, 1873-12-07
Tho Tirst: Government. .Redclnrtlon Of
Grccllbncls III Coin, Bonds Bciug
Sold to Raise tho Gold.
Tho Second: Intcrconvcrtlbfiit
Of Grcenbnclls nrd Bonds.
How Proper currcncy-Rotcrm Would Furnish
Us Tho Most fcrfcct Monetary System
Ever Posscss1d BY hny
- Nation.

TO no Eonofhl aeHtro tOr Io8tl1npt1o1 VI ePco1o
payments, or tho adoption Of Some plan wloroby
papor-money may 10 made cqual to gold III pnr-
chasing powor, a,ll kopt tlcro In FUTURE Low
this IL to 10 accomplished Is tho problem that |
puzzles tho wlse llcads, and cauaes Hucli Ill i'll
luilo variety Of rlanH aud opinions. LILO
problem would bccon,e very sinaplo mud cnsy
ono II tho people and politicians weto willing
thu. tho Government should
EErinE ITs onEESnAcKs,
and leave to private capital tho TASK OF furnish
ing gold aud convertible curroncy. II Con-
grc.s should onact this wintor tl,at greenbacha
Bhall bo converted into per cont bonda, or
even into per ces,tu, thoy would speedily disap-
year from circulation, anl bauk-notos would ut
onco riso In value to the gold standard. Silver
would como into circulation aa small change,
anl notcs aud gold DO thereafter Of equal p'1r-
chasing power,-at least go long aa tho ba''kH
wero able to redeem tllor issuos, aud that would
bo always, wien there was no financial panlo OF
sudden cali for largo amounts OF coin. 4
heavy, sudden demand Oh @ fow New York
banks would probably force t1er suspension,
Jus. AZ loavy run by dopositors might exhaust
their cash-means. This
WOULD rnoDucE A TANG,
det sroy confidence, md cause both notc.holdcrs
nt,.l dopositors to make a ruin Oh other Now York
bn,;ks, forcing them into suspension. Then the
panic would spread nil over tho Union, and closo
up a1l the banks just as Tho Into panic among
Now York dcpoeitors forced all tic banks in tho
Union into suspension, Or INTO position where
they Ind to cease lending money and accom-
mudatiug the public Bat, after tile panic, tho
ba1.ks would again generally rosume spccio ray
mcnts in moro or less crippled oond-
tion, aud 80 continue until tue next
pauic or convulaton in monotary 1nntteFa. Such
was tho Fast experience OF srecic-paytng bat,ks
aud such Will 10 tho future, as like CAUSES pro-
duce Iiso effects No bunk can bo prepared to
Withstand double ''ran OF notc-holdcrs and
deposi.olu. unless It keeps in its vaults coin
nearly cqusl to its notos in circulation: aud ro~
tans ita deposits iustead Of loaning them out;
lu other words, it must stand Idle, and not loan
either notes or dcpuuta on timo-paper. Tho
ONLY ABSOLUTELY SAFE nASK
is OF that class which issues no notes, md londa
only Its own capital and loans no de-
posits except Oh call, secured by cou-
yertib1e stocks such rs Federal bonds. but
tho business casBes would hardly bo satisfied
With that description of banking. In consider
iny tho question of resumption, NO must not
slut our eyes to tho experience Of tho past, or
suppose that repetition Of any old policy will
net yield repetition Of old experience.
For ono reason or another tho general public
arc
NOT III FAVOR or nAS1suIHo nnEESDAcEs
from circulation, but desire md inieud to retain
theyn. NJ hill will pnsB tho next Congress. nor
the next, retiring tho popular grecnbacka from
tic money OF account aud whatever plan may
bo devised for tho improvement aud stability
OF the currency, 1t must Include tho rc.c1'-
tion and continuation Of tho legal.tender4
a!lall not stop 10 a.yuo this assertion, OF a1luco
rcasons for thinking 30, or conlba: objections
thereto, bccauAo it ID uso|ops and unneccssary.
It ia needless to waste words on tho lnoF-
itablo, Tho grcenbackB arc as certain to renait'
in circulation for yoarH to como as tint Tho MG.
Bissippi livor will continue to flow to tie uca.
II eYnry member OF Congress Wag convinced lu
Lis mimi that grocnbacks should DO funded into
bonds aud retired, they dare not enact lnW do.
ing it, no long rs tho masses have not perceived
the Wlsdom. advantage, and oxpodlency Of tic
act. Congress will only daro to run, coun.
ter to public orlp'on ~ salary;graHsa ano =
quito coraia that they regret having 'erabbod
eitl4cr forward Or backward, and will not bo cpl
to repeat 1t. durinf. this generation at loast
assume, therefore, TINT the grce.~-.saa ART
destined to re1nnin i'll circulation ior
4 CONSIDERABLY: TIME LONGER,
for Tho simple reason tint tic faln,eyB are op
posoa to having them retired from circulation
that the mechanics arc opposed to It; TINT TIL
sboserB arc opposed to II that Naonsi ban
els aud railroai-co,upauies do not advocate
III; therefore, tho politicians. in aud out O
Congroas, will oppose the ,noaaurn; 10 tlc,
is 10 usa IN at$ning te matter further
Btatcsmansllp consists iu deaIing With lnen an
thlugs US they are. and making iho beGt Of th
'aituution
Tho problem may bo stated thus: Give
Gl00 600 U3u Of lcGAl-tenlar notes {iucluliI
fractional nates), aud 2j51, ,00O. QUO of bauk
notes rcdeemablo iu leSal-ts,tlsrH, 10 reaunl
spece payments without retiring the losa
tenders.
There have ncvor boon but
TWO PRACTICAL METHODS
Of solving the proOlo1n prop0Hed. Tho first |
That advocated By tho Into llusace Greeley, viz.
Tor the Government to redeem tho grce'lbncl
.nd, n order to fortify isolf to that end. to &c
bouls for gold aa fast as coin was called fo
Tho second method III that advocated in III
CulcAoo Tn1husE noveral years ago,, via: t
mand 1t tho holder, and bonds convertible int
gteeulacSa Ut tho salho option. by tho fiji
method, tho whole volume of tue current
would bo elevated to tho lesel Of gold, a.,d hol
thore steadily 50 LONG as ~. tho J., dovernmel @
BY tho second plun, the greenbackh aud nlso Il
bank-uotcs, would he ralscd to tho
E1ACr MAIXET-yALUE
ot tar,or tho Federal ss oxo,nso,ns o9,as INTO "1''
would alao ho ii lilo lonau boro premium
Tho market. TO would tho .greunbseaA, but II
tho bauk-notcn, as tho barEs have tho option
redeo1a them ii gald or logal-ton'!e.s; aud,
the bonds cold lolow par, 80 would tue losu
tenders aud bauk-notes DO worth that much lc
than par.
II tho bonds Holcotcd for tlia convertible pu
pose wora por cont gold l'onda, such az Il
l0-10J, t!oy would cloyuto tllo greonhacks to
@lU8, ns t!,oy !a,a lcen regularly te!!!ng &
TINT price iu the mul,uy-nlalGo's Of Europe ri
America for some yea'H past; md tho lata pan
aud present seflo.,A .doncaaou in tho aolllr
p,ice OF vi! stocks and niosehaulisa seon not
Layo porcoptibIy aliectod them; but, in tho fa
Of tic orihn, when everything oso wss III.
bling heaalopg. the 8 per cents (aM ter ceut
could bo ROT for them at any iaonlent u Ne
York, London, para, Frankfort, or nerliu, .
noat at their faoo; whilo tho GU U por co
bc ,jnloulk to conceive soycres toHt Of thu
wnrtlI and stability. 1t may, then, RafUly