The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1870-01-13
Resumption of Specie Payment.
Letter from .AD,asa Val

| HPthOh O1 DpCSIC L
! Letter from Anaasa Walker. fr
We find in the Chicago daily Tribune of
Jan. Sd, letter from Amasa Walker,
| ESD, dated Dec. 23d, and addressed to
Banking firm in Chicago. We think
/ Mr. Walker errs in his assumption tina t
the business Of the country does not re-
quire and cannot float On specie basis
over $300,0O0,0OO of paper currency !;
| bat as this opinion is not made a basis
for any plan of legislation, it can do no
injury. The introductory portion of the
| letter is devoted to the consideration of
the necessity aud advantage of our early
return to a specie basis. As the way to
accomplish this object he says;
The public should be allowed tie keep as
much currency as they please, and con-
vert it into national bonds whenever
they please after short interval. In
| this way the work wonld be done with
as little arrangements or suffering as pos
! .ible. The mode in which | would accom-
plish this desirable object [ have before
indicated, but | now repeat its main fea-
lures.
~ THE PLAN.
/. Let Congress authorize the issue
of compound interest legal-tender notes
ike those put out during the war, to an
extent equal ty the present greenbacks-
say $500, 900, 000-having three years to
run, at per cent,
2 Let these rotes be dated the first
,Ioyy n aol,
ing the lst day of July next, when $40,
100000 should be ready for issue and
! equal amount each month thereafter
| until the entire quantity was furnished. =
! 3 Let these notes be convertible iHto
| 10 40 bonds at 3 per cent at the end of
t,Uo gears from date, but not before. "a
4 Let Congress imperatively require
| that these notes, and no other, shall be
| paid out for all Treasury disbursements
except those payable in coin, so long as
! they are sufficient to meet the wants of
/ the government and If the whole
| monthly issues are not thus put into
| circulation, let the Secretary be required
to exchange them for greenbacks, as he
will doubtless be able to do, since they
| will have the preference over the latter.
| The proyiso should also be made that an
amount of green backs should be destroy
ed each month equal to the amount Of
| compound-lnterest notes issued.
In this manner all the Treasury notes
now In circulation would. within thee
years. be Withdrawn. tl-s =
| RESULTS.
These notes being widely dihused,
will fall in the hands eff all classes, and
consequently, if any are disposed to
| board or lay them by as an investment,
| they can do SO. From the exp erience
we have had with the first issue, we may
| depend that this will take place. and the
whole mass be finally concerted into
bonds. ssf 3@t @stRa- = = 3
? Under this plan there can be no con-
! traction that is not wholly voluntary on
the part of the people for, so far as it
takes place. it wi. be done, not BY the
arbitrary fat of the government, the
banks, or the speculative classes, but
communities at large.
3 1t is evident that since those who
lay by these notes do.so for the sake of
an interest upon them, they will be Ger
tain to put them into circulation again,
If the den an2 for money is such that they
cad gain by using or loaning than by
keeping them. This will of course pre-
vent the possibility of an extravagant
scarcity Of money, or high rate of inter
est, since whenever the rate is much
above per cent the compou nd-interest
notes will be brought again into circula-
ton, the money market viii be relieved
and all danger of panic will be actually
prevented.
4 These notes viii form elastic curren-
cg,ln the best use Of the term; and though
a. ~ 4 I
able quality In currency designed for
permanent use, yet. as an alternative
during the transition from vastly ex-
panded irredeemable currency to one
equivalent to gold, such,a quality will at
loss which many persons fear would at
tend the absolute. direct withdrawal of
4 large part of the circulating medium.
At present the currency of the country,
consisting, as it does, of credit, or mere
promises to pay at some future or indefi-
mite period, remains fixed guarantee,
without any reference to the wants of
trade. 1t cannot, Ike specie, be export-
ed and imported according to the vary
ing demands Of commerce BY the sub
stitution Of compound interest notes this
peculiarly will no longer exist, because
both a centripetal and centrifugal force
will be introduced eentiipetal, since
there will be a constant tendency to hoard
ing centrifugal, because the demand
of trade will draw out these notes when
ever, and to. such an extent, as they are
really needed. -s ~
5 Another point worthy of. special
notice is the re,y gradual manner in
which contraction will be effected. AT
first, only ten millions of the compounds,
will be issued, and these will DC distrib-
uted broadcast over the land. Gradual
~, as they fall in the bands of those wlio
do not need them for Immediate use.
they will be boarded Another, and
still another, monthly installment will be
put in circulation, and treated in the
same way but not a. dollar can be abso-
lutely withdrawn from use until the end
Of tsco gears, and then only at the rate
OF ten millions per month and it will
be only at the end of FIVE years that the
whole of $3.50, 000, 600 can, and if need
be will, be kept in circulation.
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