, 1870-06-10
MONETARY and COMMERCIAL
MONETARY.


and Means Committee on Monday e1cites
enough commen. from the press generally to
show tho possibility OF it, becoming a living
isere- Section g OF the bill author1zes the Sec
rotary OF the Treasury to ISSUE certlflcates OF
deposit, bearing PEI cent interest N Eoid, fo5
said gold to be used in tue Pay1nent ot. tho $40
bonds, in the order IN which they become due,
according to their class, date, and number,
beginning with tue bonds first lssned, and
proceeding TO those OF later date, as the seere-
tary may find himself IN command OF specie
sales Of tho new per cent bonds. It is also
provided that tho gold 90 deposited, and for
which per cent certificates are accepted,
shall not q Withdrawn, except At ten days
notice, and ntaN not draw interest," unless ieft
On GeToat at least tMrty Days. This soction
in the following exaggerated view Of its DOS
aible ehecta:-
Thcse is now -, or, 600 q rul'lc gold deros-
ited N tns Itsasssy " M aaa, takng the extreme SUP
tHe sn,s1T IN ~ hanrs IN nTete
lands aud Il hoarsIs.s tdese would then IS, saS,
{1o 900 Of public gold deposited in the Treas
aIy, and an equal amount Of PCT cent goid cert
Ecates u o tns aanns o. ne panilc VIE sais
.a. e",, ,t, e ~ Eea't ~ III ~
inns nattI out hy he TeasurT Wn,ijd arain e- rs
turu into It's hands. On deposit, md tic gov
ernmcnt would have. ss6o, ,ood 900 Of eertin-
would De again pai1 @ out ID nc Ts'ism9aon na ~ o., OF
~ ~ tdento oI 'en1th thn vcrnm"nt thsrshv - ~
nirninishinr il dTsHtTensy tobIi1asions AMI II
nd the saIne extent Increasing jts demand obli
cations to pay gold. How far the process might
bn carried it u impossible to estimate the limit
cn1eo 70 enrIast ~ Eo1a WIZ .ae Ifeasa1s ~.
suGu s,ona4ttart 1st .. nn,bIs ~ II
nay nav m say the bontis Of IsSS. It
,rob,a tIrn lave outstanding s0o. .opo oot1 of mr.
cent demand oJteatsons. WITCH Tit Ss5S 900 Goo
Of ErecnDacks. would maize folai II Ss5s, 600 coo
Qr demand ebii9asions represenked BY resrrs qf at
taost ~. .oooc co II go.a oened ~ Tie Iorsr,:nsent
with such condition OF thiuss, What. would be
tne PROSPECT o. fesnmpuon u speGe Rasnaents3; nj
wi.h ihc na1,raliS resnlsag i,1at1nn Of ttle 9oj,
premium, it would be sitnpl7 prepostervus to ex.
poet thai investors would take per cent bond ut
| par in gold.
Now, let ua suppose that the terrible Cbut
| improbsble) state Of things coufured up by the
! Etsie2iu. VIZ. when the government should
| Lave succeeded 10 borrowing from the people
$500, 600, 900 OF gold at per cent, and raid on
! $500. 600, 600 Of 6 mar cent bonds with it-haj
Actually come to pasB. What would be The
| result Why. simply, that therp would be q
saving Of S10. Zoo, QUO Of interest per annum,
! and HAT the annual charge for interest would
be reduced, go TINT the receipts for duties
wonid leays surplus Of from s6o,ooo.ooo to
pay Oh nearly 10 per cent Of tl,o whole Of
| these demand obligations every year, even il
never another cent were to como into the
| Treasury on. deposit. Tho bulletin, however
! has jumped at its conclusions as wildly, AMI
euppoaea as improbable case, as q man
who, hearing that tleso would bt
forty ;uches Of rain fall in nliuoi.
next year, should calculate that it would Hood
the whole country near1y four feet deop, ant
should consequently get to work to build IL
ark to save him from the second deluge. It i
tolernlly certa1n that if this per cent in
te1est clause wcre to become law, there
would be some gold deposited IN the Treasury
to got tho interest. II the depositors saw
that tile Is per cent Icsorve required to be
kept against tlese depo4its was kept good
they would gradually acquire the samo conf
deuce that depositorH III banks have for tht
security Of their money, and tho deposits oi
gold would gradually Increase. Thert
would probably come times when the conf
dence OF gold depositors would become shaky,
and some would begin 10 give the ten days
uotire; Ibis would pe the signal for the Treas
ury to strengthen itself in gold, and tie warn-
ing would ba the me1ns OF preventing ans
suspension of payment on the gold cettih-
Gates. Depositors of gold would, st least, be
nwafe of tEe puspose e rbish ths gold would
be devoted. ind it would be optionaI with
fl,em whether they wouId nccept the condi,
| tinI,E M smell sitnation. -fberefore a. i'm.
.ririet1 hv ttc B,,Nef;, Vnuid bo nossible. un.
iess;tfa 1eon1a Who denositsd the gold were
@rf1lfno Il sh1n}d In N.
Thr prain nrnduners OF tho Northwest NAV
beein Il ioot m W;ti1 confdenee for an increase; m @