, 1873-12-30

AlhuHP l1H ulPalAtl4lb put 1oEtu III l1V0T o.
making United States grccnbaoks and bonds
inter- convertible. plain mud. to my mind, al
ul4nswerablo one sce1ns to havo been over.
lookcd. While much hns been Haid to show the
e1peaiency OF this measure, but little attention
has Icon given to its Justice wish to offer q
few considerations benring on tho Inter point
Our Government owcs o large debt consisting
principally Of bonds bearing gold intorest. THE
part Of tho debt iB In highly satisfactory con.
tition. Ample provision las beon made for the
consequently our national credit stands
very hlgh, mud , may be said to
be improving There IN, however,
another part Of our national debt Of whlcl, so
favorable All account cannot BIZ given. It is In
MI anomalous stnte 1loat1uy in the form Of sim
pla dcblnturos, for tho payment or funding Of
which no provision Whatever has been made.
Consequently, this part Ut our dobt stnrds much
toronco ut the prosont time amounting to IL or
l5 por cont. While tho funded debt ia now aboyo
tho par Of gold, tno unfunded debt stands con-
shcrably below 1t, Is thorc any mood for this,
Treasury to place all its obligations OH tho samo
footings Should not all tile creditors OF tho
Government ho treated alike2
The unfundcd debt referred to is, Of course,
the groonback currency, and good mems minds
arc very much occupied by pluna to bring it.np
TO par, so that what is called - specie payment"
may DO resumed. During tho pauio thB end
seomcd to bo rapidly approaching, but now tho
teudouoy IL in the other direction aud ii the OK
listing wants OF the Treasury aro to bo supplied
by further Issues Of groenbanks, the discount on
the latter will increase.
Suppose, however. the Treasury should be ro-
9uirea to issue per cent LolliB Tor all green-
backs presented iu Buna Of s100 OIL and aftsr
the 1st OF Jannary next7 What would bo tho
immediate eiract Certainly, this would not bo
measure Of ''iuiation." Inavnioh ns groonbacis
aro now much loss value than per oent bolltla,
considerable amount would probably DO retired
and this pl ocoss would 60 on until thu bonds md
s, cenbacks stood Oh tho same plane. II 1niglt
ho TINT such u provision would temporarily ro-
duco existing quotnttoug for s por cents, but
do not boove tho tendency in this direction
would bo very great. Tie credit Of the country
Is how 20 high, and tcouM be so much improved
BY Tie honorable 1n'ouison eohicA ,oould thus oe
made for tie floating debt TINT bonds would 10 ns
hkoly TO aarance ~ roootlo in prices. But what
ever might bo the fRct III this particular, bonds
aud greenbacks would theroaftor bs equally val
uable, mud If TINT value should bo uoAr tho par
of gold, all dinloultyin the why OF practical To-
sumption would disappear.
Thus aa it were by U mere stroke Of tie pen
tho difference between gold and grooubacks
might be wiped out, aud the credit OF tho Gov.
ernlncns placed OH much higher ground than it
now occupies But lot us consil whether iu
doing this anything woull 10 lost. 1t will
probably bn said that this would bo q measure
Of contrnction-tlnt to the extent to which
greeubacss would 20 III to bo funded. the volume
of tho currency would bo roduced. Tls, Of
COURSE. is obviously true. but uro We likely to
reach the result ao muci, desired Of giving our
curreney a gold purchasing rotrer by any casier
pretended. il It likely TINT tho temptation Of
getting por cent for 1t in tho form of bonds
would eauso any considerable quantity to be
Withdrawn? Would not tho OBJECT simply be to
advance tho value Of tho graonhacks without
senslbly decreasing tlloir volutne7 Or IT tho
volume wore reduced. would 1t not sAow TINT tho
wy OF scarcity Of currency is without fouuda-
Iionf
Up to this point 1have only considered one side
grcenbacIs into por cent bonds. do this bo-
cause wish to show that tho measure OF making
bonds and greenbacks mutually convertible Is
not, rs has been pretended, one ot imitation,
per Sc. II tho tendency at this sime of M option
to convert Greonbacks into per conts, would
bo to contract rather an to expand tho cur oncy,
would it niaae anY difference IT, at tho sumo
tlmes Inception wofo go extended US to allow per
cents to bo rcconve1tcd into greonbacks at tho
pleasure OF the holders 2 It is perfectly plain
that an option to Ieoonyort would not
operate at I'LL until all difference between
tie value Of the honda and Grcenbacks
had been absorbed in some way. Tho l1st ctfect
ct attaching the convertible opLion to tho green-
their value. Tho extent to which tho option
would be arailed of either way cnnnot ba fore
scon exactly. After the adjustment which
would soon follow tho creation OF tho new ilnau-
nithor direction would probably bo insignificant.
Whatever 1t might bo, should DO dsr!osrd by
daily fcrcrts from the Treasury in order to
chacAnlnte any attempts at corners.
have tgnosod the plan Of q currency stock
viii d5-100 ror cent interest, for tho renson
TIM at present this talo iH too low, and tho plum
Won d til 3refore DO QUO OF initiation.
=, G.sa interest at & per cont aeoms to be
the lo t rate OIL which otr Goyornmout Gun now
borrow munoy at lat. II tue gtoen,acks are to
LII Afl{ ri },Q 5,,fo
par stock. If rs par cont bunl IL worth but
100 per cert goll, 0 G5-000 por cent stock would
bring oniy = por cent gold, aud the greenbaoks
convertible lilo such II stock would, suppose,
when we hllalI be ab'o to negotiate loan ut par
bearing 05-10o ler cont interest, but that tiino
Is not now, aud TO Troasury would bo maaing
~ upfuir discrimination against Il certain por-
G6-lVo por cent whcn It pays othere per cont.
III shott, Mr. Editor, hold It right Tor tho
Government to give tho :llollera OF it's toating
aept tho opportunity Of funding It on the best
totlna 't IL noW oilorlns, viz: por cent goll
bondb II 1t cannot pay tLo principal, it ought
y: least to paey interest, when required. IT, low
ever, from tho uso OF this tloas.ng Gobt as cur
lc1cy, it is likely but little will require to be
funded. It is all tho better for slo Treasury,
and II will certainly do no larm to make tie
oTcr.
Furthor, II it hhall appear thut the poonlo
prefer noating doht. !. e., grcenhaul;s, to mar
cent bonds, SEQ no reason why :loy should not
10 G,atitied, aud would therefore attach 70 .rcyo
bonds MI option Ut being converted into gruet:-
backs ut thoir face.
BY simply adopting this plum, Tho Govern
1nont will ilayo substantially disposed Of lilo
groonbaek aul cnrronoy questions. Olro,ing
to fund ilB loaliuR dobt OIL Its bott
terms, It can III longer DO charGel with
unfair discrimination agalnst putt of its
creditors. II u Government currency
10 sLught, ne shall thon hayo ono ut par with
stock which now stands at par and will probably
yuluon, tho currency vii haYo itB Purchasing
power advanced to tie speelo standard, though
Il maY not kecbaiGaIu bo conYo1 tiLla into a1Qple