, 1874-02-10

can It DO national in its credit. All elso TINT s
good In tho plan Of our present national currency
was borrowed from tho New York system. 1t il
not hoped to do more here than to better some
of tho details Of that plan.
Without further preface, and without crlticig-
Ing other devices for tho correction Of our nreB-
Hent monetary difficulties, will now aat forth
my own.
ExcHAEoEAnIE FOR GOVERNMENT BoNDs,
or, perhaps better, for perpetual annuitioB, at
the best ratio that Congress- may Judge to bo poB-
siblo. A per cent rate Of interest, OF corro-
sgonding annuity, possessing, the advantages
which 1t ia here proposed to givo these securi-
ties, would, probably, bo now practicable. and,
perhaps. even d lower rate. Tho offered rato
could, Of COURSE bo changed for a lower whon-
ever found possible. Let tho holders Of all
classea Of qoyornmont-bonds now out be en-
titled to oxchango thom for bonds or annuities OF
this sane sort, and carrying the same following
privilege, viz:
Let the holders, on dopositiug them with tho
Comptroller Of the Currency, or other deBignat-
cd public functionary, in the amount OF not lesH
than s100, 600 OF other oxpoaeut Hum, DO enti-
tied to receive thorefrom for issue and circ,lla-
tion 7b per cent Cor, perhaps, SOY Of their par
valuo In
CURRENCY NOTES
from tho Printing Bureau OF tho Government,
Of the individual or corporation that receiyoH
them.
Let these notes On their face be made payable
Oh delnand at par in specie by the bankers that
receive and Issue them not only at their col1u-
Alaska, but also Ut some designated agency IN IN
tho ncarestof tho great commercial centres Of
tho countrJ-New York, Chicago Cincinnati,
Boston, Now Orleans.
Thus far I follow, substantially, the Now
York freo-bnnking system. But, it these notea
aro not redeemed,
WHAT r,igS2
70 meet this always possible emergency, no bet
ter way has been thus fur devised ti,an to throw
tho defaultlng banker into bankruptcy at tho
first default, and close up the businoss, sending
all his currency to his treasury for redemption.
This ia, in substance, the New York method and
cur present National method. Tho result has
beon, and on that plan must always be, that
every now and then comes general suspension
Of specie- payments BY banks, without Or with
the special authorization or condonement Of
Legislatures, md involving widespread dis
turbance Of business and bankruptcy amoug the
people. This rigid rule not only makes bankine
pfecariouc. but, therefore, necessarily mikes
banking accommodations always dear, nike to
the great damage Of capital and the hlndranco Of
industry.
This Injurious defect of that othorwfso nd
mirable system propose to correct in tho fol-
lowing mannor
Whenever. any part Of The issues Of National
Bank, as here propided for shall be refused re-
de'nplion, either at its oton counter or b. its a-
pointed agent in some commercial ce7te lei il BE-
sent 10 the Bureau Of the Treasury Nat holds lis
pledged securities, and let enough Of them, AND NO
aoAE' oe sotd TO ....-.-
AEpEEM THE pEFAuLrED PAPER
and to ptty the reosonGble expenses aud costs of
ne defauA, and lei the business Of the bank 90 or
This il my deyice for making specie-paynlcnt far
easier for banks, and therefore moro certain for
thoso VINO hold their notes, than it llas hereto
iore boon made. claim patont for the con-
would, moreover tempor tho despotism even
OF thts rule by providing Il thRt When tho sell-
ing price at auction OF these pledged obligations
OF lhe Government should full below, say 30
por, cent Of par their further eale and the
further redemption Of the defaultod paper
should be postponed for thirty days in tho in
stance alike Of tho banker aud Of financial
etoad1nosa. Such delay, thus provided for by
law, and therefore matter OF casy anticipation,
could never, 1t IL beloved, work Beriou6 injury
ore or embarrassment to the 9 holders OF the di4hon-
orsd notoa, would tend to moderate the violence
Of panies, and would at tho same time greatly
choapen and dtaombarrass the usoful functions
~ nauhi!'k, ~ ID W ue 1oHempefca that what
III heeaea ls not 30 mueh INC instans,
AZ ~ TIE oEArAaE r,.
woni rive me Tho re-
Moila 20 come 70 .no a. reaouo Oh any transient
emnAtrGssmant OF our anailcln III cohdltlon.
l would also provide ~ thot, whonover. after
~ aoose aetay, tls hsltnE Willis ~ auotaon OF
tAGaa stocka shoula 1ail below Inc percentage at
which tue doYornmons haa made fncm basls
1or sno lssuo o. currency TO banaers, their sale
enoui9 80 On nat that tnat oeAcleucy OF price
shou1a 10
MADE ur nY aoyEnNAEsT 1TsE1F,
aud q, not by the delaultlng bank,-shus making
ne dovoramont tho gnnrantor to tho banker Of
,ho vhlne o. It's ponus TO ttlc extent to which it
ARa made them basis Tor tho iaauo OF currency.
rer c9ntrat 1t snould pc @ ordored r. ~ atitn-
ul''a Y! to due preparation for tue redemption Of
thelt paper, tuAt pahReIe snoulo aot 20 anoWed
to put again upon the market, BY tho deposit Of
nov bolldB, thelr a,snonofea notee.
specso'paynlens ny oahka. thns secured, could
fall only when the credit Of tue nation should
(all, aud III the presence OF those great convul-
1ions which put aii provision AMI provision at
Defiance When this happens, all, credits layo