Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-08-12

any time, and into which legal ten
ders may, at the option of the holders
at any time be converted. 1t is no
at all likely-that the currency WoulC
fall so far below par in gOlC
that any bond would be redeem
ed in a less valuable currency thai
that which the Government got for it
II such instances occur the hardship
win not be great however. Take th'
bond holders Of 1854, who, according
to Jay Cooks tables, gave little les
than forty cents in gold for their bonds
They have already received six Pc
cent on their investment and got The
principal returned to them, and still
/ have the bonds. So II the currency
in which the bonds are redeemed
were to fall even 10 sixty cent
| in gold on the dollar, which is
not to be anticipated, these
! gentlemen will have suffered
much by their self-sscrifcing pur
chase of the bonds at 40 cents. ]
know whole families who have suf
fered more by the war and by the
legal tender act; but there is no prob
/ ability that this policy will depreciate
the currency at all for any length O
| time. Our 5 Dos have been below pal
in Europe, not because of a lack o.
faith in the resources or stability Of
our government, but because it is vel
known that the people regard them as
justly payable in greenbacks, and that
our necks are not yet cailOUs enough
to bear whatever yoke our agents put
on US. The credit Of Great
Britain rose when she COM
PEELED her creditors to take three
per cent. for bonds bearing a higher
interest, and if we, in strict sccOr-
dance with our contract, make our
debt easily sUppOrtsble, and, there
fore, sure to be kindly borne and
the bonds will have a value denied TO
those compounded Of ''repudiation
and extOrtiOn." The effect of this
system, when outstanding notes and
bonds are all converted, by purchase
or payment, into the three per cent.
legal tenders, will be the first TO give
US currency superior to any we ever
had in these important particulars.
First, it viii be a legal order for
sll purposes whatsoever; it will
pay every debt, taxes and, in fact,
buy every commodity and will rule
every money transaction with the
power of gold. Second, it viii be q
stable currency. Its constant convert.
ibility into bonds bearing a fixed rate
of interest will give both it and the
bonds a value as stable as that of the
consOls of Great Britain. This quail
ity being obtained it viii be OF no
more importance 50 far as the adapti-
bility of the currency to all the uses
of the people goes whether a dollar Of
It will buy exactly a dollar of
gold than whether it will
buy exactly a bushel Of wheat. Gold
will remain as nova mere article of
commerce and Of no more influence on
commerce. than any other article, eX-
cept as it is the measure Of values in
about half of the countries with which
we trade. If the American measure of
value was the paper dollar and the En-
glish the pound they would keep
about even in proportion to each other
as they do now. Our foreign trade
will not be injuriously affected by the
fact that the measures are not the
same any more than our trade with
France in silks is affected by the
fact that our measures of length
are not the same as hers, and if our
legal tenders and the English pound
should vary in proportion to each
other, such fluctuations affect chiefly
our foreign trade, which is not one
fiftieth part IS great as our home
trade. But, if we had a currency re-
deemable in SPECIE as the Republicans
propose, it would be incessantly ex.
panding and contracting, not because
OF fluctuations of the business it is
used to transact, but because of the
export of our gold to settle adverse
balances OF our foreign trade. The
whole superstructure of our domestic
business would thus be necessarily
racked by mOvementOi thefoUndatiOn.
Third, it will be an elastic currency,
contracting and expanding to fit the
fluctuating demands of trade. At sea-
soDs when large amounts are needed
bonds win be converted into currency
to meet the demand, and when that
falls off the surplus will be reconsid-
cred into bonds. It will always
be sufficient, but never excessive.
Fourth, il will establish a moderate
and nearly uniform rate of
interest. AS much viii be is
sued at once as viii command in
vestments preferable on the whole TO
Government three per cents. It will
thus establish the average rates paid
by business men at about five Der
cent, instead of nine, as now. Once
established, these rates will be COM
paratively uniform, because as they
tend to rise more currency will be
issued, and as they tend to fall more
viii be exchanged for bonds Let
us see the effect of this policy in
lessening the burden Of the debt.
Assuming that it viii take one billion
of currency to reduce the interest and
meet the present demands of trade,
the people will then pay $40, 600, 900
interest, instead of $3.50, 0,000, 900 in
currency as now. The currency Will
increase probably in an equal ratio
with the population say, two and one
half per cent of twenty five millions of
dollars the first year. II the people
nav the interest OF the bonds and aD-
nly the natural growth of the curren-
cy to extinguish the principal, the
whole debt will be paid in about 80
years; or, if they apply the natural
growth Of the currency to the interest
81 the bonds, the whole burden of
he debt will be less the first year
han the burden Of the present
national bonds subsidy alone, and
his increase Of currency, to keep pace
with the increasing population, viii,
IN a few years, pay all the interest
and gradually extiDguish the pFinci-
pal. But we will be told the legal
lenders viii be a debt outstanding
when all the bonds are paid. They
viii be no debt in any proper sense of
the word. The Government will be
bound then to do what It always has
been bound to do but has never
done - furnish the people all |
their money the measure of exchange
and distributed OF all their values. It |
will be necessary to keep up the per
capita circulation and maintain its |
and elasticity by some suit |
able means. The people will have |
rot a good money, stable and elastic.
low and uniform interest !
and thus promoting happiness and in
Iustry By distributing equitably the |
increase OF the land between
capital and labor. The curse
lf the debt will thus |
turn to blessing by teaching us how
10 escape the misery which has
robbed and degraded the masses of
au nations from Israel TO Great Brit |