The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-11-07
The Financial Question.

cured and one equally current ia every part
az this immense country.
sut we have found that It's usefulness may
he disastrously obstructed bccSuse OF ais-
arus, and panic, and that on account Oh ns
xaluc. Men draw it from savings aud other
hanks and hoard II, thus increasing the puo-
lie suffering for the want OF the medium
through which they may collect and pay
debts
This at once presented to the public m'no
a terrible trouble. 1t has been estima'eo
upon the most reliable basis that al 'e&s1
$500, 900 Of currency was, at the time OF the
manic. Withdrawn from the savings and other
hanks Of this city, and held for seine time
in privatc places. The distress this occa-
stoned in the daily transactions OF life was
immense. Our people remember it well.
Having through the trials Of war been led
TO invent the best currency the world ever
SAW let us hope now that the trials of panic
snd the strsteses Of the bandtti OF the stock
and gold boards may also lead TO the dis
coverr of a way to obviatc panics. Various
propositions have been brought to public
observation. including national bank as
regulator of interest and commander OF re-
serves to he employed at time of exigency.
But the suggestions which most attract the
public mind at this time arc that Of the " con-
yertibllty :" pational bend and that of the
postal savings-oanks. They attract attention
for the merits claimed for them, but chiefly
because they have the approval Of the Fede-
raj Executive We have already explained
them to some extent. We noticed yesterday
some of the arguments Of Mr.. SPINNER. the
United States Treasurer, In favor of the uses
of the convertibflisy bond. We think them
SO important that we return to the subject
10 give him fuller bearing.
Mr.. SPINNER, referring to the amount Of
leeal-tender notes Row in circulstion-sS 1885,
OOO, 0o0-rcmarkst that they are loan from the
people to the Government WITHOUT interest
Should the convertibilty plan be adoped-
4. e.. the issue Of s.65 United States bonds
convertible into currency at the will OF the
holder-Nr. sP1SNRR assumes that upon an
average sll2, 900 of these bonds would
BE- held by the people, paying 1865 interest
in lieu of the greenbacks, on which no In.
terest IL paid. He proceeds:
"If the maximum of s400, G00,0 900 green
backs authorized by law should be issued. 1t
would reduce the amount 90 the difference
Of interest to he raid by "a DOC, 900, being
IN average Of S68, 900 on which interest
would have to oe paid. This at 8 65-100 per
cent would amount to $3.50, 900 per an
nuni. The whole circulation issued by the
Government, including the fractional cur
rency, would then 10 about $40, 900, 900. on
which the interest at five per cent. would be
ss2 900, 600. Dedueting the amount OF cur
rency interest thst would probably be paid
on the contemplated new bonds as aforesaid,
it would still leave over $40 ,50O, 900 as the
saving of gold interest by reason Of
this large loan by the people to the
Government, on which the latter
pays no interest. The apparent loss
of leee than S2,500.000 in currency to
the people who would bold the stock would
I've mere trif1e as compared with the great
gain That would accrue to the whole country
in consequence Of the better circulating me-
dunn that would be introduced, and which,
it is believed, would protect them in future
from corners of all kinds and from fnan-
cIal commissions like the ono that has just
now swept over the country like tornado.
This could not have happened had there
been an elastic and flexible instead Of our
present rigid and unyielding currency.
There is scarce o doubt but this financial
revolution has cost the people in the aggre-
gate hundreds Of millions Of dollars, to say
nothing Of the loss of revenue to the Gov
ernment."
Very true. The Treasurer also favors the
" convertibity bond rs an easy way to
specie payments. He says:
AN irredeemable currency, fixed as to
amount, rigid like ours, makes an uncertain
measure of commodities, while 4 circulating
medium that is elastic, with gold for the |
standard, insures one that is more uniform
and equitable for both buyer and seller. |
Besides, resumption would not necessarily
reduce the volume Of paper money, but it
would certainly increase the aggregate cir
culation of the country by the amount Of
gold and silver coin that would thereby be |
added to it. Expansion rather than contrao- |
ton would be much lkelier consequence |
AS the result Of the. resumption Of specie |
payments. Should, however, the maximum |
Of legal-tender notes authorized by law be |
found to be inadequte and insufficient to /
prevent the brigands and banditti who infest |
our money marts, and who at times conspire !
against the public veal by lock-ups,' making |
money scarce when most needed for bust !
ness purposes, thereby robbing whole COM
70 enrich themselves, the Secretary |
Of the Treasury might be authorized by law |
in such case, or at any other time when |
the exigencies Of the Treasury may require |
the same, to issue an additional limited |!
amount Of such convertible legal-tender |
notes in exchange for auy United States six |
per cent. stocks, allowing on, and passing on |
such six per cent. stocks on such exchange,
the average price borne by them on actual |
sales thereof IN the open stock market In !
the city Of New York. for the three business
days next preceding such purchase and ex-
change. Should this become necessary, and
be done, the saving of interest on the six
per cent. bonds would probably more than
equal the interest that would be paid on the |
new bonds into which legal-tender notes are
to be made convertible, as hereinbefore pro-
posed, thus not only making the interest on
the public debt less than would otherwise |
he paid, but making part Of 1t payable in |
currency to our own people at hsme, instead |
OF in gold to foreigners abroad"
Certainly this is very sound and very SEN
sibc, and if it be based on solid ground we
may consider 1t very good remedy for
much of the evil we have suffered.
And now as to the postal ssyings-bank:
This proposed institution presents most
important subject for consideration. At the
threshold we see that it immensely increases
the power of the Executive Department of