The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1874-12-10
. INTERcONvERTuBLE BONDS"

ID. Kelley republican intationist from
Pennsylvania, introduced bill providing
Tor the issue Of an "inter convertible bond
bearing interest at the rate of three and
aixty-hve one hundredth per cent. per an
mum. The bill provided, in substance,
that the amount of United States notes IN
circulation be limited to four hundred mil
lions of dollars except as hereinafter
provided !" that any holder of said notes
presenting fifty dollars, or any multiple
thereof, to the treasurer or any assistant
treasurer of the United States should re-
ceve an equal amount Of said bonds that
said bonds should be redeemed in treasury
notes on presentation that fifty millions
Of dollars of " grcenbacks should be pre-
pared with which 10 form redemption
fund for said bonds and to be used only for
that purpose; that if the reverse is dimin-
ished--as it will be seen it necessarily must
be" it shall be placed again in reverse
out of any United States notes, not other
wise appropriated, received by the treasury
thereafter :" that the whole amount re-
ccived for said bonds shall he appropriated
and applied Z" as rapidly us practicable .
for purchasing and redeeming of bonds of
the United States " outstanding at the pas
sage OF tho act" or Tor the purchase Of
gold for tho same purpose.
Such, MS we understand it. is the sur
stance Of the bill now beng considered Ivy
congress. 1t needs no laborcd argument
to show t,at it is in terms and intent a
simple m Assure of initiation. Its practical
effect wo lid be to incrc =, the volume of
treasury notes sin collation." one eighth,
50 that instead Of the limitation of four
hundred II llions Of ,ollars-which year
or less ago added .ory-four millions of
dollars to onr irredeemable currency-the
amount goes up, either at once or with
steady and rapid strides, to four hundred
and fifty millions Of dollars. This is APP
parent from the fact that provision is made
for tho issue Of fifty millions additional
currency to redeem the bonds and at the
same time providing that all currency re-
ceived in purchase Of said bonds shall be
paid out las rapidly as practicable" for
the purchase of ether government bonds
or for gold to be used for the same purpose.
1t il, moreover, difficult to see how the
treasury notes can be retained at four hun
bred and fifty millions of dollars, if these
new bonds should ever be in demand-if
they are not TO be in demand, it is, of
course, waste of time on the part of con-
gress to discuss the proposed measure. The
bill says that all these bonds, which are I'M
limited in amount, shall be redeemed on
presentation in treasury notes, and that
these treasury notes, SO received, shall be
''as rapidly as practicable" put in circula-
lion again by being used for the purchase
of other bonds or gold. Where, then, is
the additional reverse fund to come from
unless ii be by new issues of currency for
it must be evident that the provision for
its replenishment is vague, uncertain and
could practically amount to nothing.
We apprehend, however, judging from
recently published letter of Mr.. Kelley
to which we shall briefly refer--that it is
his intention and that of the supporters of
the bill, to make, before they get through
with it, the issue Of greenbacks unlimited
in amount, subject only to the Will of the
temporary head of the treasury department
or the demand of impatient spectators.
That such measure cannot become law,
during the presidency of General Grant, is
as sure as anything can be of the future If
it was out of order for Mr.. Cox to suggest
that the discussion would be fruitless, be-
cause the senate would not pass the meas
IRE if the house did, and, even if it should
pass both houses, the President would
surely veto it, yet we think the thought,
so suggested, was proper and worthy of
the consideration of the house. if for no
other reason than to prevent waste of
valuable time. Before referring to the
letter, above alluded to, we cannot forbear
congratulatng Ben Butler on his "open
confession" which must have been "good
Tor his SOUL" that he was compelled to
stay at home in future on account of his
financial heresies-the advocacy of this bill
and we would suggest, although it is
aside from the matter we are considering,
that fuller confession would have been
better and that it would have been more
truthful il he added "and for other hcresies
rs well as for general cussedness.'
But to the letter, which was called on,
by one from the secretary of the Irrational
executive committee of the Indiana in
iationist party" stating that ''any measure
seeking to meet the wants of the peopl,
which does not abolish banks of issue. ant
which does not provide one currency, ant
That full legal tender with the intercon
rertlble feature, will not be satisfactory.
This, then, is the dish TO which we are in
viIed, no banks Of issue, down with banks
currency Inflated OF contracted according
10 the demands of SPECTATORS and ,hi
scheme Mr.. Kelley endorses and makes TIN
'eXt OF his letter He says at present h
owes duty 10 the republican party, whicl
lie will discharge unless it 'shal trench OF
the domain of conscience" Whether i
shall so trench, he will ascertain from tn
message of the President and secretary O
the treasury, 10 be made public The mex
day. If they favor an immediate return [,
specie payments, then the "trenchipg
begins, and he will throw himself into tn
arms Of the infationlsts, no matter int,
what political Civilization" it may lead
They did, in effect, 30 favor, therefore lie
Mr., Kelley commence to throw himself
Ills financial theory may he gathered iron
the following sentences II have long,
says he, believed aud fer some years en-
forced the doctrine that it is the duty O
The government to issue the money of til
country and to prohibit the circulation o
notes of corporations, whether state o
nnlinnnl aud that thn