, 1873-11-25

U
tor arc .,nado, relatively, moro soarcc, Il III
cronuvs tho chance Of their boing obliged to ro-
doom III ereole. It nsay be cot down as m axiom
in connection with orr currency, that the iu-
aoe a s @ from tas es'Sss o @ 4as 81 s s ses
nro rotoomnblo In groonbaoks, md will always
t9 worth Just aH much NJ tho greonbaclsg. Tho
vaue OF tho ourronoy therefore depends upon
tlon OF Its repudihtod notce, and not upon TIC
amount Of National Bank notoa In circulation.
TIE rnorosEp 3.65 rEn GENT bonds.
Mr.. boutwell, noxt proceeded to discuss tho
plan-whoh is now receiving oonaidoinbln nup,
siatos notoa to proHent thom at tic Treasury Of
The Unitod States, or st. tho oalco Of an Ass1st-
| ant Treasurer, and rocoivo for thom bonds bcar-
qts5ss Ito ns 3 p7ese S. iS rhsnosop Rs5 %
| holdor Of such bonds may desire the. notes
again, ho may present tho bonds and recoiyo tho
notoa with tho accumulated intoreat added.
Tho i1rst objection OF tho lecturer to this
proposition WAS orninently Boutvellian lie did
| not SEQ how tho Government was undcr any
| moral obligation to pay intoroBt on It's past-duo
paper To carry out Mr. Boutwell's principles
tho Governments, having once fostod this legal.
bounl to rcdeom 1t at al1.
Proceeding, then, TO consider tho practtca
tho volume Of tho currency, ho suggested that
under the manipulation Of clique Of epoou-
s,os' s5ss nm ~ IT. might ds as h,ppsn s that go
S5@ S29o 9,o99o9 4 $9oo ana even 1850 ooo
bondB received; !" that this would bo donno for
the lpurpoae Of. depressing prices Of COM
naoditioB, and that, when tho said clique got
ready to soll, they wonld suddenly present
large blocks Of those bonds at tho Treasury for
reoonyoraon into groonbacka, md, with those,
initiate the currency aud causo q speculative nd
vanco in prices. Truly, this is q wonderful
flight Of imaginationl It aeerns mover to havo
ontered into the comprehensive Boutwollian
no circumstances, lock up any money but hci,.
oton and that they can do that now Just as we'll
Al they could With the aid of tho s 65-10o per
cont bonds.
An1de from Mr. Boutwolls flights OF fenoy
about tho 65-100 per cent bond schomo 1t may
bo safe1y assumed that II tho groonbaoks ro-
in tho Treasury, it would cause great oontrno-
ton Of tho groenbscke II they, are paid out in
there would only DO contraction to The extent OF
tho balance Of greenbacks kept on hand by tho
treasury to meet any possible demand for the
rcconverelon OF bonda into grcenbacks, which
G5-100 por cont bonds aro iBsued in small
denominations aay e100s, s50s, and s25s, thoy
Will to some e1tent circulate ~ currency, be-
cause though not legal;tender themselves.
vice versa. This fact would koop tho now bonds
and greenbacks always ut par with zach othor.
According to the present market value OF the
$40 bonds Of tho United states which Is now
about par in gold, the value Of a 3 65-100 per
cont gold intoreat bond, should be about %
cents In gold. This would DO its legitimate
value as an inveatmont In accordance with the
rates Of interest in tile commercial world. Tho
issue OF tho proposed bonds would therefore,
fix the value Of grconbacks at about % cents In
gold, and this would be their value, even ii tho
Legal-Tondor net were repealed. The repeal Of
tho Lega1-Tcndor act (oxcops for debts contraoted
prior to such rcpeal) would, however, under
such circumstances cauae tho groenbacks to
gradually disappear from circulation, and become
absorbed in bonds as fast rs apoc:o came into
tho country to sn1plya new basis Of redemption
for tho new bank currency tlat would be Issued
nfter the repeal Of the act.
Wo might take up almost any other point In
Mr. Doutwolra Lecture and show how tho sAmo
narrow vicws which marked his administration
Of THO Treasury will probably govern his course
as Senator, but theae arc enough.
Ar. Boutwell's utterances on tho subject OF
finance remind us Of q well l-known fable shout M
animal who persuaded his indulgent parents to
obtain for him q Lions skin in which to go
aud iucouyonlence to themselves, they provided
him with tho disguise ho had begged for pnd
in it ho stsuttcd forth, believing himaclf Tory
lion. But, owing TO tho length Of his oars and
tho discordaneo Of his bray, when ho tried roar;
laaghod at him, until Io was clad to run homo
leaving liB bravo coat behind.
Tho moral Of this little story applied to h1r.
Boutwell,, is that the fact Of having been secro-
tary Of tho Treasury docs not by any means
reasoncr. Whom we recall the fact that man
OF this calibre controlled the finances Of the
nation, with m autocralio will, for four years,
what significant commentary it Affords upon
the syatem ct RatEonags which gives such places
to petty partisan pollticlannl