New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-27
FINANOIAL PROBLEMS.
CURRENCY AND BONDS.


A PLAN FOR USING CURRENCY-CoNvERTIDLE BONDS.
TO me EditOr Of The Tribune.
SIR: The suggestion that the Government
shall supply, through tho medium OF currencyc0n-
vertbe bond increased paper money facilities TO meet
tue increased increasing business exchanges Of the
country Sos been received if mistake not the temper
Of the pu6lie with some unannity OF assent, and
this. too. without any very practical plan having peeh
presented for the fulallmen' Of such scheme. Dis
missing discussion TO the desrablT OF Ihe pfoiec'
and assuming that It is the intention Congress to
adopt tho suggestion in form, permit ma To sug
gest the fOllOwing
o. Congress shall authorize an issue OF S. 100000
OF currency bonds having fifty years TO rum
bearing interest at tho Of four per ceat per annun
In currency-the bonds payable at the option of the
Government, az any time after fifteen years. In coin
the bonds registered with coupons att9chod, pay
able quarterly the LIST days OF December, March
June, and September; these bonds TO DO furnished at
par in exchange for any Of tho present outstanding
bonds Of the Government, AT such equitable rate as VIII
induce an exchange the outstanding bonds may be
purchased by the Government with the currency TO be
created and when they purchased and Cancelled tho
Government shall substitute therefor tho
yertiblc bonds.
g. Congress shall also authorize Issue OF 900
" grcenbacks, which shall be exchanceaDle on any
quarter-day for like amount OF currency-eonyertble
bonds at tho option OF the holer and rice pesa the
quarterday thereafter exchange currencyconyertibe
bonds for currency.
81 Congress shall repeal so much Of tho present
Banking law permits tho national banks TO be banks
Of issue. and shall require them % make direct ex-
change Of currency the banks receiving in return their
bonds now held 40 security for circulation.
a. Congress shall Nt the line provide for re-
of two per cent annually Of the entire issue OF
eurrcncyc0nyeriDc bonds in gold coin. the ultimate
redemption Of tho bonds, ana SHAH
hold in allegiance two per cent OF the issue represented
hy the accumulation OF cnn and whenever the amount
Of coin thus accumulated snail justify its exchange upon
demand for currency the resumption or suCl exchange
shan be commenced.
To be BRIEF is this plan feasblef Is the amount OF
sufficient VIII not the rate Of interest be
sufficient indictment for the retirement of currency
voluntarily the banks and people, when there Is too
much for business wants; and is the rate
not low enough 10 insure the taking
out OF currency for bonds when there is scarcity The
exchange OF bonds for currency and currency for bonds
being regulated iOr QuTterdays will oDylate any frac
tOna payment OF interest, and the know ledge that
upon quartcTdays additional currency at all times
DE had wi think, prevent senseess panics With tho
retirement OF the national bank issue this plan viii
effect increase OF the currency TO the extent OF about
$3.50 Oo0oOo provided the demand Tor circulation shall
call for 10 al, which, with the Government thus paying
four per cent call, Is scarcely probable except IN
times OF panic BELLEFOSIE.
Neg lOFt, Nov. %, 1873