Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-11-13
Financial Propositions.

fgss. Financial PFopos1t1onS.
It is announced, with some appear
ance of authority, that the officials at
| Washington, are disposed to advise
Congress to set the Treasury up in the
banking business. The details of the
plan are indefinite, but generally they
contemplate the authorization of a bond
bearing 3. IS per cent. currency interest,
convertable-as the phrase is-into
grccnbaeks at the pleasure of the holder.
This bond is also to be exchanged at par
for greenbaeks, and, it is said, the bank
ers are to be allowed to use it for their
reserve.
So far. the project seems to be nothing
more than an attempt to borrow money
at low rate of interest, to be paid on
demand. At present nothing is said of
an intention to increase the volume of
greenbaclxs, except to the extent of the
fortY-four millions of reserve, five mil
lions of which have already been paid
out to meet the current demands upon
the treasury. II is urged that, in the
present shaky condition of some of the
savings banks of the country, such a
bond would be a favorite investment,
and that especially country banks would
be inclined to put their cash in hand into
such security, instead of, as now, de-
posting it with some city bank which
pays interest. 1t seems to be eontem-
plated that part of the proceeds
| Of the sale of these bonds will
be used to purchase outstanding 5-20's,
and part viii be kept on hand to meet
the calls of those who desire, at any
time, to convert the bond again into
I greenbaeks. One of the principal viz
tues of this scheme is set forth in semi
official quarters as consisting in its fur
nishing the requisite elasticity-the due
expansion and contraction-ot the cur
rency to meet the varying financial CON
ditions of the country,
|. 1t has been said heretofore in the
( Freeman that There can be no possible
| objection to any bond which will lessen
| the burden of the public debt, and if the
1 treasury department can borrow money
/ at 3. 65 per cent. il ought TO be author
/ lied to dose. While, however. the 1--WE
! per cents and the six per cents already
! issued can be bought in the open market
at rate which will give the holder
more than four per cent gold interest. g
/ bond bearing smaller rate of currency
+ interest is not likely to be taken very
| eagerly by money leaders. Besides, 1t is
/ not easy to see how such bond as Is pro-
/ posed can he successful in any event,
! except so far as il may temporarily be
4 Eetnployed by capitalists in the city as q
I means of getting interest for idle money
t in loan which can be called in al any
/ moment. And the government could
| not safely take money in that way with
! out keeping it on hand and thus, in
! effect, becoming bank for deposits,
! paving interest bat not using the money.
/ This might be convenient for capitalists,
but it does not look like profitable line
of business for the government to go
! into.
/ All devices like this, at the best, are but
makeshifts they do not reach the real
/ difficulty which so far as it is scca-
stoned by scarcity of currency, is
/ the result of governmental meddling,
! and will not be likely to be remedied
by more meddling. A currency that
| IS fixed in its volume is and must
/ be productive of mischief. The hold
/ ers of it will not care to have it idle
/ when money is plenty, and will be
| vary likely to use it IN way to in
| fiate prices and stimulate speculation,
| and when the reaction appears there
! will always be trouble. Business done
| largely on credit is subject to reyul-
| sions, and when those reyulsions come
| the less cautious will be the sufferers.
! What is called an elastic currency would
not be a sure remedy for overtrading I;
but the government that undertakes to
/ provide that or any other currency
| will be very soon at the mercy of the
/ spectators, and will have its policy dicta-
| ted by those whose interest in the finan-
/ ces of the country is subordinate to their
private or political fortunes. An ex-
| tension of the present banking system
would undoubtedly furnish all the help
that legislation could give to the busi-
ness of, the country. When people
wanted .. money they could
| get it, as they can get
any other commodity, by paying for il.
A scarcity of bread would be greater
ealamityythan scarcity of money, but
there are few men, probably, who
would recommend a government regula-
| tion of the amount or value of the wheat
crop In order to make such calamity
/ impossible; or that the government
i should take wheat ON deposit, paying in
/ terest on its value, to make sure that
there would be supply whenever need
ed A government that was omniseient
and never troubled with listening to the
1 advice of interested politicians, might,
/ perhaps, do public service by perform
| ing such regulatiye work, but, unfortu-
nately, we haven't such government in
this country, and are not likely to have
until the millennium.
1t is, however, possible to improve
| somewhat the condition of business, Ii
the people can be persuaded that they
i are not only capable of attending to their
/ own affairs, but ought and must attend
to them in order TO keep their business
prosperous. Self-reliance is more need
ed than government help. 1t is not
stimulous the patient wants; it is re-
turn to the use of his faculties in taking
care of himself. At least it is worth
while, government meddling having
failed, to try the experiment of letting
the people regulate their business and
monetary interests in their own way.
In the Fireman. o.w.w