The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1874-12-23
Peter and Paul.

We believe the point is well taken
and therefore give it place in our
columns
The news from Washington is that
the utterance in the message and Sec.
retary's report on specie resumption
were not meaningless words. A strong
pressure is said to have been brought
TO bear IN the Senate and with some
success, to make move to give effect
to the suggestions offered. Our readers
will remember thatin commenting on
the message the day after it was deliv-
cred, we stated that it meant, Borrow
gold with which to resume. This proves
to be the plan, JUS as we anticipated.
Senator Frelinghuysen, Of New Jersey
first put it forward, last winter; and
now some nameless persons of the Ex.
ecutive Council of the National Board
of Trade,-a large name With nothing
it it--offer a plan to the Committee on
Banking and Commerce that erubodies
this identical idea. II is, in brief, to
borrow $500, 100000 in gold, st four
and four and one-half pet cent. inter-
est, redeem and destroy greenbacks
and then give full swing to The Nation
al Banks to issue notes. In other
words, we are to borrow S400, 900, 900
in Europe to pay 1882 100000 at
home-borrow of Peter to pay Paul.
One third of this loan is to be received
in greenbacks, which are to be de-
stroyed hence weAget really 1866.
666,666 of gold, anG reduce. at the
same time, our greenback circulation,
and S133, ,333, ,33S, in greenbacks. A
ak months squeeze is allowed to cred.
itors, provided the act is put into effect
at once, but this may or may not be
serious, according to circumstances.
The important fact is, that we will
get S267 900, ,000for s400, 900 900 debt.
Putting aside. here, the expedieucy
Of this plan, as regards retiring green
backs we have the question, is il pos
sible? Can we go into the markets of
Europe, borrow the gold, and keep it
heref If we can, the serious obiec-
tion to the plan is put aside, although
the fact will remain that we will be
disturbingthe currency Of the counry
to very little purpose. This interest
on the sum mentioned will be S17 ,OO0,-
600 apnually, which is the sum we will
pay for thirty years, for the privilege
ofsubstitpting S3S2,000,000 national
bank notes for that number of green
backs. In the aggregate, therefore, We
will pay S510,000,000 for the advan-
tage of being rid of greenbacks, say five
years earlier than we might otherwise
be rid of them for sething: OF course
$4,000, 900 is mere bagatelle to this
country, yet is it not worth while to
pause aud see whether we will get much
for it? Let US admit then, that Eu-
rope will strain every nerve to accom-
modate us in this loan,-as she un-
doubtedly will,-and see how it will
work.
There are, in round numbers, about
S600,000,000 of gold in the world.
About $3.50, 100000 was used. in the
Franco.German indemnity. That is,
France would drain England to pay
each indemnity of $200,000,000. The
last transactions were chiefly paper,-
but circuit of $3.50, 900, 900 at most,
did the entire business. SO with this
proposed law It would be made in
instalments.-say S50,000,000 at
time,-and the entire loan would re.
quire at least two years to consnmmate.
With the many methods at the dispo-
sal of the European financiers, for
drawing gold back to Europe, we can
not, of course, tell just what may be
resorted to to prevent large amount
coming to this country,-but let us in
dicate one that can be successfully
operated. European capitalists hold
our bonds, which command gold. They
sell them in our markets, and thus
accumulate all the gold available for
the loan. Thus as the Treasury paws
out gold,-and this it will steadily do.
this is caught up by these capitalists,
and made to flow back ms a loan,
Thus, at most, S100,000,00O will be
made to cover the entire loan. Indeed
1t must do it,-for the simple reason
that Europe cannot sell and actually
export $500, 100000 in gold,-it has
not the power to do It without a panic.
And by means of our bonds, held
abroad, Europe could in a year, draw
all the gold back again, and leave us
helpless with our gold debt. She
would do enough Of this to keep us at
her mercy
But let us admit what would not be |
realized THAT we get the s267 900 900 |
of gold, and no disturbing influence
developed. 1t would increase our gen.
eral interest, to be paid abroad in gold,
TO SIT 100000. Now, with s60.0OO,. !
600 of interest we export S3S,000,0OO, |