, 1869-01-22
rBR gFHATR FINANCE gcHEME

The new financial bill introduced by
Sepato1 Sherman will 1tt1act: attention |
ard elic.t discussion and thaagh.fui .cou-
Ei3erahop, becauar, unlike Bnt'er'a
schcme, 1t possesses elements Of conuon
seuse, srd IS easily couprehendcd. Bus-
l1's bill elaborated scheme which, If
adopted, left the government without a
dol1ar ct coin with which 70 pay the In
fesest upon its bonds or the salaries OF Its.
1oseign mintstess.
Ste1u,an's bill provides, FISK for legal
iztrg speeds contracts, but declares "that |
"this section shall no! apply to contracts
'sfcr tie borrowing Of currency, OK 10 the
"teneHxl OF extension Of an indebtedness
"under 4 contract already entered into,
~nnlets such contract originally required
*spayment In coin"
This provision Is intended to guard
against the danger Of creditors forcing
debtors to give their notes for gold. when
The original consideration was dep1ecsssed
currency, and il thereby obTiates the oa1y )
plausible objection We haYe eref heard
offered sgsiDst the sdoptfon of. the specie
contract principle II The provision Is not
p!s,r AID positive enough lei Congress
Ierftcs It 60 that e1tsraion'caunotb be prao-
tised. Ifpothipg el:c czn p.s., We hope
Congress will not adjourn until the specie
eouuact right is secured 70 the penple.
The Rcuud section p1osidca that any
helder Of grecnbacka shalt have the r:gh:
TO convert the sane into 1Q-4o bonds
when presentd 70 the Treasury In the
amoucs ot $50, or soy multiple thereof.
A1d /. is provided in Section 5, 1hst
a1Y bArk now organized. ~or that may
hereafter be osRHatz d. N ". issue noes to
tie smonpt 81 81 per cent Of The honds
I, deposits as security for tbe:r 1edenp-
Icn, ard that. it must redeem suca n aies
IN coin or the gold, Noes which
The government shah, Issue under
tie provisions Of ihe fourshT secacu,
which section provides TINT the govern
ment shall issue rotts -Tedeemabie' IN
coin 10 the amount Of the gold In shs
T1easu1y, and, with the p1ocetds pnr
chase ego bonds and caucs! them
The operation OF this sec!ion would b
this: Suppose there ara one aunirtd
millions OF gold lying idle u the 7Au4;
OF Ire T1tas11y. By issuing one hnn
drtd mslilons Of uotes, re3eemso'e !
eoid on dsmAnd, the government coul
purchase one hnrdred and twenty NIL
ioIs o! $50 bonds with the move
at their present market vaaue, and tae1'
by stop e7.2oo, 600, or The pr'ce pssd s.
Alaska, each ye&r, II the notes com
back for redemption the coin would t
In the Treasury to redeem Them, whe
thew could be ps,1 .out Agai
rs fast as tee coin To
un-1es flowed into the Treasur
THIS Is all plaipuenouRh; but sit terr
the banks TO commence fe3eemipg III:
uo,es In coin OF gtl0 nosez, when sh
can au1Y txchA1 re rtetr grecnb.eSs
1910 btnds, wc1th, aAy, rs +
cent, the effect would be 70 prodr
contraction pt the currency The
l. i l,tle oos1A1s oa ono polns,
does not di4tincuy x'ats Thes
,he banks may coauuue to
deem tteir p1ssens Issues in gteenb.
or in tie new gold notes but we't
pose The former is !nterded If -,
sts!l hare eecen kluds of cn1res
viz, ecld, silver gold notes, b
pous II dtem.bie in gold notes, gfl
baek., traction raitcusrurcy, ard bank n
1sdeemab'e In sre=uhaeks-.:he latter
Il bank noles wcr'h 25 per cent
than tho other sor1 oY bank noteR.
6enAcr CareH, oa New. Jersey,
posed The following enendment to
bill: ,,.:
in ~. - - % M, rsssen. p M ,es s.ne 70 III r.,
unit* staes ,a9 T,1l ri g.