ Univ a 1864
when an aiiGuot nronortior Of such Securities
shall be returned to tha banks redeeminu tham.
Currency should Charge to the hanks i've ner = cent
interest ON all the bills heretofore issued 70 them moi
ntH % ~, n tne manner before stated or Of the
tincates Of value based on bonds pledred for their
redemption. the lawful money Of tf,e Sovernment.
II the national banks ahouid mt CHOOSE tn receive
money in lien Of their notes. then nnsn tneir retnrn
10 the Treasury the bonds lodged with the Comm
trOller of the Currency To secure them ara II he r
turned Experience has shown that fractional cur.
rency OF which there Ia say N30 O0O OO0 in cIrcua-
ton Il used ony to the extent Of the conyenience Of
the people, It Is now the practice of all
countries wherein 1t is made OF metal
no to debase It in comparison with the
bosred exnorten or use IN Tho ars nud vns nras
pose therefore, for convenience or handling that
the fractional currency instead OF paper should be
posed OF tokens In the form OF silver coins hereto-
fore used made Of silver aIloyed with some OF the
poraton or nae IN the srts ~ ass,a wScn shoud
be issued IN redemption OF the fractional currency
now IN use, which paper fractional currency after
the 1st day OF January next should not be received
except at the Treasury for exchange for the tokens
herein described. On and after July the govern
mcnt shouId be prepared To issue money in ex
change for bonds "a before at rnrth and to a allow
the money so exchanged to be reinvested into
the same bonds at the pleasure OF the holder
One, and q not incOnsfderable advantage Of
this gradual but entire change in the currency
OF the country Certainly enoug to nav ali possible
expense attending 1t, IL the detection and extu-
guishment OF all the forgeries OF bank nDtes ana
fractional currency In circulation. 1t is well
known there is now practically, no redemption OF
national bank bills. Tney are rarely or never re-
turned to the bank that issued them for redemption
so that no test can be applied as to genuneness.
Large amounts OF them having been issued on the
same dies and vignettes, counterfeiting has been
greatly Is this true OF the rac-
tional currency OF the United States which never
comes back 70 the Treasury In any considerable
quantities. But tho exchange herein proposed
would at once entirely extlnguish the counterfelts
now in circulation and render all the preparations,
plates and vigpettes Of the forgers useless and val
neess.
WHY OUR BONDS DO NOT COMMAND PAR ABROAD.
II has been assumed that the reason our securities
abroad do not command par Is because we have not
resumed specie payments here. In one sense that
may he true; for IL we resume specie payments and
were capable OF continuing that resumption our
bonds would command par, because they would at
once be sent home for sale commanding higher
price here than abroad But It seems TO me that the
defect Of the reasoning which makes our bonds
abroad less than par because our currency here IA at
. discount, Is that 1t mistakes the effect for the
cause, whereas the truth Is that currency Is