, 1873-12-06

American bonthollcts, including tho banks,
wot!d generally piofor lilo gleenbaohs Oh nc-
count or convenience md tho choapnoAa OF trana"
Aanlo thing would he true, to somo ostont, with
iorclgil l'o!l,ll!olslora hocauso groonbnckH would
then ciroulnto ut lar anywhere
IN EuAOrE OFT THE WORLD,
just as is tho caso with Bank Of England notca:
A. question will naturally arise In tho minds Of
realtors, that, II tho Government thus under-
ta'cs to redeem ita notoa III chin, what uso Ia
lhuro for banlt.notes, soolng that they arc 70.
toetied III groonbacks. aud that, III practical
Oh tho Government? Why should not tic bank
nuses bo rotirod, md tho aconrity-bonds ho TO-
turned to tho banhB, who could Hel tlem to tho
lsosoru'nent for grcenbacnH, mud thon bnnk OIL
this national cstsrcucy, without fear OF ovor
being called OH to redeem their uotoH2
I confoss My inability 70 givo satisfactory 70.
ply ~ tho negative to this question:. sud. afler
turning it ovor In oyoty ielit, coucodo tho point
that tho proper policy would DO for Tho
nASE-Sori:s To III: RETIRED,
nuu KreonbackB rodoelnnblo III f.Old Issued III
their htoa1. sa long aa tho. grocnbacka remain
add to flor volume, a. tbs elreot
would inevitably. DO, to topracia:c, thom
very, m1uch moro than thoy are. Tho hroharr
BY tho ssaor II taoro wero $3.50 oo0, 900 Of llem
atloat ttan II only $3.50. .n91.UoO wero kiting
aroat'd loose, without ta'her to recognize his
poor offspring.
It il proanInabo that tho banks would nako
serious objection tU sllirenleriug their cireu-
lating notcs,-lhat Is, tho hans III the rural ts-
titcts. wlloro deposits aro comparatively light.
Tile city bauls would probably caro- worry littlo
acont 1t, as circulation yields then, but little
profit, aud, in Tho event Of resumption. might
prove q lopn. 13ut 1t would not be advisable ut
the outsct for tho Government to undertake to
redeem airy greater volume OF currency than 1t
has now nuoat Batter try that experiment first.
mud sec how it would work.
., While tho plan hero skctchcd would furnish
tho country with Eos,l,d specie currcncY having
for itH support the whole credit and etreugtA OF
tue natiUn,
IT WOULD NOT PREVENT
phnlcs md revtl1Eiona growing uut Of stock
Watering and stock-gumbling, and confldence.ln-
yostmenta in wildcat md moonahluo onter-
tcroAt OH dcpogitb botwcon banks, or interest oil
cnll-loanB, Ncl, In really tho aame thing; nor
would it prevent glut Of currency in the banis
vaults in tho dull goaaon. md atringency III
crops aro going forward, because tho quantity OF
tho currency would, Mt all Seasons of tic
year, be tho Bamo, just as 1t IL
now. Relief against tlcao evils. however,
could be given by tho Government consonting
sn 20 sxs1nso @ oos for s i ia an5
1nent would g1yo the holders Of its notes tho op-
ton Or choice to convert them into coin or 5-pcr
cent bonds, md. ut tho Ramo tinao, gave the
holders Of bonds the privilege to surrender them
in exchange for greonhacks. then there would
bo uecurcd to tho country
FLEXIBLE CURRENCY,
which would expand when ths busfnosa-nccds Of
tho country required 1t, and contract whom tl,ero
wero more notes i'll circulation than weto wanted.
THIS would bc uniting tho two paus OF currency
reform in harmonious action fortle public good.
antlit would furnlph tho American people tho most
DcrfCcE mOuctatY 4YHtHD1 pyGr nDnPrkSt1 aV Hny