The New York herald., 1869-02-12

oOldlueu tL u low Idtt Di Interest. AS long ds
United states government Is the leading fayonte
for loans in all markets at the highest rates OF
Interest, states and corporations, companies
and pay the same or more extravagant rates. The
loan proposed is what Is called the i've per cent ten
forty loan. Tins leaves the c0ntrollability OF the
loan IN the hands OF the United States after ten
years, ana Dy that time we may reasonably hope 10
obtain even better terms than loan at hve per cent
mean al present 10 keep any part Of public debt
at home It " useless TO attempt 1t at lower rate
Is d tSat % asp an 70 sena nn re pe
cent on her debt and that Is nominay true, but she
pays tnat on fl00 when only two-thrds OF that
par, and has not for generations past. When the
debt was first negotiated 1t done at much more
capital In Europe Is loaned At less price than IN
America, but they viii not loan 1t here for anything
less less tnan the market price here They can obtain
sufficiently great. They own too much OF our rail
road and other stocks already. The reasons for
anowlng the present Indebtedness TO be funded at
ower rate or interest than we are now paying are
LOO coSent 70 require further amplncation.
BY the amenamens Of my friend, the senator
the srecprocatlng motlonn Of finance, az well as In
machinery, 1t VIII be seen that 1t 10 once more
seriously proposed that United States notes shall be
redeemed with ponds, and bonds redeemed with
Unlted states notes; and the chairman Of the Com
ml.tee On finance, with paternal fondness for OBJ
Scts Wnicn Ole young, and we are told are loved by
the gods, patronzes the amendment with the assur
ance that notes and bonds are to be convertible
There Is an alchemy about this that only pure
sclence can comprehend, and quite surpaSses the
snarp idea OF Two Yankees who got rich BY swap
ping the same Jack-knives all one night.
have yet to hear any valid objection to the section
Of the bl reported in favor Of allowing contracts
be made ON the basis OF specie. The fact that the
higher law OF International commerce forces them to
be 80 made now, argument enough to sanction the
measure Tne fact that whole states conduct their
business at present on this basis should reconcile us
TO its further extension. Seeking to restore the
standard OF specie everywhere. Is 1t not curious
llegality everywnereY In other words, we solemnly
declare that paper shall be used by everybody until
eyesrybody - has got specie, Or that all must keep
10 swim II we would be translated from the
regions OF paper money TO COIN without
detriment to the debtor class Of the community,
then contracts on specie oasis should be made
innocent and lawful, not crimes. The section pro-
posing permanent appropriation OF $4,000 for the
payment OF the interest on the public debt and the
excess In lieu OF the sinking fund, for the gradual
reduction Of the principal. Is timely and viii be OF
and cancel United States notes appears eminently
proper. IL is, undoubtedly, the cheapest mode OF
getng these notes redeemed aud out OF the road to
an ultimate resumption OF specie payments. they
are the great obstacle which blocks up the way and
10 redeem them with our own bonds at not less
much more economical method to pursue than 1t
would be to sell our bonds abroad at q heavy dis
count IN order to raise che means in coin for the
same purpose. It Is obviously lmpracticable TO
raise the means OF retiring the United States notes
GU outstanding BY present or immediate taxation.
to rely upon that Is equivalent to an INDEFINITE post
ponement OF the whole question. II the rate OF In
terest proposed Is low enough then to fund these
notes In hvo per cent bonds the simplest and the
cheapest mode by which they can ever be retired.
There has been an amendment proposed reaching
70 Inns section, by the Senator from oregon (Mr.
wiiams), limiting the amount Of the United States
notes wnlcn snall DC converted TO the sum OF two
m,lon sconsa dollars per month This amendment s OBJ.
within which conversions shall be confined and also
objectionable from it's non-eastic and fixed rate,
copdition OF the money market happens to be favor
able or uniavorable TO such conversions. Now
sir, all who are obscryant q tue periodical ebb
and now OF money In the great commercial
Inarts OF our country know that in some months OF
the year the whole sum allowed by the amendment
to De converted IN an entire year might he retired
with more facility, and would produce less strin-
gency than the conversion and retirement OF one.
twelfth part OF the sum In some other months OF the
year. II this amendment Ia intended to eject the pur-
pose OF converting twenty-four million dollars OF
notes annually and no more, 1t VIII fail OF Its object
as there sure to occur In about half the months OF
the year such demand for currency that no surplus
VIII ut such periods be available for the purpose OF
conversion. So that, If this amendment were to be
adopted. r would practically limit the amount OF
the notes which could be converted to q sum proba-
bly, not greater than one-han OF the aggregate sum
my approval, because 1t will prevent monopoly OF
banking which Is an evl TO ne guarded against for
price OF money dear as for the growers OF cotton or
the manufacturers Of iron to seek an enhancement
OF prices BY reduction OF monopoly Of the quantity
cause It Will be sure 10 furnish full and adequate
means to transact the business of the country what
cause so long as t is safer and anything more can
be gained by 1t than in other branches or business
Il wilI invite an accession @ the numbU(s and
viii be safe. for the entire issues OF the banks viii
have the most Substantial security against any
eventual loss Even In case or failure OF any
bank Its circulating notes WIN not depreciate,
as only brief time could elapse before they would
be redeemed through the sale Of their securities
lnf nd boy ynnld attts
circulate nearly the same as before. rhe premium
on gold Is not necessary TO remunerative dividends
rate OF interest bar 10 such dividends as Ii proven
by the much larger dividends now made by the joint
stock banks o. Of Great Britain; But am IN favor OF
culating medium can be furnished, everywhere
equivalent to specie. With such circulation am
sarIly % be done, to displace what is called cali % the
'greenback" currency-a currency which no State
ever issued or can issue without the strongest
temptations to abuse. Therefore shall propose
at the proper time to add TO tins section OF the
bill the proposition tQ retire for Oil notes issued
equal amount OF United States notes. Surely
such an exchange cannot be fairly objected to- Not
believing that experience Is cheat and fact a
ar,r shall not argue with those WHO seem TO con-
tend that "a whistle can be made out OF pigs
tal,r or that irredeemable paper money Is better
than coin. No report OF any veocpeda traveller to
the moon VIII be likely to convince the word Of the
uselesslcss OF gold and silver money. IL may be
said that the scheme Ia impracticable and will not
viii have been done. But those who so argue
forget that the present amount OF national
banking currency Is very properly limited 10
three hundred million dollars, and that In
many portions OF tue country national banks,
though urgently required, cannot be authorized
on accounG OF this Limitation. In such places they
woud be eager TO encounter some difficulties IN
order to obtain banking privileges. The encourage
ment 20 believe that ere lonY all banks might be-
come specie-payng banks would be y further
ducement to organize under this system. ON the
Pacific coast, wnere they have not lntermitted the
use OF gold coins for day, and where II Is esti-
mated that iorty million dollars n not more are
now In circulation, It cannot be doubted that Incy
would be ablc n so minded, to establish banks
whereby seventJ-aye million dollars OF paper at
least could be issued, redeemed and sustained at
the par OF gold. la the south much greater
banking facilities are required, and there, with
their great staple cotton, selling for twice
its ancient price and az that price CON-
manding gold. there are no hindrances
which may not easily be overcome In the establish
ment Of banks which will redeem their circulation
In coin. several OF the existing banks strong
enough In specie to adopt this system once ad
vantagesusy aud without fear. The presumption
Ia "a M ar al lens hanks