Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-12-24
THE NEW CURREsCY BULL.

No features:
l. Free banking TO be open to all indi-
Viduals and associations, without limita-
lion Of capital.
z. The retiring Of an amount of green
backs, equal TO eighty per cent. of the |
of new national bank notes issued, |
until the greenback circulation shall be re
dueed to $500, 100000, after when no fur |
Their reduction Of the greenbacks is to take |
place.
8. The withdrawal and obstruction of
the fractional currency aud the substitu-
ton Of silver coin, the arrangement to go
into effect as soon as practicable, under the
direction of the Secretary Of the Treasury,
who is authorized to use the surplus money
for supplying the silver coin, and, if this is
not sufficient, to sell the requisite amount
of bonds Of the new ser les 10 obtain the
funds for that purpose.
4. Removing the cost for the coinage of
gold at the several minis.
3. The resumption of specie payment to
commence on the LIST day Of January, 1873.
The Secretary is authorized to use the sur
plus specie in the Treasury, but if that is
not sufficient, to sell bonds in order to OBJ
tain gold to pay the Treasury notes.
The free banking feature we already
have in the law of last June, at least
to measure far exceeding the demand
for it, judging by the operations un-
der it.
1t is claimed that the second provi-
sion issuing twenty per cent more bank
notes than the amount of greenbacks
retired, will not work any initiation, the
argument being that the twenty per
cent. viii be needed for reserve by the
new banks. Such may be the effect in
sound banking, but it viii be IN spite
of existing laws, which do not require
such an amount of reserve. Under the
operation of this provision, the amount
of national bank notes would reach
SI56. 100000, by the time the green
backs were reduced to $500, 1000, 900.
When they thus reach the proportion
of three to two, it is argued that the
national bank note will not be as valu-
able as the greenback, and that the
latter viii thus gradually approximate
specie. The logic Of this Is not clear,
when we remember that the bank note
is made redeemable in greenbacks. As
well tell us that a good bank note be-
fore the war. though redeemable IN
gold, was not equal to gold in: current
transactions.
The substitution of silver for shin.
plasters seems left indefinite, as tc
time, by the phrase "as soon as practi.
cable" We might say it will be prac.
ticable when a greenback dollar if
worth IS cents, five cents being about
the difference of alloy in our coinage
between the two metals. So long as
the greeuback dollar is worth only IS
cents IN gold, brokers could do {
thriving business swapping them of
for silver worth 94a95 cents in gold
OF course we might obviate this diff
fculty, by debasing our silver coinag,
further favorite device with wha
Americans used to call the "effet,
monarchies of Europe" The people
would not know the difference, and i
would jingle just about the same.
The proposition to remove the cos
for the coinage of gold, is based on tn,
idea of checking the outflow of gol,
from the country in some slight degree
Foreigners naturally prefer solid bul
lion to alleged coinaga, though tn
great bulk of our ante-bellum coinag
has disappeared from the country nom
the less.
The losing provision calling for spe
Gle resumption four years hence, has
of course, no present effect or opera
ton. As a pledge of the nation
honor, It Will not have a 1.-THE of tn
influence it would have exerted las
June. Then it would have been tn
pledge of party in the plentitude O
power. Now it is the penitent promis
of dying party powerless to fulfil
it-a party whose days are numbered
who cannot live to see its promise cal
ried ont. Men are more curious no1
to know the views of the incoming De
mocracy. Two more Congresses wi
be held, and third begun, before JaI
l, 1879. An assurance, put off 50 long
and now amid such circumstances an
subject to such contingencies, will as
sure no one. 1t may as well be omit
ted, for all the soothing effect" it j
expected to produce on the nerves
the sensitive world of finance.
OF the three novel features in thi
bill, we have already discussed two
silver fractional currency and set da
for resumption. Its third novelty
the authority given the Secretary o
the Treasury to sell new bonds,
necessary, to obtain gold for resumr
ton purposes. in this respect it
about the loosest piece of Legislation
we ever encountered. The necessity
left with the discretion of whoever ma
be Secretary in 1879, or rather in 1877
8, as the gold should be provided befor
hand. Neither is there any limit az
parently on the amount of bonds b
may thus dispose of. Not to be to
severe, we will charitably suppose tina
the trainers of the bill expect thei
Democratic successors to amend it /
these particulars before 1879.
A laxity of more practical impol
lance, because it bears on that porto
of the bill which would 60 into immt
date operation, is the neglect to defn
what shall be done with the so pc
cent. of grcenbacks to be retired. Th
, law does not provide for their destruC
ton or cancellation, and does not seeI
} to forbid their resistance at any me
ment. For many years we have bee
, made familiar with pilgrims from Wa
, street to Washington to regulate tn