, 1873-10-22

why BLOCK arc also co0cl6elF pointed ouE AHu
shown to bo likowiso amouablo to tho common
law.
S.=....---s==
THE NATIONAL BOARD OF TRADE AND
+; SPECIE PAYMENTS.
porhaps tho most important question to be
considered by tile National Board OF Trade ia
that OF return to spocio pnymonta. Tho re-
cont panio has exploded much that was fraudu-
lent and unsubatantial, and business has gravi-
tatod, without any public effort, in tho direction
OF epecle payments. Tic par OF silver and
currency is very nearly, II not quite, reached.
In soyeral looaiitios, Bilver coin ia already in
uao in small transactions, a large number Of
persona, however, ASSUME that thoro is dangor i
in specie resumption that 1t will contract tho
currency, cramp trade, and toud to porpotuate tho
existing atringoncy. Theao persone-aud We u.s.
sumo TINT thoy will he represented In the Nation
al Doard of Trade-offor as a remedy, or as'
their substitute for specie resumption, plum
for providing flexible currency" This fox
| ible currency plan is SIMPLY that tho United
States ahall mako groonbacka and bonds OK
obangcablo for oach othcr' 30 that holder Of,
| bonds can at any timo got groonbacks for thorn.
and tho holder OF greenbaoka ut any: time got
bonds for them. 1Ye have favored this plan in
times past, but not on tho hypothesis that It
would tepd to postpone specie payments. On
tho contrary, 80 think It would hasten apecie
resumption. It is commonly supposed that
under It, wlenoyor there is, O domaud for
currency thero will bo q voluntary conver-
sion Of tho bonds and an issue Of
groenbauas equal to tho exlgDuojes OF the
moment; and TINT, when the occasion has
passed, tho aurp1uH curropcy viii tlud its way
beok to tho Treasury for reconvoraion into
bonds. But can such 4 result bo always de-
pended upon7 There Is a very sovcre ssFlngen-
cy now, but this atrlngoncy docs not prevail
among tho bondho1ding clase. They eau get al(
tho greonbacks they want by selling their bonds
in tue opeu market. The Government could
give them no more. As to thoBo who aro not
bondholders, they could get no moro greenbacks
under tho plan proposed than tloy Gan now. =
Again; no person will invoat currency In
thqsa convertible honda except those who desire
absolute security and instant paymeut on call.
This includes all tho unemployed currency Of tho
country. IT, in addition to thus absolute security
aud payment on call, the Govezumons offera in
torest, it is likely that every dollar Of currency
tic momont 1t III disangagcd, will he invested it
convertible bonas. Az tho banks will lereafto,
ply nd interest on balances, a1l unemployed do
posita wil 10 likely to find its way into thoss
lnterest-bearing bonds, and, though saving
banks may offer per cent interest on dopos
its, payable after aisty days. notice, tho grea
majority Of deposltors will prefer nasiona
bond bearing lower rate OF interest," bp
convertible on demand into currency. Tho lex
= ibility promised by tho plan will, therefore
be first felt In the withdrawal Of sill unenaploye
currency NOW left on deposit in bauka aud aav
= ngs institutions. aud its Investment in thos
:. convertible bonds, whore tho security is perfee
- and payment on call certain. It may, therefore
result in suoh contraction Of the currency thu
:, specie payments will bo brought about by til
:, very moans intended to postpone them. It.
- nothing elae than tho offer Of the Govornmct
a. to pny interest on its past-due uotos-@hich
ought, Of courso, to do unless 1t Ii prepared
redeem them in coin.
1t Ia certain tAat this ia, by far, the most +
yogablo time slnoo tho War tor a reaumptle
e. of specie payments; and 1t must bo detormlut
.is now whether they aro to be resumed again
u this generation. This bond-grcenback. p1t
II. il based upon the hypothesis that we q
H. not to resume ut present; but, as ,
sh have shown, tho supposed imitation Of tt
currency, actual or possible, may not tako pla
as at MI, On tho other hand, TUG offering OF q
10, aolute security, payment on call, and a ceFta
m: rate Of interest, being .bester than can
P. offered by tho banks,-will result In tho lnvei
To mont Of unemployed currency in those bonds
lily largely that specie Payments may follow t
To- consequent contraction OF tho currency. L
re- eject upon tho groonbaozs would bo two'fo]
Dx- Their vnlue would 10 Increased by 3 diminuti
Mt. Of tho amount In circulation, aud their Pal
tue would be made equal to that Of All intoreat-be
ton ing bond. All theso things arc to be careful
md considered In Weighing tho merits Of the bor
ou- groonbaok plat',-espocially II that plan ie p
Inv poaod as a u,eauB Of avertiug or postponl
11a- speoto payments, .. .,
ycs tion Of tho National Donrd of Trade Rhhrca
AZ opjuiou that thero should bo no return to spe
tho values, Or that. like distinguished naembol
atea Congress, they think 1t is matter for pl|
Do congratuatlon that 70 have currency viii
"boyond the soa and in foreign lands, IL,
rod tqnatcly not money: and ia not e1porta1
blo. We will assume that whatever opposition til
arc may be to resumption rests upon conRideratl
tho othor than that Of perpetuatiug m irFe1e
tsse able and 1uotuating paper circulation. II
rays arc eyer To resume, can VIC hope for n
for favorable tlmp than tho present7 Can
tho Doard representing as 1t docs tho oon'mol
px- interests Of the wlIole country, do bettor t
luds to meet this subject squareiy by doc
oull lug In favor Of spccio resumpti