, 1869-01-08
EpkCIE RESUMPTION.

ottr way sl'Ra lhetr payment |
AID ca, tt|tntion, l.ul stur.oa'.. ,tutn-
ncE's. MoEFeifs. NanuIa'a ur tl.crtry'a
plan Of Resumption lss adapttal. ami from
the msmant the Treasury tioors ara oprn.
ca Tor the redemption 0t lha notrs, they
will flow back into lhv poEsehsion Of the |
government and out al circulation, and |
neither of these plans provide any mc .na
Tor filling the vacuum thus created.
Tbs government, unlike q baeh, does |
not loan money 10 merchants and manu-.
tacsurers, discount commercial paper, and
lake collateral security for tho money it |
parts With. When it pays out cash, It
does 20 to dcfray current expenses, in
pursuance Of lawful appropriations. a
bark, on t4e other hand, loans money to
traders and takes security therefor; aud
once every ninety days, on an average,
the money thus loaned Is paid back, with
interest. 4 bsnk can therefore redeem
all S notes, and pay them out again four
times In q scar, without loss, and with
profit on each transaction. But the gov-
trnmcrt has no resource or income ex-
ecpt from taxatioD. When it pays out
money, not dollar of it ever comes back,
except as tar collected upon the pro-
duca, property and increase Of the pec-
pic, by the costly machinery Of the rcve-
nue. 81 stem.
M plan Of specie resumption has been
deviss d which will not subject the gov
esnment to loss. 4 greenback worth
seVcn'y-tWo CENTS in gold can not be re.
deen cd in specie at psr without loss Ct
twcnty-tight cents 10 the Treasury. The
coin can only be procured from the small
surplus of gold from customers, and by
stliicg bonds Tor what they will bring in
geld. The surplus gold IRON duties, af:cr
paying interest on The debt, amounts only
to S:}u000,000 per anrum, and would re.
4ui1e fifteen years to redeem the legal
tcntcrs and three per cent certificates
outstanding. Ten-torly bonds only sell
for about scventy-five cents and five.
twenties fos seventy-eight cents IN gold.
Theproceeds Of q thousand-dollar bond OF
the latter would only redeem $3.50 OF
reenbacks. If the government, AFTER
rcdceming 100 millions Of loyal
tenders, sEoull pay t6em out
again. il would be obliged to rcd
them again at q further loss by scllipg
bonds st q discount. Orce redeemed
they must, therefore, be cancelled and
..G';3jed. This is necessity finn
which there is no escspe. The oulj
1caton the government is now able 10
pay out grecnbacks Wl'h.ut loss ~,
ihat 1t refuses to redeem them Or
give anything for them except to
receive them Tor internal taxation. The
momcnt it undertakes to pay coin it
must cancel them as fast as redeemed to
prevent them from coming back again
and again for coin redemption, with II
loss to tho T1casu1y OF each occasion.
Hence, specie redemption Of grccnbacks
neans final payment and cancellation
This brings us back to thr starting
point, and raucs the question: How can
The Treasury notes bc retired at the least
cost and loss 10 the government, ant
: without producing q contraction OF til.
currency that might prove destructive Il
.. tho bvsincss interests OF the count1ye
A very simple and cfllcicn. method CAT
| LIT EtkkN4tlt3 AAA ~ AAf oA% = I'll NR4A -
better ono VIC shall take pleasure iu pre-
scn,ipg 1t to tho public. II is this L.
; any existing National Bunk, OF any pr'
yatc bhnk, Or my ncw organization hay
ing tie requisite capital, which my or.
= ganizc Under The National Banking law
:, have the privilege 10 fcnd to tho sccre
:, tary Of tho Treasury legal tenders TO III
. amount Of fl,oUO tor any multiple thrrt
oi) and receive thcrctor ton.lortY bont
Let this bortl bu deposited with til
. Comptroller OF tho Currency In pltdg'
: WIN shall thcrcupon lssuc 10 the ban
" dcro.iting !, 90 per CEN: ot the amou.
: IN National hank uotes, which Me hsn
e cnn pay out In its bus!ness 10 Ill IL
vacuum, created by tllc withdrawal Of tb
- legal tenders.
- Wo hsyc nam.l % per ccat {
ba1 notes In cxhangc tor the boEds, III
cnusu this IL the amount allowed ua'lt
. tho banking law. The contraction wouI
:, therefore only be ten per cent, whie
- would be more thin misc gonu by tt
', enhanced purchasing powcr Of thu cu
!, ; rrncy.
~ ~ VI LII HlkA LAAt tAE EAL hi N44
:, obliged 10 reserve Is per cen: ot "lAwI
:, mon,y"ta all such increase Of notes, =
- reply that Ibis reserve will consist
;, geld sntl s,lver-for any plan Of re=um
~ tioI locks to that erd-and the banks VI
r. imu uediately begin TO prepare for it
-. keepit E all the gold interest they rcceiy
.c snn BY purchasing more. Elch bank w
~ ~ 1etain at The OUTSET whs. greenbacks
"a may require for redemption pufpo:
- u-5er the Law, so that there could mot
~ se16len, or even rapid. exch.pgs ofleg
- tcrJers into bark notes beyond q carts
aet proportion. Gradually the greeuba II
4, would be Withdrawn from circu'ati
;.h and their places filled by bsnk no;
!. gold and silver. The West. a
,;c South cnuld then establish n
rk banks, ard enlarge old OF
nv until tho:e sections Of the Union hal
has cured their fair aud legitimate proport
ate Of bark circulation. The taxes On th
&C. Few and enlarged banks would re!
Ldz, to tie Treasury fully oue-half Of the
the terest on the new ten-forty bonds. 1
ex. It it be objected that exchanging bo
en. fer g1esnbacks will subject the Treas
,Io- 10 q loss equal TO the difference Of the
ar te1est naid and taxes received, we
per swer that 1t is simply impossible to
deem tbe grecnbacks By any sch'
which the wit Of man can invent, n
tut rsying for them in some way.
ion. they are redeemed outright the gold
airy only be procured By taxation or by
usly Of bonds. No matter how long rtde
rees tion is put OF, the government will
i. to owe for the g1eenbaeke, and must So
ome. or later pay them. BY making t
was notes exchBngeable into tcn.torty b.
WAT, tie government secures forty J
the in which to pay them, and
lnce, jtducfirg the banks taxee, the int
.kfn- will only be Two and half per cent,
his do not conceive that II is possible fl
nder government ever to find chcapc
one easier mcthcd Of retiring its psst
IN OF ditgraccd .notes, whose presence
come circulating medium keeps the C
part currency at shameful discount, m
Prtsi' fiuciuatiDg and unccrtatn vslue. III
i bis plan propotcd tho duty snd burde
ut on spccie resumption arc rolled on
arm ba,ks, wl,ere they properly belong,
nc 60 i.ihe legitimate tusIncs, Of banks
,!arcd only to discount Other people. uotcl
Ibis 10 redeem tbcir own. Their voca'
enc. TO loan money, redeem their no'o
n hits cctve ii positr, and buy nnd etll excl
IN tho ull ct which ID foreign to tho tunnts
cncral gorr1n,n' nj. wlosc business to 10
.H.,-. Ihn@a AH$N