Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-12-06


still further capable of definition, and
means unconditional resumption OF |
specie payments. Congress may rest as
sured that If it do not proceed d.
rectly to that end, the country VIII be
filed with disgust at it's imbecihty.
1t has, however, but one alter
native, and that is the act of creating
an artificial elasticity for the mschlev-
GUS substitute with which we have SO
long been forced to content ourselves.
Two modes have been suggested, by
which to accomplish this. They are
opposites of each other. The one IS to
diminish the present volume of curren-
CIV whenever it becomes too large Tor
the purpose of exchange. This scheme
is familiar to all. 1t proposes
that the Government hold for sale
an. amount of convertible and recon
vertible bonds, bearing interest at some
such low rate as 3.65 per cent. When
ever money should become SO plentiful
as to be worth less than that rate, IN
would begin to be invested In those
bonds. and thus soon be diminished to
a volume suited to the requirements OF
trade. Whenever it should become too
scarce again, its volume could easily be
increased by redeeming those bonds.
This scheme has met with much favor,
and in theory it is a good one. The
opposite scheme is not so familiar. 1t
first found its way into print, we be-
heve, through the Presidents message.
This scheme proposes to increase the
present volume of currency, whenever
it becomes too scarce for business pur-
poses. 1t would give the banks power
to acquire from the United States
Treasury as much currency within
certain limits as they want, by paying
to the Government four per cent. in
terest for all they thus draw. The
President suggests that the banks be
allowed to increase their circulation IN
this way only forty per cent. He pre-
fers this plan to the convertible bond
plan, for the reason that the latter
plan would extort from the Gov
eminent a variable amount OF money
in the shape of interest, without any
compensation whatever-a very valid
objection. The President bluntly ac.
knowledges his total ignorance of the
subject, however, by subjoining to bis
own plan the following ridiculous re-
mark: Il have not reflected enough
on the bearings this might have
to give it my positive recommendation.
His objection to the convertible bono
scheme is a good one. 1t was not orig
inal with him however. He had see1
it dimly through his tobacco fumes IL
some newspaper, and could have truly
, observed that CHOW we see through {
smoke darby" His objectionh has beel
answered by credit fanatic by observ
inc that the Government is for tn
: benefit Of the governed, and If 1t shoul'
, paw out any amount of interest to Sc
cure elasticity it would all be for tn
benefit of the goUerned. The fallacy Q
this is exposed by uncovering the tru
nature of the transaction. 1t is tina
] the Government should pay to certal
, individuals probably a million do
lars in order to secure elastic
lty-not from those benefited IL
{ dividuals-but from circumstances.
that ''business?" How much the Gov
eminent would thus pay to individuals
would depend altogether on the amour
of the excess of current nores above tn
/ actual requirements of business.
would be in the power of Congress
make that excess as great as their ca
prices or corruption could suggest, an
thus tofoster the most gigantic swindle
that the world ever knew. Therefor
to people of virtue and intelligence
the increase of power which this sort O
elasticity" would give to Congress
cannot but smell Of the rotte1
despotism which rendered the old Ro
man Senate a contemplate and repul
sive thing in the eyes Of all freemen
The Presidents scheme is even worse
The other would steal away the power
of the people and centre them in tn
government. His plan would comm
the meaner larceny of investing thos
powers in the bankers. In the same
message does he not urge upon Con
gress to prohibit the banks from accu
mulating capital by paying interest IL
the dull seasons? Does he not
say that this practice of pay
ing interest on deposits, fosters thu
deplorable Safeguarding of Wal
street? Aud yet he would give to thu
banks the power of obtaining as much
currency as they want from the gov
eminent by paying for it the paltry in
terest of four per cent. Would this
not foster the gambling of Wall street,
Would it not create ten thousand Wal
streets? Would it not be "a destruction
of the liberty of the people? 1t
is abundantly evident that he
had not reflected enough OF
the bearing which this scheme might
have. No attempt to create an artiicia
elasticity will satisfy the American PEG
lie. To escape the odium, which il
would Justly merit, Congress must dc
nothing but carry out its oft repeated
pledge to give to the nation a medium
which is convertible into specie. at the
option of the holder. This obtained
elasticity is obtained, and the nations
greatest longing satisfied.
The Philadelphia Age states that