Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1869-03-31

they will be boarded. Another, and
still another monthly installment
will be sent out, received and treated
in the same way, but not a dollar of
1t can be absolutely withdrawn from
use until the end of two years, and
then only at the rate Of ten millions
per month; and it will be only at the
end of five that the whole
amount can be funded, while the en-
tire three hundred and sixty millions
can, and, if needed, will be Kept in
circulation till the end of the latter
period. There can be no doubt,
however, that the c~Ontractile force
will be amply sufficient under the
plan here proposed to cause a gradual
but effective withdrawal of a large
part of these notes soon after they are
put into circulation; but rs they are
thus withdrawn prices VIII fall cor
respondingly, so that less and less
currency will be needed for the trans
fer of commodities, and therefore,
although the currency Is constantly
diminishing, the demand for it will
decrease i'm at least an equal ratio, and
the money market will be as easy rs
before the contraction commenced.
OF such a result no N acquainted
with the laws of money and finance
can have the least doubt.
"HOw RESUMPTION WILL BE SECUR-
Ed"
lift be asked how the resumption
of specie payments will be secured
when the compound notes have been
finally funded, it may be replied that
when that event has taken place there
Will be mo other circulation than that
issued by the national banks, amount
ing 10 three hundred millions, which
will be at least equal To the natural
amount required 10y the business
wants of the country, and will, of
course, be nearly or quite on a par
with gold; but to assume that il will
be so, Congress may provide that the
banks shall retain all the specie
thereafter received for coupons until
they resume payment, and if neediui.
the hanks may be prohibited from
the compound Interest notes rs Il
part of their reserve of lawful money.
That would compel the banks To
supply themselves with the necessary
dAAAbnllN~ " rINNElts II wiz IL
be found practically that as the
volume of the currency is brought
lei to it, natural limit, much of the
gold forced out OF the country during
the expansion will he returned (as
was the case i'm lS57-Sl while all our
own product will be retained at home,
aud thus the banks, without effort or
expense will accumulate all the specie
their wants require.
ECONOMY OF THE MEASURE.
"If it be objected to the foregoing
plan that it Obliges the government
10 pay interest on its notes, it
may be replied that such q result is
unfavOrable whenever the greenGacks
are funded, as in some form they
must ultimately be; the government
has promised TO pay its notes, and Us
it is not able to discharge them with
specie, it is bound, in common equali-
ty and honesty, TO pay interest upon
them until it caIi. The transitional
plan here proposed, by which,
through the issue of cOmpOund-inter-
est notes, the floating promises Oh the
Treasury will be eventually funded,
while one that is perfectly honorable
will be found, il is believed. highly
satisfactory to the public. Certainly
it will be an economical arrangement,
because the government, so far from
interest, will gain largely 10y
the operation, since it must result in
rapid restoration of the national
credit to that point at which the
whole public debt may be cOnsOlida-
ted into one uniform stock at not over
four and one-half per cent. For the
want of a ~well-settled and iudiciOus
for resuming specie payment
the nation IS now losing more than it
gains in the annual interest upon
some three hundred and sixty mill
ions of dollars Of itScirculating notes.
UNLESS the country is to suffer for
indefinite period all the disgrace
and loss inseparable from deprecated
credit; unless it is TO be given over TO
all the evils and dangers incident to n
currency, some definite
and efficient measure must be adopted
to secure its restoration to a specie
standard. The foregoing plan is
therefore submitted. with great def
creme, yet with entire confidence. to
your consideration, in the belief that,
since it does not arbitrarily Withdraw
the people one dollar of curren-
cy, but simply permits them to invest
their greenbacks, if they choose, i'm
the course of five years in ten-fOrty
it is more likely to be approx
ed by the law-making power, more
safe and practical, and more i'm ac-
cOrdance with the laws of trade and
the industrial interests OF the nation
than any that has thus far been
presented to the attentiOnO of Congress.
Faithfully, your friend,
"AMASA WALKER.
WASHINGTON, March IS, 1862"