, 1873-02-27

disposed to advise Congress wha: it should do to
requisite the currency. The plan which the
Legislature seems disposed to advise is that
any gold-interest- bearing bonds Of the United
States shall be e1changcable into greenbacks at
The option OF the holder, and that the came
may be re-exchanged into bonds when the
depositor at the bond shall demand the reissue
of the bonds 80 retired; provided, however, that
che .mountof Greenbacks outstanding shall at
no time exceed the aggregate OF $A00, ,0Do, 900.
The real effect Of such q measure, il it became
Glaw, would be to authorize an imitation to the
extent of e44, ,o0o, 900 OF greenbacks when peo-
ole were willing to pay 81 per cent for the priv
aese Of having their capital in the shape ct
greenbacks instead OF honda The objection to
the, scheme is, that it gives bondholders the
privilege to convert into currency and reconvert
into bonds when they please, while the holders
OF gzeenbacks now outstanding would not hare
Che privilege Of converting into bonds. Thatits
effect would be inflation may be eeen from the
nacts that while it would provide that the volume
ofgEeenbacks might be as great as 500, ,000, ,000
1t prevents it's being any less than the present
S956, ,000, 900. It would efectually prevent any
contraction Of the present volume OF greenbacky,
and for that reason is directly opposed to any
movement toward specie resumption; contrac-
Slon OF the: greenback currency, and probably
also would be the inevitable result Of a resump-
tloo OF specie payments. This would be neces-
sary to make room for The gold and silver that
would Come into circulation in consequence Of
Epecta tedemptions, and, if this contraction is
prevented; specie payments could not be main
talrea.
4 BOSTON VIEW OF THE CURRENCY QUESTION.
.The continued striQgency of money in the
Eastern cities has set the business community
generally to thinking about the causes and tho
cure. IN the common misconception that an in
crease Of irredeemable paper currency would be
1t1uFn oil
for relief are directed to tinkering at the cur
1enoy. The President Of the Boston Board OF
Trade has 1ecently published plan Of REFORM
ing tho currency which shows more Intelligent
view: OF the situation than the great mass Of the
khonsand-and-one plans that are proposed He
says what il undoubtedly true:
There too Hnuy grcenbacks adoat and too many
f6e germ q ths ntscdief Re would esh Ia i've millions
month Of greenbacks and be would issue N their
he -. % en- 5 ssed e s
amount Of all the coin and bulion In the Treasury,
snd f9r 20 cent beyond For further Issues there
nd law, and they would be at variance with Bou0d
i poncy.
We do not agree, however, with Mr. Ropes,
That the National Banks should be compelled to
redeem their notes in New Io1k City. Ihe
claim Of New York City. that it is the financial
centre, and that, consequently, all tho National
Banks should be compelled to redeem their
notes there, iB an arrogant one, and is favored
In New YORK. because It would compel the Ma
fact that exchange is in favor Of Chicago aud
against New York for as great portion Of the
year as it is in favor OF New York, shows that
Chicago is in fact ns Convenient point for tho
redemption of National Bank currency [issued in
soZ state) as New York.
=. EXCHANGING 5-20s FOB s PER cEsrs
At tue present prices Of gold and OF United
States bonds, the new 8 per cents are selling at
931 in gold, while the 5-20s Of 1864 and the old
o~2Ds Of 1865 are selling at 98 in gold. II the
new bonds are bought at present prices and held
re years. and are then salable at par in gold, the
Investment will have yielded 81 per cent per an
num- II the 5-20s OF 1865 are bought ct present
prices, and at the end Of five years arc redeemed
at par IN gold, in five years the investment will
have yielded At tho rate Of $40 per cent per an
num- The difference in the annual yield from
the tTo Investments is 80 great that banks that
voluntarily make tho exchange must calculate
that the new per cents will be worth los in
gold, at the end Of the five years. to justify the
exchange.
LOCAL srocK AND BOND atAREEr.
Messrs. Lunt, Preston j. koan quote as fol-