Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1870-02-15
a Plan for the Resumption of Specie
Payments.

/
try, in which .he starts out with the
. proposition that the cause of all our
, iinaueial troubles is a deprecated
4 currency aat, 10 regard to the rem
edy for this fundamental evil, he
, says: =
THE REMfbY Is CONTRACTION.
"There is $ao other. We may at
tempt to evaat it az long as we please,
but we eanaGt escape it-come it
, must, and tbg sooner the better for
the whole eonhtry, especially for the
wheat and cctton growing States.
The only question which we should
consider i, how shall it be done.
We aeed not wait to reconstruct our
finances they will reconstruct them
selves if We first restore our currency
by reducing Il 10 its natural volume.
In 1860 our ejaculation was S207, 00O.-
GOO it is now 100000, 1000; while
we cannot use over $500, 900, 900 and
haze our currency on par with the
currency of commerce. But we need
not fix BIZ Lag any amount as to the
limit OF our circulation, nor any time
wbah we shall resume specie pay
mems both attempts would be absurd.
Lee there be a. gradual withdrawal of
the currency ,,and whenever the right
point has been reached, our paper
will TO at par with gold without an
act Of Congress. There is no neces-
sity for any coercion in securing the
great object. 1t should, in my opin-
ior. be on the part Of the people.
a VOLUNTARY CONTRACTION.
The pubic should be allowed 70
koep ar much currency as they
I please. and convert it into national
bo1ds wheucEer they please, after
short interval In this way the
work would be done with as little
mi management Or suffering rs possi-
\ BILE The IN &c iii which | would ac-
coTpIish undesirable object | have
before Indicated, but now repeat the
! man features:
THE PLAN.
Let Congress- authorize the is
/ sue Of compound interest legal-tender
notes like Ahose put out during the
was to an extent equal to the pres
cnt greeubaGks--ssy $3.50 600, 600
having three years to run, at six per
cent
2. Let these notes be dated the
first day q each successive month,
commencing, say, with the lst day
ot.Jgly next when $40 000, 900 should |
Be ready fer issue, and an equal
the entire qeantity was furnished.
3 Let those notes be convertible /
into ten-forts bonds at FIVE per cent.
at The end 81 two years from date,
bur not beige.
A. Let Congress imperatively re-
quYra that these notes, and no other. |
shalt be paid cut for all Treasury dis
bursements, except those payable in
coin, so lone As they are sufficient to
meet the wIEts Of the government
anG if the Whole monthly issues are
not thus pu% .nto circulation, let the
Secretary be required to exchange
them for Sreenbacks, as he will
doubtless be able to do, since they
will have the preference over the
latter. The .proviso should also be
made that an. amount of greenbacks
/ sh0ald be destroyed each month equal
to the amount Of compound-interest
notes issued
in this m$nner all the Treasury
notes now in circulation would, with
i'm three years, be withdraw
RESULT.
/. These ;notes being widely diff
fused, will fa1l into the hands of all
classes, aad consequently. if any are
DISPOSED 70 hoard or lay by as an in
veslment, they can do so. From the
experience we have had with the
fert issue; we may depend that this
viii take place, and the whole mass
be finally converted into bonds.
= Under this plan there can be
no contraction that is not wholly
voluntary OK, the part OF the people
for, so lar, as it takes place, it will be
done, notify the arbitrary fiat Of the
government, the banks, or the specu-
latiye classes, but wholly at the pleas
uye and convenience Of the commu-
ni;y at ierge.
>. II is ev;dent that since those
800 lay 10y tLose notes dc so for the
sake ~ lbe interest upon them, they
viii be CCrt&iu % pa them into cir
e;la,ion again if the demand for
money :. sach shat they can gain
hyre by.usfpg or loaning than by
kAeping Ehem. This will, of course,
prevent the possibility Of any eXtrav-
a9aaJ scaiCIty Of money or high
rate OF interest, since whenever the
rate is much above six per cent. the
pound. iaterest notes VIII be
brought again into circulation, the
money market will be relieved, and
all danger ct panic will be effectu-
ally preyensed.
4. Ihehe uotes will form an elaS-
az currency, in the best use Of that
term aud though elasticity is the
worst and most undesirable quality
, ia CURRENCY designed for permanent
, use, yet, asian alternative during the
, transition from vastly expanded, IL
radeemable currency to one equiva-
lent to gold, such quality will at
least prevent the danger of distress
and loss which many persons fear
would attend the absolute, direct
withdrawal OF large part of the cir
, eulating medium. At present the
, currency of the country. consisting
as it does, Of credit, or mere promises
10 pay at some future or indefinite
! period, remains a fixed guaranty,
without any reference to the wants
af trade. 1t cannot, like specie be
a exported and imported according to
: the varying demands Of commerce.
BY the substitution of compound-iu-
terest notes this popularity will no
n longer exist, because both eentrip-