New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-13

revenue. 1t is difficult to see Why the Goverhe' oV
should have established two kinds OF lawful money III
which TO do lis own business and stranger STILL enact
only for its d 9di hd the nied states
nearer to goodwill very considerably diminish, n no,
entirely prevent the OF tne S nnS silver
will then take place as commodities to be eXehabgeu
abroad according to theirvau in weight merchandise
Indeed moments reflection will convince any man mat
this has always been the when gold used III hu
for the payment Of foreign debts. One principal arg
ment IN favor or currency Daseu Oh Sr I sarae
been that currency ought 10 DE OF Tue SAINT
ts~in order that we may be able to pay our for,
eIgn debts IN our own CON- But III iaet our 0o,
is never used abroad the value we have stamped upon
it, or for the payment Of foreign debts III Is always re-
duced the value of many ounces OF gOu OF CERTAIN
fneness and exported as buion-a convenient anu sHo
form OF merchsndise against which bills OF exchange
may be drawn-and that value fuctnates very ma'eray
in different countries As an example take Japan, MeIe
the standard ID value IS silver IN 300 ou bet eold
Simoda, Mr. Townsend Harms, informs US Una, gol 30
only a to 81 in silver. while with us IL hods py aW as
pr of our specie standard the rate OF about Joy 10
te m japan % ounces OF silver would purchase an
Yer IN prchase an OF gold. How, then, can IL DO
said that gold is the standard OF value OF the wou, e
in ons country, which absorbs large amounts Oh our
specie it stood deprecated in comparison with slver
at our standard at nearly so per cent ana IL is o h
countries save England The experiment. otissulng money
based on taxes alone its redeemabe value mas peeh
soon after the Revolution, North Carolina having no
money, for the convenience OF her people iSse, say
$500 900 i'm State notes. receivable in payment Oh taxes
of course she could not make them legal teh1er ar
though her annual taxes were only ABOUT s1Ov, eso
notes at took their place at par value, anu Dec
In practice convertible into gold although no man could
demand gold for them. They thus remained until tney
were gradually out absorbed no new issue oelhR
authorized and the bills of the State banks sPOH as
place. assume That these certificates OF VaIue as
Circulating medium will at once take their place as
nearly equivalent gold They will be redeemed IN he
payment OF taxes every year 40 not III 20 bn
an equal amount There is an objection TO them as COM
pared with the present greenback ana tha rs 'e
ernment would procure gold to meet Its interest
and pay the difference between the gold ana 'e %
cate But let us here reflect mGmen nStained bv
polh
the merchant borrowing 1t upon the Ooo taar
ments note at IS per premium aud 1t is very clear
that the difference between proposed certificate OF
value. greenback aud gold would fn tn comnensa
ton for this apparent loss to the Government as VIII De
hereafter 1t may urther be objected that making
these certificates receya BILE for duties lnsouch as tney
may be below the par OF go Id, would to that extent re-
duce percentage of the tariff This II an evil woeu
cure itself AEy considerable increase oi iiP1ta
ton by calling for more currency to pay the duties,
would enhance the price Of that currency ana theTeoe
bring it quite up 10 gold Besides as the ACT Is 10 20 INTO
operation at future day. i it were s1PPos sSa t neTs
would be any appreeable difference DewGem .e ,d b
held up until that time, when the sudden influx would
materially enhance te Hne f take from the National
banks all power to issue notes to circulate as money
and discounts, but not OF issue; OF course to be
relieved from all taxes .q. on SrculatOn co ~
i that Raue tho above pGSposeG cSa
atng money, would not be suicient amount
therefore propose to throw open the present privilege
which the banks have Of obtaining money from te Gov
ush precisely the same security that the banks now 10
for tie money so received from the Government Or IN
having six per cent interest coin may 10 any public
depository in the United States and lodging 1t there as
backs 10 the amount Of per cent OF the par thereof to
be at his pleasure reconveted INTO MS sond AT any uhe
he receives at the rate OF .O365 interest per
annum in coin thereon until he returns
when he shall receive back his bond. Assuming
s5OOOOOO Of six per cent bonds to be outstanding ana
rency demanded would give N575 100000 being 90 per
cent thereof possible amount of currency TO DC Is
amount wonId make the currency by far TOO re-
dundant Would or could the business Of the
mitted that so much currency would not be
needed. and in practice no such sum would
held abroad would not return until inore valuable
here than there Another large portion, held for pur
therefrom without very large difference between the
rate commercial interest and the rate at which was
ton in practice Of this currency would be
the rate o. interest paa 70 tIe one nor o
the Government anybody else, for money mt $500
enS sep Se on s ge yer and
capao other words unless nr e s 1
prosecution In that case and for that pur
pose il is difficult to say why the currency should not be
extended so as to meet the necessities OF tho people,
when duly restrained by the rate OF interest
the the issue Of Government money. Tho rate
OF interest would act as certain 'reguator or
|
As currency would be secured TO the holder by the
pledge Of all the taxes customs, wealth. resources ana
power OF the country As capital toaned, IL WOun DC
secured to the Government by its bonds at 10 per
cent below their value aud $500 per cent interest
the difference How could II differ in value, except
being better from the bills OF the national bank, II has
greater security, because all customs duties
taxes II would nave-what the bank currency has not
| elasticity Whenever 1t wanted and the rate Of
and the interest would accrue to the Govern
ment; whenever IL was not profitable for use to the
holder the rate Of interest falling TO $500 per cent In
gold he would return his money and receive his bond
and the Government would have lost nothing by the
transaction, but gained the intervening interest Assm
ing that and above the s35OOOOO which 1t pro
vded the Government shall issue for its own purposes
that average OF $0000O0 should be found necessary
TO he used money then the Government would save
slS25o0OO in gold interest upon that SUM- or, In other
six per cent indebtmen that, added To the $ls0O000
paid to the banks interest the bonds they have
per cent the slOOOOOo lying idle in the Treasury
the saving would be 2OOOO in CON- instead Of the loss
money 10 the banks If it be assumed that the Govern
ment under the proposed system, would have 70 pay
It's gold bearing bonds there surely in this saving
would be found means make up the difference II II
its only element OF huctuaon In value is the fact thai
may he Increased decreased by act Of legislation But
all know how difficult II TO get acts OF legislation
passed to alter the currency even when the country IS
suffering grave evils 1t is not to be assumed that
the Representatives OF the people In both Houses
OF Congress Will unite with the Executive wan
tie the values and currency OF the country quite
willing TO compare the fluctuations from legislation
the stability OF this currency with the stability OF cur
rency actually and exactly convertible into gold under
the best circumstances In which such currency has
been administered for highly commercial and manufac.
turing people. | trust will complain If compare
this currency with the notes Of the Bank OF England by
the act Of 1884, known Sir Robert Pees act the Bank
of England put upon exact specie basis, l. C..
more notes could be issued than she had gold In her
vaults to pay in addition TO those notes which expert
ence had shown in of panic had would
for redemption for beyond that amount the bank
not allowed TO Issue single without corresponding
tho
and that amount Of gold to be kept there by altering
her rate OF discount, which IL claimed would
raised or lowered contract expend the business
OF tho Kingdom In thirteen years and five months
following that act. from September T. 1874, to February
A. the altered rate OF discount htysiX