New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-01-19
PAPER MONEY WITH A SOLID BASIS.

MEN WHO ARE NOT CAPTTALIsFs-rIiR GOLD FIVE
PER CENT BONDS AN AVAILABLE SUBSTITUTE FOR
sPECR STANDARD.
To the EdttOr Of The Trtouns.
SIR: Gen. Grant has been made to believe we need
An elastic currency. Gen Butler thinks too; so
does judge Kelley; do we. BY an elastic cur
rency is meant moro money at one time OF inc year
than another That is to say, when the corn crop 10
taken of in Illinois, Chicago people need money 10
90 and buy it, that they may ship II oastwafn'
And whom tho cotton crop ia gathered and put INTO
bales buyers for tho North and for Europe need
money in Savannah and in New-OrlCans TO pay Tor
IT, The money in general circulation at these points
ia insufficient for thla purpose The aud cotton
buyers need an extra supply. This is the point
where the elasticity comes in. But elasticity Is,
strictly speaking, misnOmer. we really DO not
want to stretch anything. What ID wanted at those
periods is more money. Now how can 1T be got and
how paid forl Gen. Grant and Cen Butler ana
Judge Kelley say. by taking bonds of the United
States and carrying them to the Sub-Treasures III
New Orleans. in Chicago, in Savannah ana
elsewhere, and getting greenDackS ior
them But what enterprising buyer OF
corn IN Illinois or cotton in Georgia. be he native
merchant or purchaser from abroad. goes with his
pocket stuffed with United States bonds to raise
exceptional man. the capitalist. He is a man who
can take care of himself He is not in need of any
body's help He does not require legislation to buy
anything IN any market. You may Withdraw from
circulation every dollar in paper money you may
destroy every bank note in existence and you DO
not curtaIi his resources in the least lo Will brng
his hard money, and thaak you for destroying all
competition. He is the last man for whom you
should legiSlate The men to be aided arc the great
body OF trading men in the country who are not
capitalists thrifty, honest enterpriSng. Intelligent
who watch the markets. watch the crops. take
qmcL advantage of the situation. arc wlde-awake !;
the men, IN "A word. who move the world, and are
entitled by virtue Of their capacity to full share IN
the worlds business How are thesemon going to get
United States bonds, preliminary proceeding to
getting tho necessary money to make their pdr-
chasesl They cant do it, What can they do
They can buy their corn buy their cotton.
order 1T by rail or by ship to It's destination in some
distant market and offer their drafts on their con-
sgnecs in those markets to pay for their purchases.
And that all they have TO Offer. Their characters
are good their recommendations are good, their con-
signees ere good the ships they charter are good,
their insurers are good; all the bases of their opera
tons are found heaIthfu and legitimate. What
they want is money for their drafts Who viii fur
nish it Not the ub-rreasIry. That does not bank.
The Government will not give greenbacks, or bonds,
or anything at all for buShe of their draits Now
what il wanted Il is plain to be seen exactly what
il wanted Ii is banking Institutions to do tins
necessary work. Banks of issue that pay out
their notes for circulation and base their redemption
on the property purchased and sent to market by
means of this issue. Now we DO not want anything
of the Government IN the way of an elastic eur
rency" but the privilege of establishing such BANKS
wherever and whenever tho demands of trade and
commerce shall require them. Give some sort of
a solid standard of value and free banking aud we
have got all the elasticity and supply of money
either necessary or legitimate. That 3 simple
proposition, plain self-eydent proposition that 1t
would seem Congressman might understand.
But the standard of value. ~Ay here's the rub. We
ouqht to have a specie standard gold If possible by
all means But in the present demoralized state of
the public mind the currency question, if we can
not get that ia anything else practicable as sub
stitute to float MS on to solid groundf L am
inclined to think there 49, And that substitute Is the
five per cent gold bonds Of the United States We
would compel the banks and the Treasury 20 redeem
their circulating notes gold five per cents or their
equivalent. People say we cannot pay gold. because
there is not gold enough. Well. if we cannot pay
gold. let rs try paying in paper. Here is paper
standard of which there exists hundreds and CON
tingently, even thousands oil millions why can we
not pay in that The banks can pay i'll IT unless
they are bankrupt. The Government can pay III 1t,
anyhow. Why not. then. get ont of the slough of
rredeemable paper money Let the Government
pay its greenbacks in bonds. if any body wants
them: and compel the banks to redeem their notes
in the same security. when their legal tenders give
ont With this scheme adopted. we can establish
free banking, and so get at the much talked of
elastic currency in legitimate manner. IL is
paper money device with a solid basis There is not
an argument on the side of initiation that be used
against it that does lind its ultimate root III the
proposition hatinsolvency is better than solvency,
and that not redeemng your promises at all is better
than fulfilling them.
Now if the country requires the existing quantity
OF paper money or needs additions to it. here is
simple test of the truth of the first part of the
proposition and simple plan to supply all its wants.
But | protest against the right of any man, or any
coteTie Of any Secretary, or any Congress, or any
party to determine how much or how little paper
money should be issued. IL should he left To the
laws of trade working under some equal system Of
redemption, and some fixed standard of value,
equivalent. at least approximatng to the uniyer
sal standard.
/ Let Congress then abandon its artificial schemes
and honestly and earnestly try TO discover If there
be not some way ont of our dilemma beside the
stupid ana delusve plan Of 1856, mutually converti-
bic bonds and notes. This means imitation pure aud
simple and for reasons given above is totally in-
adequate to the demands of the trade and commerce
OF the country, J. $. r.
Philadelphia. Jan. II. 1874