New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-02-02
FINANCIAL PROJECTS.
SUGGESTIONS BY THE PEOPLE.
A "FREE GOLDn BANKING ACT.
10 the Editor Of Tie Tribune

OF the abnormal financial cOnuluoh Oi tbo haO"' VIII
you permit one who Spectator to suggest through
Vopr cslurons papacea for the disorderi Here 1t
Let Congress pass ee gold banking act, comprising
the following provisions:
l. That the banks organized under 1t in State shall
redeem notes presented IN 0oid at the capital OF
such State.
4 That the amount Of notes Issued such banks by
tho Controller shall DO equal TO the gold value IN the
market Of the bonds deposited with him security for
the tssue Thus gold being now at iS5, new bank or
ranized Immediately would receive hundred dollars
in notes each hundred and trty-hve dollars OF
bonds Deposited as security
g. As tho value Of the bonds deposited as security rises
IN the money market let the Controller issue additional
notes 20 the banks un the amount In notes equals the
par value OF the security.
Make the notes Of such gold banks legal tender for
ererV purpose customs as well as internal revenue
Authorize the Controller to destroy as many green
backs as he Issues such gold value bank notes
c. Amend tho present National Banking Law so as to
compel The present National Banks 20 reorganize under
the new law within period Of ten years
simultaneously with the passage Of such free gold
banking act let Congress pass act egizng contracts
in gold so as to furnish demand for gold or equivalent
gold value bank notes, as currency for mercantile
transactions
The effect of these acts would It is believed be as fol-
lows
1. The country would be supplied with just as much
really good currency, equivalent in value to gold as II
wou0 be expedent to have and MORE because the re-
quirement OF redemption in gold would prevent an ex
cessive issue.
Q The present greenbacks would be gradually with
drawn aud without lesseung the actual value OF the
amount Of currency circulation. Anrredeemabe cur
rency would thus be replaced by one founded upon and
Of equal value with gold, and that, too without the
shock Of contraction In other words, We should grad
ualy return TO specie payments .
g. An increased demand would be created for National
bonds for banking purposes. and as natural conse
fbe cir rEet vail
A. As the greenbacks became scarcer, their effective
yaue would 90 increased because they would be wanted
for the noxt ten years By the present National Banks TO
redeem their notes. and would be wanted as long as they
could DO obtained for tic purpose OF paying internal rev.
enue. ..
s. The Increase in tho market value Of tho National
bonds and the increase In the effective value OF green
backs would progressively the actual value Of the
notes Of the present National Banks twldch are based
upon bonds aud CreenbacRs) and in all probability the
value Of these would rise TO that Of gold before the
proposed period Of ton years should expire.
As the privilege of banking would he free TO all,
there could be no favorsm shown in the distribution OF
that privilege. aud no complaint Gas there is now that
the privilege not extended to those who want and
arc ready TO comply with the requirements OF the law
But 1t may he asked where IS the Government to obtain
the gold required the interest OF the present debth
It IL to receive the gold bank notes payment
Of customsi This question finds ready reply IN the CON
before ne war mis- state Rad nee banking law re-
suning the notes Issued by the banks to e redeemed in
tIce afy person Who wanted gold could readily procure
itby scnug the notes &C me plare ~ redemption Inc
oToSed free soa G9npg act We're passed ana although
would be put into circulation thn II wond be
sound hnancA PoAey 10 Issue; oTC pea g b tne
ing the security for the notes sold by tie
controller, wond prevent ne Issue ,if OF more
constant circulation Besides, much less quantity OF
gold would be required by the Government after tho
Dsss Va banking
large amOuut o. tho interest bonds paid by the
The gold interest now rsd these merely rovolyss
throb four bands w; inc TeGeyer or interest who
(yho buys It 10 pay clstoIns), and the Government
yd R Tt5 o lust as we'll be replaced by bank
notes having The value Of and redeenhDe ~ gold ana
# the option given IN each receiver OF interest 10
take the amount o. ms l interest Sdto. IN goa
can DO no doubt that the greater convenience OF the
notes would them 70 be preferred ~ the great ma
jorty Of persons the frst doubt their
value due TO thtir novelty removed 10y the redemp
Of the notes gold fast as they we're presented
TieS Is one other provision that it would DO highly
desirable 70 incorporate ia the proposed Ranking act
VIZ to give tic Banks te privilege now enjoyed in the
State OF Massachusetts, Of contracting 70 pay or reserve
recent OF any rate o. interest; lrovldSu hat II no con
tract IN writing TO pay certain rate Of Interest De made
~ sfim5ists fbe ORGANIZATION OF banks Under the new act
IN those districts 81 the country where money Is most in
demand, that Is IN the West and South; because the
capitalists OF the East would prefer to put their money
into banking business IN which lsrg rate II interest
could he legally obtained. rather than loud 10 TO
brokers IN the Fast ior speculation in stocks A1mpetus
would thus be gwen to the organization OF gold paying
banks under the act, and particularly III the West
and Sou where banks are now most wanted; moreover
the certainty OF Obtaining greater rate Of interest than
seven per cent, would stimulate the present National
Banks 10 reOrganzc nder The new act and thus hasten
the constitution OF gold value bank notes in place OF the
present National sIInplasters.
AS respects tie present fiyeTgenty bonds, If Con
Rress would but ABOUT the sugg sOns that have been
made Of appgOpatu portion OF the customs revenue
70 their redemption, these bonds would speedily rise 70
par In gold Suppose fur example that Congress should
pass act requiring al the custom receipts tor some one
article now yielding eight or ten millions OF dollars per
year, to be applied TO that purpose and that the bonds
should be called in the order Of their Issue; tho very
fact OF the commencement OF red on Would not only
raise the value OF the bonds, but would Improve tbs
credit of our Government that y would be easy 70 reduce
the rate OF interest upon the DEBT IL 10 well known
fact that tue l"iaeg ,, OF lDond a; an an IN
liOd IL has to run, bond that cannot be paid OF
in less than twenty years beng moro valuable
an investment than one redeenabe Ia i've years and
more desirable H. therefore, Congress should authorize
the issue OF I've cent bonds extending nor less than
80 years ana should sell teH I0 What tteY VIII Dllhg IN
the market, there can be doubt that tie Government
could procure gI9 SnSHn 20 EeGoe tne M
And H. in addition the annual issue Of such new 40 10 90
year bonds were at lst restricted 10 smaller amount
than investors IN such securities would De glad TO get
say to S12OO0OO0 or 50o0C0, per MONTH such bonds
in view OF the fact thar those holders Of Five Tweutcs.
whose bonds paid out OF the proceeds OF the
bonds, would De saa TO nYes tner 9d 10 sncl desla,
Die securities rs i've per cent 4cear bonds Tie actual
OF gold required for such process OF conversion
0SS SS very m PSSD5eb 3 lan 80 S yuG Of q
god paid Tor the EyeTwentes, roiuyested the
lnen the present bond holder and TIC broker In order
10 AVOID any doubt 70 tho iuten ~ tho Government 10
should be stated on their faces OLD FoGY.
FOR THE DEBTOR CLAss-DoUBTFUL MORALITY
IN TIE NAME OF JUSTICE.
70 the Editor Of Ihs Tribune.
SIR: Among several plans for resumption of