The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1874-02-20
"a Plan for Resuning Specie Payment. =

| Clnclnnatl commercial, because
we consider it just about the plain
est and most practical thing we
have seen on the subject. It
comes from the pen of ct. S." a
correspondent of that paper:
Although so many plans for the
improvement of the currency and
resumption of specie payment
have been published, yet venture
to propose another which appears
to be a good one and quite prac-
ticable.
Our greenback currency is pub
lie debt without interest; in real
ity it is a loan forced from the
people during the war and only
justified by necessity. Green
backs are below par because they
do not bear interest, and no pro-
vision has been made for their re-
demption.
Now, i believe that the govern
ment should not go into the bank
ing business and derange the cur
rency of the country by issuing
irredeemable paper to save the in
terest it would otherwise have to
pay. Observe, there is a great
difference between United States
bonds bearing interest, and green
backs which bear no interest. Six
per cent. United States bonds are
worth about five per cent. more
than gold, without the interest;
and five per cent. are worth about
one half per cent. more than gold;
while greenbacks are worth ten
per cent. less.
VaIuing greenbacks at ninety
cents, and allowing interest on
them at the rate of five and one
half per cent. per annum, they
would be worth a dollar in gold
two years hence.
Now, what I propose is, that
Congress shall pass law making
greenbacks convertible into FIVE
per cent. United States gold bonds,
on and after the 1st of January,
I1S76.
| Gresnbacks would then become
j more valuable every day, until the
| time when they could purchase
u United States bonds, which are at
least on q par with gold, and OF
, course, as they rise in value, so
would the premium on gold de-
cline, until it would gradually and
almost perceptibly come down tc
par. The effect would be to retire
greenbacks, and as they are retir.
ed, banks should be permitted &c
, issue bank notes. That is, say as
100000 United States bonds
are exchanged for $4,000. 00(
greenbacks, let banks be allowed
to issue $lO,0O0,0OO bank notes
secured as at present, by United
States bonds deposited at Wash
! ington, &c.
I think that three per cent. i
Ienough interest for the United
!. States TO pay on bonds thus de
. posted, since the banks get doubl
4 interest for the same value. First
! from these bonds; second, frou
n the money issued on such bonds
and let the other two or three pc
cent. OF interest go to the Govern
ment, to compensate for the in
Icrease of interest-bearing debt oC
u casioned by the conversion of tn
;. greenbacks.
y The bank notes thus issued ma
e be redeemed at the option of th
q bank, either in gold or Unite
, States bonds, but United State
:, bonds are worth moro than gol
at present, and will continue to b
" more desirable while the Govern
?, ment is solvent; so that bank
+ will make strong efforts to hay
3 enough gold on hand to redeel
% their notes in gold when presen
le ed, rather than to do so wit
is United States bonds which woul
+. be held as reserve. This will ten
to bring gold into the country an
keep it here.
7 Furthermore, Congress will
- compelled to practice greater eco
:. omy since it cannot issue none
at pleasure to meet the Cover
~ ment expenses, but must go I'M
=, the market to. borrow like Al
other corporation. sssz....
g If the ssBoston plan" OF STAN
"a ing two million dollars per mont
AZ TO be redeemed in gold at son
: definite future time, we're adopte
70 these stamped notes would
=, boarded up, and finally the amou
- of money thus put out Of circul
% ton would be 50 great as to eau
- commercial operations to be {
- riously impeded for want OF Q Ct
~ culating medium; but by adoptil
the plan / propose, the whole "
ng ume of the currency will increa
IT in value and none win be put o
ar of circulation.
ID, Again the confidence Of {
e. people In the banks will not
he disturbed; for should they not
ar able to accumulate enough &C
il 10 redeem their notes when pl
on scented, there will not be much d
e. Aculty in procuring United Stat
rel bonds. which viii be even mo
1us valuable.
oR These suggestions ara advanc
{ 81 for the examination Of. Think
I'D. men, and If they are not open
Db- greater objections than can
the present see I hope they will,
ru- substance, be adopted.
asst s-.-e-
( & I 50