The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-01-30
IEhMS, isINGLE ooPfEs sors. No. "

1uoAo nHFo Va OUbhlnlng money from t0f
government 70 every man Or association of
men who can furnish precisely the same se
curIty that the banks now do for the money
! 90 received from the Government. Or, IN
other words, that every owner Of Govern
ment bond paving six per cent interest il
coin may 20 TO any public depository ia the
United States, and, lodging il there az Sc
curity, shall receive Certificates Of value n
. .. greenbacks, to the amount OF ninety per
cent. OF the par thereof, to be at bis pleas
ure reconverted into his bond at any time
after thirty days, he paying to the Treasurer
Tor the money he receives at the rate Of
.O565 interest per annum in coin thereon
until ne returns like amount of certificates
20 the Treasury, when be shall receive back
his bond. Assuming I.75O, ,OOO. 900 Of six
per cens. bonds TO be outstanding, and
every one should be presented TO the Treas
ury and currency demanded, would give
$l,575 100000, being ninety per cent,
thereof, ~ possible amount Of currency to
be issued
The first objection striking the mind il
tnat this amount would make The currency
by far TOO redundant. Would or could the
business OF the country need 90 much II
can safely be admitted that 80 much cur
no such sum would or could be taken. "A
large portion Of these bonds are held abroad
and would not return until more valuable
here then there. Another large portion
held for purposes Of investment would not
De tempted to be taken tnerefrom without a
very large difference between the rate of
commercial interest, and the rate at which
Il was obtained from the Government the
4 HnnfrnIlHnn - .L~
sue Oh this currency would be the rate Of
Interest paid to the Government for il The
owners OF this specie Of capital will never
| pledge IL to the Government or ANYBODY
else for money at 3 IS 100 per cent. on
ninety per cent. Of its value, unless that
money could be safely and prohtably invest
ed az productive capital, or, in other words,
unless the business needs Of the country
actually required it for it, profitable and
successful prosecution. In that ease, and
for that purpose, Il il difficult 10 saY why
the currency should not be extended % Az u
meet the necessities OF the people when
duly restrained by the rate of interest raid
and the kind OF security required for the
issue OF Government money The rate III
interest would act as a certain "regulator''
or governor Of the amount Of the circulating
medium.
As currency it would be secured to the
holder BY the pledge Of all the taxes, ems
toms, wealth, resources, anl power Or the
country. As capital Lo1Aed it would be se
cured TO the Government 5y its own bonds,
at ten per cent. below the par value and
3o-lOO per cent. interest On the difference
How could il differ in value, except being
better, from the bills ot the national banks?
ulft 20 Vail
customs duties are pledged for it, redemp-
ton IN a. iition ty the Internal taxes. Ii
would have-what the bank currency has
not-eldSticity. Whenever X were wanted
and the rate Of interest rose, 1t w0uld be
taken from the Treasury and the interest
would accrue to the Government; whenever
il was not profitable to the holder, tie rate
of interest falling u 65 100 Der cent in
gold, be would return his money and receive
bis bond. and the Government would have
lost nothing by the transaction, but gained
the intervening interest.
Assuming chat over and above the $780,
OOO, ,OOO which IL u provided the Govern
siiss.s Iaali lssse 10 ~ crn FGs65sT, tis4t
an svesage u t500, ,00o, 900 should be found
necessary TO be used as money, than the
Government would save $18, ,250, 900 In gold
interest upon that sum, or, 10 other words,
pe paying but $4,000 per cent. on $780,,
OOO,OOO Of its six per cent. indebtmert
that, added to the $lS,000,000 now paid 10
me banks az interest on the bonds they have
deposited for their circulation, say $780,
OOU,OUO, and SIX per cent. on the 100000,
O00 now lying idle in the Treasury. the saw
ing would De $42, 100000 in colo, instead
7 the loss BY the present manner 10 which
GoVernment issues iEs money ID the banks. .
II II Dc assumed that the Government. un-
der The proposed system, would have to paY
a margin between its certificates and gold, .
20 pay interest On its gold-bearing bonds,
there surely, in this saving would be found
means to make up the difference.
Ii it be said that tais currency will huc- .
tuate, it il answere4, its only element Of
huctuatiOn in value il the fact that il Iaay
be increased or decreased by act Of leg sla- \
ton. But VIC Gil know how difficult it il %
get acts Of legislation passed to alter the
currency even when the country is suffering
very grave evils,
Ii is not 20 be assumed that the represent
atives Of the people in both Houses OF Con .
gress will unite with the executive -antonly .
and causelessly in legislation that shall .
uDsettle the value and currency OF the coun-
try.
an. quite willing to compare the huctu-
ations from legislation, or the stability of
this currency with the stability Of q curren-
cy actually and exactly convertible into
gold, under the best circumstances in which
such currency has ever been administered,
for highly commercial and manufactur- I
ing sople. | trust no one will complain if
| compare this currency with the notes Of
the BanS OF England.
BY the act Of lc44, known az Sir Robert
p Ia act, the Bank OF England was put up
on an exact specie basis, L. e, no more
notes could be issued than she had gold 10
her vaults 70 pay, in addition to those
notes which experience had shown in no
case Of panic hal or would come in for re-
demption; for beyond that amount the
bank was not allowed to issue a single note
without corresponding amount Of gold ia
the vaults Of her issue department, and
that amount Of gold was to be kept there by
altering her rate OF discount, which it was
claimed would, as IL was raised or lowered
contract or expand the business Of the king
dom.
In thirteen years and FIVE months follow
ing that act, from September Z, lS44, to
February 4, 1858, the bank altered the rate
of discount ffty-six times, during which
time she quintupled her rate Of interest,
raising it from two to ten per cent. on the
best sixty day commercial bills. Between
April, 1857, and January 1858, eleven
changes in the bank rate OF interest occur
red; and in the year 1858 her rate Of inter-
est whitfield, like the weathercock, nee times
IN .fUe cecks. In addition she suspended
specie payment twice, to wit, October %,
l84T, and November Q, 1857, and issued in
convertible bank paper, by order Of the
Government, TO save all the merchants and
banks Of the kingdom from financial rum,
after many Of them bad failed and in No
vember, 1856, she refused all discounts at
any price, even upon Government securi-
tie6.
sf All hereafter trace few OF the more
Imnnrlnnk hnctnat1ana az tha narrnnnu ~