New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-13
.u,u ,o,x n.uv TpRUNE WEDNESDAY, JANUARY la loo.

Is rose to a. contemplated that ths nn. narrative
~ az r,rnoT on the recording the failure OF ~ 81
5.s il large s. sn1 ,p AS'S Rs banking
accumulation on moderate obse Ia. attained
& ,ne,. in evidence 10 l8g7 addition to an Ini.re o. VI
,aee MISSION frequently paid raising the charge
10 o or 30 er cent according time which bills had to run
Docs ANYBODY believe that inconyertble paper cur
rency do worse than mat II 80, iof a of the
proposed system Of currency need not employ tne %
Of the House long upon the details OF i tse change
would require the collectors OF taxes on tne t %
every month beginning the LIST day OF July ncd notes
received by them in previous months when sno ;,
never be ressued but instead, certificates OF viuu,
nronosed I'm paymen Of the expenses OF the
puId also require like return OF all the BANK notes
collected for taxes and they should continue TO ne re-
January next at which time their receipt Tor terh
taxes should cease And upon all the amounts Oh p
~ the banks by the Government and retained from tnc
Interest payable the bonds by which the pls
cured until they redeemed by the banks III cel,im
~ yalue or in three per cent certificates issued IN
nursuance of the act Of March 3, 1861 ana the acu
uy s. 1863 when aliquot proportion OF such secures
shall be returned TO the banks redeemlng thenI
After the first day Of January the Controller OF tne C
rency should charge TO tne nahks ve Per @ IN the
on al bills heretofore issued to them not redeemed III to
manner before stated, at the option OF the pah u
nish instead thereof the certncses Vi , money
bonds pledged for their redemption the LawLul iony
of the Government. IL the National banks s.ouu mV
choose to receive money IN lieu Oh tne With the
Controller OF the Currency 10 secure then a,e W D
turned Experience has shown that ~ uscd
only TO the extent OF the convenience OF tne PeoP
is now the practice OF all countries WHEREIN ~ - nd
~ metal go 10 debase il In comparison win tue su
ard Of value prevent being boarded OF
used in the would propose. tnerelore io pncv
Instead Of paper, should be in Approximations oi
ten cents and SsTeto,oro ,sed made Of silver al
nd with some OF the metals TO such extent as 10 pre-
vent boarding or ia godempon Of the fractional
currency now in use, which paper fractional currency
after the st day OF January next snouu no. vi h
except the Treasury for exchange Tor te
m described. On and after July i, the Goyenmeht
should be prepared to issue money 10
TO be renyested into the same bonds al inc pleasure VI
the holder. one and not lnconslaerape az h Ua
this gradual but entire change IN the currency OF te
country certainly enough to pay all possible az
tending it, is the detection ana VI al Tue
forceres OF bank notes and fractional currency now III
circulation IL is well known there is now, pacucany,
no redemption OF national bank bills They are rarely or
never returned the bank that Issued them O redcp
non so that no test DO applied as 10 commences
Large OF them having been Issued on te SAINT
dies and vnettes cOunterfeting has been greatly iae
taedspecaly this true OF the fractional currency OF
the United States which never comes PACK 10 Tue rea
ury in any considerable quantities But the exchange
herein proposed would OF entirely extingush the
counteTfeits circulation, and render all the prep
plates and yignettes Of the forgers useless ana
yaueess IL has been assumed that the reason our secu
rites abroad do not command par because We not
rssnmed sneeie payments here. In that may
be true for II resume specie payments. ana were ca
pable OF continuing that resumption, our bonus WOuIu
command par because my "ouiu a. h ,boS ahrosh
But II seems that the defect OF the reasoning wch
makes onr honds abroad less than par because
rency here rs at discount that ii mistakes the effect
for the cause whereas, the truth Is thst our
discount because our bonds are seng AZ - W ol
controls currency here In its relation 10 gOd-not our
currency here controls the price OF our Donus
The mistake is In supposng that the worth OF "
OF our debt Is controlled by tine price o
S3SOOcOOOO of notes That the pre-
mium ON gold is wholly controlled by the price OF our
bonds abroad cOncusyey demonstrated al he break
ing out Of the war between Prussia and Austria. our
tan MARI col IL
ing the theory that the premium on god cOud DE kept
down by increasing the supply OF gold the market mere
thirty millions OF gold In the vain endeavor TO prevent
rise In tho premium gold corresponding TO the IAN o
the Treasury but In vain The premium on gold went up
until it came In exact equilibrium with the price OF our
~ the seeretary he might as well have attempted TO
raise the water In the OF tea kettle above that IN
the Kettle itself by pouring water IN the nose as 70 have
sid his gold for the purpose he did. Again. when the
war suddenly ended and the price OF our bonds went up
in Europe the premium On gCq zen mere tS nir ca
bonds Europe at "a and rs when the three per cent con
sSS q Ensand are ~ ecanSe ' of the doubt as to De
credit OF the Government or s ,nisn'oh q, , nn
not the true IL would be moro nearly
10 Ca h hS eys n o oT oSP %S
10 pay let ask why are our gold certificates, which are
only promises OF the Government to pay gold on demand
AT par or "A small premium at home well as abroad
WHY does the supposed doubt OF the good faith and
ability Of the Government affect themi Clearly because
the transportation OF gold and the supply Is not In
cess Of the demand Bearing on this same topic. VIII
"a in London and at Is in Frankfort Is IL not for the
same reason tat III fgauu teir ree per cent eonSos
are while six per cent bonds are at a. Ii Is
axiom In political economy that supply ana demand al
ways regulate price. Now. our bonds ana the Eng
purposes or as mediums OF exchange but Tor Invest
inent by those WHO desire to put away surety for
or in annuity offices. Now. the debt OF England, although
considerably exceeding ours. mas been contracted
through long series Of years In not very large compar
alive amounts and has been absorbed for the purposes
OF investment gradually until the supply does not much
exceed the demand for investment We all know the
natural preference Englishman would have for the
securities OF his country over security at distance
Of Which he knows but little We have seen individuals
loan money on mortgage at ye per cent IN our Eastern
cities series OF years when by sending their money
to the West they might loan at ten per cent ON equally
substantial real estate there This Will explain why the
Engishnan should prefer hsown securities TO ours
higher rate Of interest as matter OF but
at Frankfort rs which at only II In Lon
don. Why does not the Englshman send his
bonds 10 Frankfort and realize the difference
In period OF three years threw $500 10000 OF SO
curties payable short dates, to be taken up invest
ments upon the markets Of the world and although IN
doubtediy, they largely affected when first issued
by the doubt OF our success in putting down the Rebel
yet after the Rebellion was fully spbdued they
nearly their present figure and have remained quite
stationary ever since But II am right that they arc
only wanted in Germany, in England, for the purpose
Of Investment then Will be seen at once That we nave
ssed for Investment supply OF bonds largely In excess
Of the demand for that purpose. And Germany has
national securities bearing the same relation 10 ats
people the cOnsOs to the EDglshman, they are more
ought after the Continent for Investment, ana there
fore higher In price, and our bonds being held IN
England for Investment only! tie holders do not care TO
change their investments Tor the sake OF the difference
price. | do not doubt. II there were no more u
our bonds to be procured at any price abroad
that those already there would immediately ap-
preciate 10 par II not To premium; or. N
other words the supply aud demand would regulate tho
price There is curious illustration OF this I'm the fart
that small amount OF Massachusetts godb bearing vo
per cent bonds subscribed for by single house
London at 49, while the bonds OF the United States which
had not only the security OF Massachusetts, but all the
rest the United States behind them, per cent,
selling at "a. The Massachusetts, bonds all
taken for single investment and the supply did not
exceed tine demand There is another element which very
largely affects the pdce Of bonds and that is the
option the United States To pay Its bonds within
five years. Length OF time for investment Is large
element OF value The very theory OF the British consos
Al bn nd drea fhat