The New York herald., 1869-01-13
HERALD WEDNESDAY l8e9-TRPLE SHEET

assume that the change VIII at once bring this
money OF the United states nearer To gold-Wi very
| considerably diminish, II not entirely prevent thS
| operations Of the Gold Room and the nefarous pur-
take place as commodities to be exchanaed abroad
according TO their value In weight as merchandise.
Indeed, . moments reaection win convince any man
that this has ALWAYS been the when gold used
| IN KIND for the payment Of foreign debls.
| One principal argument In favor OF q currency
based on specie has been that currency ought to
be Of the same value as the currency OF the world
as the phrase iS-fn order that we may be able to
pay our iGresn debts s n our own coin But IN fact
stamped upon It or for payment OF foreign debts. 1t
always reduced to the value OF so many or
gold OF q certain fneness and exported as bullion,
| convenient and safe form Of merchandise against
which bills Of exchange may be drawn, and that
tries. As an example, take japan sSe where soI the
standard OF value Is silver. In 1857 our Consul at
Simods, Mr. Townsend Harris informs US that gold
| with rs 1t holds BY law az q part OF our specie
standard the rate OF about fteen and half to one
purchase an ounce Of gold, while in America It took
| fifteen and half ounces OF silver to purchase an
ounce Of gold. How, then, can it be said that gold
II the standard OF value OF the world when In one
country which absorbs large amounts OF our specie
IL stood deprecated In comparison with silver at
standard Of value in eiIier OF the great commercial
countries save England. The experiment of issu-
ing money based on taxes alone as its redemable
value mas been tried TO small extent at an early
day in this country. Soon after the Revolution North
Carolina, having no money for the convenience OF
In State notes. receivable in payment OF taxes. or
course she could not make them legal tender. AL
though her annual taxes were only about TWO hun
dred thousand dollars, these notes at once took
their place 1T par value and became, in practice,
convertible into gold, although no man could de
were gradually worn out or absorbed no new issue
being authorized, and the bills OF the State banks
TIE osRTIFIcArEs TO TAKE The PLACE OF GOLD.
assume that these Certificates OF value, as a
circulating l,l medium win at once take their place az
the payment OF taxes every year. do not mean to
say that each individual piece OF paper would be
to them a. compared with the present creenback.
and that Is, the government would have to procure
gold TO meet It's interest and pay the difference be-
tween the gold and the certificate. But let here
reflect moment that the gold now paid for customs
duty is obtained by the merchant borrowing 1t upon
mium and Is very clear that the difference between
the proposed certificate OF value or greenback
and gold would IN the future be much less. have
also endeayored TO md compensation for this ap-
parent loss To the government as will hereafter be
seen Il may further be objected that making these
may De M peiow tne par OF gold would to that extent
reduce the percentage Of the tarr. This II an evil
" would soon cure n itself Any considerable increase
tue duties would enhance the price OF that cur
rency, and therefore bring it quite up to gold. Be-
day, II II were supposed there would be any appre-
cable difference between the value OF the certificate
until that time, when the sudden tnnur NJ no% Womb
materially enhance the value OF the currency to nav
aatona Sants al ~ .s y to take from shs
as money. leaving them as they are now, banks OF
deposlt,.lcan and discounts, but not Of issne-of
Is evident that the thr hundred es and y million
dollars OF certificates OF valuen above proposed
amount OF currency for the business purposes OF the
country; therefore, propose to throw open the
pnssn'nc privilege which the banks have Of
every man or association OF men VINO can
furnish precisely the same security that the
banks now do for the money so received from the
government Or. in other words that every owner
or government bond paying six per cent interest
n,fa " com s,a msy go & 70 any public depository In the
receive certificates of value-that is greenbacks-
to the amount OF ninety per cent Of the par thereof
any time after thirty days. he paying to the Trea-
sury Tor the money he receives at the rate Of
three and slxty-nve one hundredths per cent
interest per annum in coin thereon until he returns
a like amount Of certificates to the Treasury, when
he shall receive back his bond Assuming
outstanding and every one should be pre-
sented to the Treasury and currency demanded,
tserea MSga gss nssbe ouns 1elas ninety per cent
sued. The nrst objection striking the mind Is that
this amount would make the currency by far too re-
dundant Would or could the business OF the cOurl-
try need so much II safely be admitted that so
much currency would not be needed and In practice
ton OF these bonds are held abroad and would not
return until more valuable here than there. Another
large portion held ior purposes OF investment would
not be tempted TO be taken therefrom with
out very large difference between tine rate
q commercial interest and the rate at which
IL was obtained from the government; the
controlling limitation In practice on the issue
OF this currency would be the rate OF interest paid
the government for It. The owners Of this species
OF capital will never pledge IL to the government or
anybody else for money At three and sixty-nve one
nundredhs per cent on ninety per cent Of its value
vested AZ productive capital, or, in other words
unless !le business needs OF the country actually
regnlred lot .n.. us & profitable ana successful prose-
diflicult to say why the currency should not he
extended so as to meet the necessities OF the people
when dty restrained by the rate Of interest paid
and the kind OF security required for the issue OF
goverunent money. The rate OF interest wound act
as certain "regulator" or governor OF the amount
THE BENEFITS THAT WOULD ACCRUE PEoM RI.
As acu.rency IL Touh be secured to the holder
by the pledge OF all the taxes, customs, wealth.
sources and power Of the country. Az capital
ioancdt would be secured to the government by its
and 6Gy-hve one hundredths per cent interest on the
dermce. How could 1t differ IN value, except being
better from the bills OF the national banksf 1t has
greatfr ultimate security, because oil customs duties
are pedged for It's redemption In addition to the
internal taxes IL would have-what the bank cur
renci has not-elasticity. Whenever t>were wanted
aud me rate OF interest rose II would be taken from
the Treasury and the interest would accrue to
the government; whenever II was not profitable for
use 10 the holder, the rate Of interest falling to
thre and sixtynve onehundredths pet cent In gold,
he would retnrn his money and receive
los nothing by the transaction, but gained the
intervening interest. Assuming that over and
ahsve the three hundred and fifty million dol
Las which II ID provided the governments shall issue
f It's own purposes that average OF i've hundred
million dollars should bc found necessary used
n money, then the government would save eighteen
million two hundred and my thousand dollars in
pod interest upon that sum, or In other words, be
Jaying but two and NIFTY -hye one hundredths per
lent on Ave hundred million dollars Of It's SIX
per cent Indictment; shat, added to the
bgnteen million dollars now paid 70 the
banks a. interest the bonds they have deposited
for their circulation, say three hundred million dol
lars, ana SIX per cent on the one hundred million
dollars now lying idle In the Treasury, the saving
would be forty-tw0 million dollars In coin, instead
OF the loss BY the present manner in which govern
ment issues ITS money 70 the banks. II IL be assumed
that, the government under the proposed system
would have 20 pay margin between It's certificates
and gold to pay Interest on fts gold bearing bonds
there surely IN this saving would be found means ~
make mp the difrerence. II II be said that this cur
rency win nuctuate IA answered It's only element Of
nuctuation IN value Is the fact that IL may be In
creasd or decreased by act Of legislation But we A
know how diffcult IL II TO get acts of lcgslattou