New-York tribune., 1874-02-10
VENDELL PHILLIPS on FIN1yCE.
AN OPEN LETTER TO Il. r. BUTLER-A HOME CUR
RENCY AND INTERNATIONAL CURRENCY.
The following letter appears in The Eren

AN OPEN LETTER TO II. =. BUTLER-A HOME CUR
RENCY AND INTERNATIONAL CURRENCY.
The following letter appears in The Eren
ing Post;
To me Hon. b. F. BUrLER-Mr: Allow me. among
the multitude OF counse ors to propose plan OF finance
A debtor nation is always the slave of its creditor
Our slavery TO England seen III the threat of the Bank
of England to swamp Mr. B94Wes Syndicate II he ana
Of this dependence debtor nation should separate
rency in order its home system from foreign
tererence l propose, therefore one system Of cur
between ourselves and foreign nations.
For home currency promise, as % follows; W
bills and obige them to return what currency they
have within reasonable time.
Accept the present Greenbacks in payment OF all
debts due the Government. and destroy them fast
Second the United States lend greenback, at s65
per cent per annum to who VIII pledge National
bonds or improved land. For bonds thus pledged the
owner 10 have in greenbacks fourfths of their
value land onehat OF its value such value to be
aSaen during the last ten years such greenbacks TO
be legal tender for all debts due the Government well
as for due private persons Let them state. each
one on its face the manner which they TO be
deemed, which specify in the next paragraph.
Third Any such borrower. who AT any time finds he
does not want his greenbacks csn of course,
them aud have his bonds or land released 10 him. Any
have in their stead National bond bearing 365 per
interest payable III greenbacks the principal payable IN
gold in 20 or 80 years from date
The results OF such system would he:
First: To redeem and destroy the present green6acEs
not keep faith in the matter of their redempton and
also reduce the interest on our National deDt TO about
four per cent Suppose the nation thus issues Qendsl
81 2OoOOoOOO OF currency, then it will receive
$4,000 in interest The annual interest on our debt
is now in round numbers t2 0OO Subtract $40 O0OoO
from this and IL leaves TO pay sS0000000 annually,
which is less than four per cent on the whole debt
Twelve hundred millions or currency would be no
extravagant estimate We have two three times this
amount OF what IA really currency since bills OF
exchange and checks really in their nature
and effects as much as greenbacks are. Under my plan
we should fewer checks and bills Of exchange and
more greenbacks But II we had these 100000 900 OF
green6acks and beside the amount of bills and
checks now, II would be no III. and wonder.
now twice the amount OF National currency per head
that have. new and undeveloped nation like our.
selves ought 10 have twice the amount per head that
France has Hence II our greenbacks we're trebed II
would be well.
Bank Of England, nor any ring, there Or here could
disturb currency by corner in gold greenback
We should be be yond such interference
Third In time capitalists will invest in such bonds.
since. in conformity 10 Their present theories, these
Fourth: We develop new country by having
money abundant at 35 per cent interest," and can thus
Why cannot we now compete with scotland in ship
building or with the Welsh Ia making rails 2 Not be-
cause of our rate Of wages that Is not the reason.
In tins century proves see his e) that II is cheaper
build railways in and Hungary by carrying there
English workmeD. at 50 cents day than by employing
natives on the spot al 10 cents day III y not rate Oh
development IL is because our dead capital lands,
buildings. machinery is worth here TO- H. and IL per
cent Abroad IL Is worth only per cent ana we work
at constant disadvantage OF 10 10 per cent, year by
year GIVE our Eastern manufacturers and our West
ern landhOideTs money AT per cent and we can then
defy the competition OF the world. Keep your revenue
tarin to pay the debt Abolish its protective element
at once. waive entirely, far home currency
y concerned all aDOrtive attempts to keep gold basis.
We have never really had one. We have only pretended
Va have one One dollar IN g0ld tO FIVE paper
Is no real gold basis We have pretended IL was and
consequence IL has happened inevitably that the moment
confidence ceased the banks have always suspended
specie payments. Just the moment we needed specie
could not get OF the banzs IL is OF no use 10
try TO keep up this sham any longer. ~
As for our International currency we must renember
that coin Is worth nothing abroad as coin II i. re-
ceivcd only much merchandse accordtny 10 ira
purity aud price ia the market ike wheat H. m a. gold
i a convenient medium OF exchange on many aecor,t.
and nj present received by the world our Goyern
ment Will help merchants to IT, order 10 do tina
the Government will certify by Its stamp weight
and purity OF gold bars 10 its mint. Govern.
meni win keep gold deposited with by merchants aud
gye certificates OF its amount aud value. Such cert-
ncates may used here and abroad thus enabling
Ia We .od -" carving gold To and