Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-11-05
Financial Propositions.

It is announced, with some appearance OF
authority, that the officials at Washington #,
are disposed to advise Congress to set the
Treasury up in the bansing business. The
details of the plan are indefinite, but gen.
orally they ,nte nplate the authorization OF
bond bearing 365 per cent currency Inter.
est, con sertible-as the phrase is-into
.reenbacks at the pleasure of the holder.
This bond is also to be exchanged at par for
yreenbacks, and, it is said, the bankers are
20 be allowed to use it for their reserve.
So far the project seems to be nothing
more than an attempt to borrow money at a
low rate Of interest, to be pail on demand.
At present nothing is said of an intention to
Increase the volume of greenblcks, except to
5he extent of the forty-four millions of re-
serve, five millions of which have already
been paid out to meet the current demands
upon the tire lsury. IL is urged that, in the
present shaky condition of some of the saw
ings banks Of the country, such bond
would be fav0rite investment, and that
specially country banks would be inclined
60 put their cash IN hand into such secu-
rlety, instead Of, as now, depositing it with
some city bank which pays interest. 1t
seems to be contemplated that part of the
proceeds of the sale of these bonds will be
used to purchase outstanding 5-20's, and
part will be kept on hand to meet the calls
OF those who desire, at any time, to convert
the bond again into greenbacks. One of the
| principal virtues of this scheme is set forth
70 semi-ofhcial quarters as consisting in its
furnishing the requisite elasticity the due
expansion and contIactIon-of the currency
60 meet the varying financial conditions of
the country.
| 1t has been said heretofore in the FREE
MAN that there can be no possible objec ton
TO any bond which will lessen the burden of
The public debt, and if the treasury dep art
nent can borrow money at 3.65 per cent it
ought to be authorized to do so. w nile, how
ever, the five per cents and the six per cents
already issued can be bought in the open
market at rate which will give the holder
core than four per cent gold Interest, bond
bearing a smaller rate of currency interest
is not likely to be taken very eagerly by
money leaders. Besides, it is not easy to
see how such bond as is prop Ised can be
successful in any event, except SO far as 1t
nay temporarily be employed by capitalists
n the city as means of getting interest for
idle money in loan which can be called 10
at any moment. Aud the government could
not safely take money in that way without
keeping it on hand. and thus, in effect, be-
coming hank for deposits, paying inter-
est but not using the money. This might
re convenient for capitalists, but it does not
look like profitable line OF business for the
government to go into.
All devices like this are at the best but
rakeshifts ; they do not reach the real lffi
:ulty; which, 80 far as it is occ4siOned by a
scarcity of currency, is tie result Of govern
INT ntal meddling, and will not be likely to be
remeded by more meddling. A currency that
IS fixed in its volume is and must b. produc-
tive of mischief. The holders of it will not
care to have it idle when money is plenty,
md will be very likely to use it in way to
uHate prices and stimulate speculation, and
when the reaction appears there will always
he trouble. Business done largely on credit
Is subject to revulsions, and when those re-
vusiOns come the less cautious will be the
sufferers What is called an elastic currency
would not be a sure remedy for overtrading
ut the government that undertakes to pro-
vide that or any other currency will be very
soon at the mercy Of the spectators, and
will have its policy dictated by those who's
interest in the finances OF the country i.
subordinate to their private or political for,
Cunts. An extension Of the present banking
system would undoubtedly furnish all the
help that legislation could give to the bus
ness of the country. When people wantet
money they could then get it, as they car
get any other commodity, by paying for it
1 \ scarcity of bread would be greater Ca
4 lamity than scarcity Of money but there
are few men, probably, who would recon-
9 mend a government re suation of the amour
n or value of the wheat crop in order to max
. such calamity impossible or that tn
government should take wheat on deposit
q paying interest on it's value, to make sur
that there would be a supply wheneve
n needed. A government that w IS Omniscien
r and never troubled with listening to the adj
it,ioo IF into cd rhar
r do public service by performing such rec
o ulatve work, but, unfortunately, W
have mt such government in this country
and are not likely to have until the millen
!. mum.
n 1t is, however, possible to improve some
{, what the condition of business If the peop
+. can be persuaded that they are not only ca
d pable of attending to their own affairs, bu
% ought and must attend to them in order t
! keep their business prosperous. Self-reiAnC
% is more needed than government help. L
n not stlmulants the patient wants it is r,
If turn to the use Of his faculties 10 tax
r. care of himself. At least, it is worth VIII il
government meddling having failed, to tt
p the experiment of letting the people reg,
ID late their business and monetary interests
At their Own way. c.. W. W.
at --.----------
ed SroKEs.-Last Wednesday the third tri
re of Edward S. Stokes for the mui der of Fl,
BY was concluded Judge Davis having char
tb ed the jury they at S 3-4 P. M, retire
ad About 10 IL O'Clock the jury came in
conrt and eyad what oonStituta1 ,purdar