, 1869-11-22
TIE EAMIEHPsTn FAILACY.

LIE CHtcag0 ItmfS 1eFifes one of tre
most specious Of the financial fallsc;es re1a-
tiye to our currency. It claims tha: the re-
tsrement Of the greenbacks aad substitution
Of tho National Bank notes will 'ttlriro
'slrora circulation between tAreo md foar
"hun1scl millions ol dollars Of currency,
furnished by the government, and Which
does not cost tho people penny for H.
tcrcst, and replace it BY ike amount.
for ulicl, the people will havo to pay
eighteen or twenty millions of dollars
HScaIly in interest" !. II the Iiim<s will
inform Us where We, or any portion OF "the
people," eau borrow ten thousand dollars
III g-etnbacss without paying penny for
Interest, it will confer upon Us
favor. So. far as our information
extends, the people who want to use or get
the grecnbaclss to-day pay the same rate Of
interest for them that they would for the
bank notes, and would continue to do so if
our whole currency were in greenbacks,
.. Du. it is said tho government saves
the interest on the grecabacks, compared
with whut it world lavs to par on like
s,.m invested in bonds. Hafoss estimating
tliv a1nuunt snved, calculste ho* much the
government loses ly collecting $ 40, ,ooo, 600
Of iIscrull revenue taxcs per
yea. in n currency which is at discount Of
twerty cents per dollar, and Ivy the in
crc:sed salaries for witch the deprecated
currency forms the apology aud excuse.
These losacs will be found to quite offset
The nnnual interest Oh the volume Of green
| backs aaoat.
q. The Inevitable consequence OF using
| as currency government promise, not
! 1e,!ct1nas'le on demand. nud whose redemp-
tiou in gold is wholly unsecured by sllablc
co!laterals," like the noles Of banks. is,
that tho currency will be leprc-
| ci1tc1. If We Ere ever TO
culno to and sustain a currency at par with
Spec;e, aLd which shall not be swarm Of
lies worse than the swarms Of lice which
ovc1ran Es.rt, wa mus. mako it cousis: Of
notes wLose redemption in coin, at par, is
1tandantIy secured by saluble bonds dopos-
tied i'll pledge with tile Comptroller. Ii The
! 7.;,.ts lt.uvs any other way Of Keeping u
paper currency at par let it propose it
Thus iar in tho worlds financial his
tory none other Inns ever existed.
An exclusive greenbacl currency means
pczpc:ual!y irrclee1uabie and deprecated
currency. tho lo-ses to the government
aud people by s1.ch n currency, as We have
shown. are greater than the nero interest
un its sum.
I. The bonds which will be pledged hi
banks rs tho basis Of banking, AMI OF
which the government will pay iut.Ees. te
the banks, tire already issued, md the GOV
ernment Will pay interest OF
them in any event. lnstest
Of increasing the amount o
interest required to be paid BY the cavern
ment, tho competition botweea tie bank
fvr tho purchase Of the bords will caus
Them to The tie first to of1or to take tn
hnnds Of the government at lower rates o
int.rest. Through them, rather thai
abroad, VIC may expect to accomplish tn
great work Of refunding tie debt at q lowe
rate OF interest.
s. Only By al extension Of the Nations
Banking system SO ~ to mike it one o
FREQ a,auting and sIecie redemption ca
the country te snrrllcd with TIM. which
n,ls. ne4 ds, ai:cr 1td8col taxation to reyiv
its siLking industries, "a sound, well-ss
.. cured, abundant currency at par with th