The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1869-04-08
Another Boston I" "Specie Resumption -
Humbug Exploded. zsy ~

Olic AMASA- w ALi&ER, Boston ITO
fessor, is out again in a letter to our
fOhio Congressman, late Reverend,
noW promoted TO General GARFIELD
4 with a newly discovered specific for
specie resumption that is to cure all
financial ills without pain or other I'M
pleasant consequences. As the % Pro-
fessor" hasn taken out patent for
his discovery we lay it before our
readers.
In Justice to our cotemporary, we
should here say the project meets the
fullest appreciation of the financial ed
\ itor of the Ohio State Journal. But
to the specific: @
I FifstAThat Congress authorizes the
issue of compound interest notes, pre-
cisely like those with which the peo-
I pie are already familiar, to an extent
equal to its Treasury notes, say $780,
100000, or somany as may be required
to redeem the ,greenbacks. Let them
be Of the denomination of So, $40,
1 $50 and $50, with a suitable propor-
ton of 500. and $1,000 for large ope-
rations. ras :a,a.
Second-Let these notes be dated
on the first day of each successive
month, commencing with the first day
of July next, when tenimillions should
/ be made ready fer issue, and an equal
amount on each succeeding month,
until the entire quantity has been fur
nished. g.--...- .....
/ Third-Let these notes be converti-
BILE into ten-forty bonds at five per
cent, like those heretofore issued, at
4 the end of two years from date, but
not before. leau ~, o. rlgoi:.fr4 ~
/ iFonrth-Let Congress imperatively
require that these notes and no other
4 beipaid out for all disbursements OF
the Treasury, except those payable in
coin, so longas there are sufficient to
meet the wants of the Government,
and if the whole monthly issues are
not thus put in circulation, leI the
Secretary of the Treasury be required
to exchange them for greenbacks,. as
he will undoubtedly be able to do,
since they must be much preferred to
the latter" 3iG .HI It t.t.s ,.s,si'
The us. Economist, commercial
paper of Republican proclivities, and
of great weight with the mercantile
; classes, comments upon the Professors
specific as follows: a. s9- 9fa.
"Mr. Walker thinks this would be
an easy and natural method of getting
| rid of the existing greenback circula-
4 ton. aar afaIi ,Fa fc faa z9e
rtsHe regardsit as free from the dam
gers to the money market which at
tended the effort at contraction made
under. Mr.. MeCulloch's administration
of the finances, and as affording an
elasticity to the currency. We pre-
sumo he intends that the notes shall
be a legal tender for their full value,
without interest; and that the present
legal tenders. shall be cancelled to an
extent equal to the new issues; al
though he does not expressly state as
much in either case. Walker appears
to be so so enthusiastic over his spe-
eifc as to have entirely overlooked
one feature in its working, which
would constitute an insuperable OBJ
lection. The 6 per cent. notes which
he suggests, would operate in precise
" the same manner as the compound
interest notes lately retired. One
month after date, they would be
worth = per cent. premium on &C,
count of accumulated interest, two
months per cent. six months 3 pei
cent. and so on. The fact of the notes
being thus worth more than their full
value, and yet being usable only at pal
in payments; would of course cause
them to be held out of circulation al
most from the day of their issue; they
would, in fact, be security and not &
currency. 49,
q g The displacement of S10,000,00(
of grecnbacks per month, by these
notes, would therefore be an unquali-
fed contraction to that extent, and
would be open to all the objections
that were found to apply against the
former attempt at contraction. When
McCulloch retired only S4,000,000 O
greenbacks per month, the embarrass
ments resulting in the money market
and to the whole trade of the coun-
try, were found to amount to com
plete paralization of business; what
then, could be expected from a con,
traction of $10OOO,000 per month, as
proposed by Mr.. Walker? Three OF
our months of his process would
precipitate a panic over the whole
country. Mr.. Walker appears tc
think that, in times of severe pressure
in money, the notes would come into
circulation. Can he point to any one
instance in which The successive spasm!
connected with contraction and pre-
eeding it, brought ,the<s compounds
out of the hands of hoarders into cir.
culation? He cannot. 1t is not to bt
expected that the holders of a claim
upon the United States for giver
amount and interest, would sacrifice
the interest, and especially as, they
could always borrow currency upol
them for their full value. .., :
.stiMr. Walkers scheme thus amount.
to a funding Of United States note.
into temporary interest bearing Sc
curity; which temporary obligation
is to be convertible into ten forty
bond. Reduced to this, we can see nc
occasion for the intermediary agency
of the proposed rates. The green
backs might as well be converted into