The New York herald., 1869-12-04
TREASURY PgLigY-A M.sTAKE.
To TIE EDiroR OF TIE HERALp:--

TO THE EDiroH OF TIE HERALD:-
We have said that we wish to increase the prco OF
the farm produce OF tne West thai the farmers
can sell IN cur markets at a remuneraXing profit
and we have shown that this cannot DO efected
unLit we increase the premium on exchange and
god. and this last depends upon preventing the
sale OF bonds or export. Specie par or the par oil
exchange VIII place all exportaole arm produce
low in price ut the West that cannot DO moved to
market. ms Is stagnanon ana ruin 70 Western In.
terests
Your correspondent from Columbia county Says
"Tho farmers ,hink that when merchants have to
pay fifteen per cent for money, anu farmers caunot
realize than eighty cents per busnei for wheat,
there must be deficiency Of currency to represent
the value Of our vast products, which currency the
leopls should supply direct through their govern.
ment.u
This position is tenable, and accords with the
great law OF supply and demand. In TINS State, we
have said, Is Law taat seven per cent per annum la
fair price for the use OF money. Tne Only rule by
which TO determine the proper volume OF money is
the rate OF interest that 1t w bring open market.
Tae ngn .ate OF fifteen per cent shows very limited
supply. lnueed 1t is limited, inaL the price ior
the use money takes OH all tie lar proAis OF
irJde--and the price Of wheat aud -four III our
ma~et - luther proof 81 s grea scarcely ioT all
legitimate nusuess-aud this ~ all produced by tho
great mistake we have maze IN supposing tnas we
had deprecated and Redundant currency. Bas
dueed, IL must De conceded thar the price OF god ls
e3ntgoNed py the loreiSn demand, aud not bv the
domestic oeIuand that gold IS cons antiy drained
nom by Shipment anu that our currency remains
IN The country and does not change IN volume.
II th.5 question may % c0n5iIefel settled then
we WA present To oar farmers. mechanics and nler
cnaIis u patriotic aAI at.lfesnaL- kc plan 10 lund
our pubic deDt, at ioW rae o interest," kesp lin
the country ana embrace " Iu the business currents
made Ia sucu manner tnat It's convertible and
use.ul Character VIII CAKE away any senDlanco or
burdcn upon the country. We propose, tneD, that !
Dou1 sla De issued bearing ali interest OF 5.c5 per
aunua or one cenC per day on slUO III sums or S5)
10 / 90 each. These bonds may DO made payaOlo
~ goa az te expiration OF forty years; AMI we FUR
tnet propose that the principal oi these bonus shall
De n'1tc d legal tender. Thus you viii maze all
your bond deDL money bearing an interest or 3.65
per cent. You VIII tins haye one pofi0n OF yoir
debt - small denominations or greenoacks baaring
10 interest, aud another and larger denOmlnatlon
bearing an interest OF 40. One would DO
usal the daily retail tratllc aud would run IN
aad out Of the banks, whlie me larger ones,
bearing interest wouid be Used ior feaitt-
tauce and larger transactions ana would not 30
INTO banks, bat would go IN and out OF tho private
sattS otler deposit0res OF merchants farmers.
mecilanics ana capitalists generally. All practical
Dnslness meA VIII see that tnis plan would add
greatly 10 the ease, independence ana iaciutes VI
Dtsiless mon. These bonds would be sought Tor by
all WAC do business on capital. They wouid lie IN
the safe, earnag interest, until required Tor use aud
taen tley VIII come 10 the aid OF business nieu as
money 1is would render traders OF all kinds less
| depen dent uyon the tenler mercy OF banks and
| MAKE all sound merchants their own bankers. This
rdte OF interest Wi hoat our bond debt anl lodge
II IA tAe Keeping OF active business plea ihis pan
OF placing our debt IN the hands OF our own people
ano making II beneficial 70 commerce VIII meet win
opposition rolu maay quarters, Dut II the business
1unJty and inc farmers ana lab0rers Will resolve
u adOpt tins pian IL will put new He into al sec
tons OF our country, ana toil VIII be REWARDED tne
! price OF labor need not be reduced, and the hien
lfIee OF money and the recurrence OF panic5 Ia our
| markets, rom sacb cause, VIII not occur. Tue
/ advantages OF TINS plan VIII be elaborated ana al
OBJECTIONS VIII be considered and answered III these
! letters.
! ias cry Of imitation, contraction and specie pay.
meAGs. and the attempt OF the Treasury 10 oppose
the currents o trade, by trying TO put UP the prce
OF tue very bonds no is Duying--and trying, and
| actually putting down the price OF the gold ho -
seipg 50 the pront OF tue ltaporter aud the great
/ and overwhelming injury 70 tno farmer and otner
producers ~ the real of all tho depression now
| lett Ia every section of our country.
| IL tue Secretary should do what every sane
merchant and trader has always done cry down tho
bonds he Is puying aud up the gold he Is sena,
ali would be well; Tor IN that ca5e he wouii en-
courage the export OF farm produce and discourage
excessive lmp0rts.
| We 40 NOT charge the secretary with intending TO
roln the Western larwer to benefit the importer DO.
cause We Beiieve IL IL oly mistake Oh his part,
auI arowa out oi his suppo Iton that our currency
has come dcprccatcd--a most seiious and, wo
tear, u la al msstaAe ior our " Western farmers.
JONATHAN 0LDBUCK.