New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-05-18


crninate would pay the interest at any point wherc
il would be found expedient-at National Banks OF
where they have correspondents in other countries W"
should avail ourselves Of whatever aid these Pupio 'so
cics could furnish. The National Banks anu 'nei "
RESPONDENTS abroad would act clearing houSS'
and would have an interest in protecting our ponu'
They woud loan upon them and thus supply the thHd
reaujse st inflated in the Crcular-that is the None
tizaton of tbe puc debt few banks or bank-
ers however high their rank In Europe to-day! VINO WIN
not be proud to have the name OF actihg as oh,cu
States Government clearinghouse, TO say ho'hg vi 'o
legitimate advantage and prestige which they Know
would accrue to them thereby from other investments
and outside business, we'll All special asehcleS
or monopolics should be avoided; there should DE
q frce field and the best organized or most
active hanks or banking houses would of necessity reS
late andtkeop up the standard OF the Others we Win
such free competition there need he no lear Oh uuer
hand dealing We protest, moreover against the term
Foreign Agencies in the sense in when IL Is used
They will be our own Treasury agencies, aud SUBJECT III
all respects of its business to it, sole control or Trans
ferred at the first appearance OF misleading or nsubor
dinaton Neither do propose to discriminate OF egis
late in favor Of any particular currency. We merely
elect the payment of interest in the only three stand
ard currcncies which are international that is 10 say
which circulate freely outside of their own national nm
its We specify the payment Of the gold dollar at Its rel
alive value in gold francs or pounds sterling
Mr. KELLEY-In other words, a dollar Vi Soiu ooih
would be worth five francsl
Mr. BowLEs-A dollar in gold today is worth at our
mint about fcs lsc. But have been asked why not
insert the actual present vauef In the first place We 10
not want to specify too much In the second place. VIC
want to allow the possibility OF uniform currency
OF these days.
INTERNATIONAL TRIPLE CURRENCY.
Mr. sCUENCK-Suppose we should have these payments
in triple currency would you not have the creditor
crumbng that he was not getting quite as many goid
dollars in gold as he entitledtoi
Mr.. AILIsoS-Do you put your equivalents in at the
option OF the Government or Of the purcha'erf
Mr. BowLEs-At tho option Of neither, but at the
WE'LL known equivalents OF the mint
Mr.. scHEYCk-My question is whether you would not
have the creditor grumbng that dollar In gold was
worth little in francs and centines than he was
allowed by the agenti
Mr.. BOwLEs-The creditor always has the power OF
sending the coupons home and receiving their face In
dollars OF otherwise disposing OF them to the many
who would buy them at shade less than their value
There persons who would grunbe even lhey were
overpaid
Mr.. MAYSARD-Do we understand you rs recommend
ing the adoption Of a per cent rate
Mr. BowLEs-Yes Sir. My convictions upon that point
have long been fixed and declared.
Mr.. MAYSARD-You propose to monetizc these bonds
all over the wOrdi
Mr. BowLKs-Yes Sir; 10 plant them wherever they
may fall and prevent them from oscillang between the
two continents at time being driven home, and at
another hurrying back to Europe.
The Roofing OF AMERICAN FINANCE IN ALL COUNTRIES
O. Mr. SCHENCK-Your idea is to Issue small bonds as
substitute for larger bonds and have these smaller bonds
sink lower strata Of society, and be held by
them instead Of being in the hands Of larger capitalists
or for purposes Of ciTcuatiOni A. Yes, sir; would
strike with them deep into the subsO of capital where
il abOunds there TO fix the roots OF future CONNER
cal finance American securities in Europe are now ly-
ing on the surface having mixed yet To any great
extent with European frstcass investments This must
be remeded and this is for earnest desire
that the Government and people at home shall under
stand and cooperate with work abroad.
Mr.. MAYNARD-Another idea il to have the interest
payable either American dollars in francs pounds
sterlingl
Mr.. BowLEs - Certainly, dollars francs and pounds
sterling. One the other of them are known and cur
rent all the world
Mr. MAYSARD-The whole thing, then, finally resolves
itself points first, per cent interest second
that interest payable i'll either Of the three currences OF
civilized nations
THIS POLICY CONTRACTED WITH OTHERS.
A. Yes. Sir previous to the successful policy initiated
by Mires, the French Government had been operating
through bankers alone and the bankers distributed the
bonds as they chose The bonds did not 60 the general
public but only such parts Of them the bankers chose
to spare thus the Government less at the
mercy of the bankers, for its bonds had but limited
and easily controlled circulation. Since the adoption OF
this policy of applying directly TO the people the
Government has gained enormousyin strength, popular
ity and independence Of its finances There some
very curious illustrations OF this bankers control for
instance:
A recent Government loan proved, upon allotment to
have been almost entirely taken up before the subscrp
ton was publicly annOuncedthe bankers in charge hay
ing advanced to the Government and waited
fully for convenient season of peace and money plenty
insure its profitable manipulation. One consequence
Of this that the allotment outside OF those especially
favored was ridiculously small in some much
than the ten per cent required TO be deposited upon
application that the applicants lost in displacement
and interest the ten per cent deposited during the
month two which elapsed before the final allotment,
than they gained upon the which they received
No comment Is required
At last MirGs appeared. He said, we viii apply
directly TO the people, facilitating them by the issue OF
small bonds" The effect was tremendous, and the
amount applied for three times taken. The Govern
adopted the policy Of first alotng in full to all APP
pcants for the smaller amounts, and what left
app0rtioned among the larger subscriptions.
Mr.. ALusoS-Your idea is, that by that means you
would get them into the hands OF artisans and people OF
small means and needs, who would lay them up, and
that they would not suffer oscillation be subjected to
speculative movementsi A. Yes, Sir wish your Com
mttce could have personal evidence OF these facts.
wish you could take the trip TO the old world that
you did to San Francisco. 1t would result in saving
country millions OF dollars.
Mr. BRooKs-If the Government could fund the debt
at per cent the country could afford to send usi A.
would have you go officially a Committee, and 90
the ground with such able pilots could be furnished
You would be convinced OF the exact truth Of what
here tell you. Gentlemen, come here with hidden
aim. Our interest is to alay this ghost to get
this debt funded and shelved as soon as possible.
Mr.. ALIIsoS-You want to have it placedi A. Yes,
Sir.
THE SPECIE PAR QUESTION.
Mr.. HooPHR-When those bonds are issued, you would