New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-28
GEN. BUTLERS "SIMILITUDES'

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predict whether any of his suggestions Will
become part of the financial policy OF the coun-
try. We regard his speech as far more aDle
than his plan. lie plans badly but the worse
his plan the finer the opportunity Tor display
ing his powers of speaking well for bad cll-
ent. He proposes that the present GreenDacks
and National Bank notes be Withdrawn, ana
Treasury certificates of value" or pictures
having a "similitude to money not redeema-
bic in gold but only receivable for taxes and
customs, and made legal tender III payment OF
all private debts, be issued in their place, to
the amount in disbursements by the Govern
ment, of $4,000 ,000 and to the further amount
on the application of bOndhoders, of 30 per cent
of all the six per cent bonds outstanding, provided
the holders of those bonds shall deposit them with
the Government as security, and pay 65-1OO
per cent per annum tor their use. Fractional
coins are also to be issued of the intrinsic value
of so per cent of the nominal amount OF the
present fractional currency, now worth in specie
Is per cent. of its face. The proposition closes
the National Banks as banks of issue, and
converts the Treasury into one vast National
Bank of issue, authorized theoretically to loan
the bondhoders, on the security of 81, 75OOOO,OOO
amounting to s1,575 100000, which, with the
$3.50, 900 900 of currency to be issued in redemp-
ton of the greenbacks and for Government
expenses, amounts to grand total of Sl,9'5,-
100000 Of currency thus legally authorized.
The question how much of this will ever
be issued depends by the terms OF the
bill, not on the will Of the Government, or OF
the Secretary of the Treasury, but on the in
terests of the bondholders alone. The primer
pal bondholders are at present the National
Banks, Savings Banks, Insurance and Trust
Companies, and foreign and American capital
lists desiring them rs a means of investment.
II is important to bear in mind that very few
of the bonds are held by the commercial and
business classes Mr.. Butler argues that this
currency will be uniform, sound, cheap, stable,
and elastic He cannot mean, by uniform,
that we will not still be compelled by good
faith, law, and express contract, to pro-
vide coin with which to pay the inter
est on our five per cent. and six per cent,
bonds. TO this extent, we must still have one
currency for the Government and its creditors
and another and deprecated one for the people.
In order to provide coin for paying the interest
on the bonds, If our customs as well as internal
taxes are payable in these smilltudcs the
Government must sell them or its bonds in
the market 10 get the gold. Either the Gov
eminent must repudiate the interest (as well
as prncipaD of the debt, and its express
promise and written law Gas well as its good
faith, or it must IN some way receive and pay
ont about Sl3O,OOO,OOO in gold per annum. To
this extent, our currencies would be more uni
form than before. That the Government could
buy half million of dollars in gold day
with paper smitudes,n which can be issued
10 any required extent, and continue To do
this from year to year until the country would
have "grown up to- specie payments, more
smoothly. chcaply, and efficiently, than 1t could
collect that sum for duties, Gen. Butler may
fully believe. We do not. lie explains to us
with great clearness that the value OF our
present currency depends upon, and is conferred
! by, that Of the bonds, insOmuch that when the
recent German war caused Prussians to sell
| our bonds largely, in order to invest IN the
new loans their own Government was putting
on the market, and in consequence our bonds
| declined for a reason wholly disconnected
with our own credit or business, oil
the efforts of Secretary McCulloch by
selling gold TO prevent our greenbacks from
declining also as shown by the continued rise
in gold, were unavailing. Greenbacks fell to
the level of our bonds. Gen. Butler was on
| good scent here, and he should have followed
it further. Having shown that the value OF
our present currency depends on that of the
bonds, he should have told US what the value
| of the bonds depends upon. He could not nave
| avoided the conclusion that the value OF the
bonds depends upon the adequacy of the pro-
vision made by us for paying their coin inter
est. Capitalists judge of the value OF any in
vestment by the adequacy and certainty of the
interest. If that is kept right, they can
get tho principal at any time by selling
| the bond. German, English, and American
capitalists will pay only IS per cent. of its face
for an American bond, because under our
system of government there is about one
chance in four that all provision for meet
| ing the interest will be repealed. Our bonds
sell at 70 at Frankfort, because we can show
| our German friends that we have gold rove
nue. of $1G0 100000, all pledged to the payment
| of a coin interest of only $1300O0,000. If on
this argument alone he consents to pay Is
cents per dollar for our bonds, and if this
causes our greenbacks to be worth ~, what
would either bonds or greenbacks be worth if,
| as proposed by OcH DullciJ All ploNlSlOu lOl u
| gold revenue were repealed and the Govern
ment could get no gold whatever, except by
| buying it in tho marketP What would be
| the nature and extent of the "corners"
and the god-gambling which would result If
the brokers of Wall-st. knew that the Govern
ment must buy gold at the rate of half a mil
lion day in open market, or repudate its in
crest at the end of six monthsi Whether it