, 1874-10-03

sg s.e'sg oss sa',*' ep"st r"5.s ef g 3oySs
Government uils will hays III snurh right M the Mn
Thrse erccc notcs Mill oc .ieiaeto anpnyn,a notcs
ocra'i" ss to- W Thsir w sao viii epe,a aatey e, tho
dopos!! of dossrtno'li l'onls ,vhsl, they leprWet
s they w b ~ eyro 2ro q :" tho ts IT se
they viii boar upon tho race the slne Of their ssuc,
.he ,lao Of tho net ausl1zns iher isano, md their
lnrr authenticity, congfoss m'.ss sn,or1o Tic crca-
tion within tho TtcaHury Department Of
TilNE1 NEW nuREAua.
First-Tho Bureau ut Dap1.lt, nr Dnrosf-Onlcc
1Eosilctl 70 n,any bont,r.
Tis office, afcr presentation Of n!epoht certificate,
VII proeeet TO ssrkc OF srcco hnlk.nocs 10 tis vuo
Of 10 per cent @ Of the bois, Fortified to rs dsIotlted
Ia1fd-Ths bureau VI 1sae. or lssI,e-Dllce. This
Office after verifying tho preyious coracato will do
Liver 10 the dsposlior ','a bank-notes.,
horne tlEon tho banx-noos will establish tic facts Of
tie deposits Of lilo bonlls aud Of tho legitimate ssno
et e nyss 9gstns: tat depos Tho Tftssary wl
a!d these signatures, and FOR ,inth!ng nnre. And
through this Responsible actlon OF the Treasury, tLa
K. tis point Wild, hays ~ now reacca IL becomes
proper to consider
WHAT HIGHT 7nK TREASURY or THE usrr,:p sTArEs
uAs
10 nasuma tho functions propose 10 couHdo to II.
1s al elementary truth Of Eo'ilc: at tl,n right Ct
is a,ntesl llis for the exercise of this right and In
return for ho guarantee which tho exercise uf this
1Klt gives to con.ncrec tue Sovereign may Grorerly
delnnnd tax or royalty known AZ intnagc TlGra 1s
llo reaaon why this should not he admitted 10 we'll in
regard tu tho issuo Of Government raror ~ IL regard
Of sroco colu tic Government hys tic bar of silver
or ths inEo Of god hsalnla It With III do and re.rns
70 tn, S %so H. IT " r yso res'F'ns for itself as
1n regard to pnper ISSUE tue aano process IL Gono
through III tlcury. Tils Govern,uent holding ccr-
tain nil1nber Of millions Of fra,cs Or pounds. tlo-
lars. III htlDn tfSlln DlflHle In
com, With mi.tagc In prac.'ee, this, However, is
Lei Inc bricily oxl,ain how thia baprens:
THE DERrs Of MOST or TUE 1:uKopgAN krATEa
aro rreJccmabe. Tho b,ldycts Of England, France.
s nsos sy sa| ss as '
pctai nernst-clain,s. And tho uoyornmcnls Of tcae
countries can only tcsnana from the saxpayg l'co-
pic tho rcfenuo annually nrcessary 10 meet tho annual
paynibnss. ..'
in these countrsca therefore, the right Of sautng
"ninting aiIcr ,tonsy has been cnntoyrod by the
Dank Of England tho uak of Prussia mil tho Hank
Of France whic arc empowered to itstio paper money
OF roHrBo this right has not bctn given aways What
compensation haa been AtiMante,l for it7
IN the rst p!acc, in order TO guarantco commerce
to keep certain fixed ana einite specie rcservc In
The second parc. for t4a alsan1age ul aud
tho public, these institutions required to discount,
signatures. In thu third place. for tho nvantago of
the sosercgn power hcsa nstitut1ona aro.re1urc to
~ At ecrain lied rate Of iterest Hero W. haso the
tx Of mlntage paper 1t In col1ectcd In Europe
III rlE UNITED sFATEH
thfg tax can 10 collected more conforhbly with the
thcproticai trh Of things and thin fact, by thu way,
goes 10 illustrate Tho tl,excnHablcness Of nnsonnd
" IL SosS sa s as ~ 'd 20
Tho unstsd States have Inacrlken " M M m to ray OF n
thirty soars' time lebt Of $3.50 1000. ~ thttr
right aud their duty 10 donsa1d uf the taxlayers Of
tho country tho gns ncccRsary 70 pay off tho debt by
such inHtallinents In prudence may dictate, and ta
imposes upon them the obligation of keeping avecie
reserve.
Ttcy onght th6rcforn to retain for the Treasury the
e1crcto Of te soyerogn right Of sss'ig paper money,
and 70 claim for o Treasury prorcs compensation
for tho exercise Of that aorcrcigt, right.
Tie bos means surely Of securing this compensation
Il to bso II UPON IN exchange Of Heryra between tho
Treasury and tho public. II tho Treasury liberties
the public from tho annoyance Of being Obliged to drag
hbuNt great amounts Of 6ICca 1t may tl5 rrqre tat
tho public sla ease thu rreasary Of art Of It's
pcuscs.
Now, in order to provide tho public with specie bank
non thu Treaanry haa taken upon itac nn ag,ncnta-
pay It Is III, iair therefore, tint those WHO arc to use
tho nro:c bank-noteu SHOULD drfray this Increased 1
'eiiss iow IN Iii, be s,oue9
Very simply cong1ess hos only to authorize the
Treasury, wien bonls are lrpus.i with It tlat-
Ssas sss BY to
il, during that tine, ao rs but Mre, per cont on bis
Thia measure would. not only SECURE the objec!
aimed at but, while It ID perfectly equitable It would
actually better The presput condition Of hankurs aador
tna present Blinking law. THIS can 10 briefly shown.
THE AUGMENTED INTEREST
under tho proposed plan wonld be sl7,ai:,oo9.
AgauEt tl!tB we aro to put: g..
Two per cens on sISa.go oDo ALREADY :ros. '''''''
lied hy the National l3asaks vi collateral
for existing circulation .........,...... 1890, ,OQ{
Twa per cent on Sc, 700 10 be dsrosi!ed
IN ssr IT, e.n$, ar The new circulation m,
Two 80 ',s Per ee eent IN aitioai
bonus to be issued III ors|cr 10 brluguptho ....
ciscu}a,lon 10 the figure Of SaAa aao0 ooe
Total. ..stf,6 QUO
From this II s apparent that my plan wonld really
to The Treasury t II ss;oSo. &C. "Ns' sam which would
probably cover all tho expenses OF printing. Nc, tho
As 10 ths tax Of Il per cent on bapke that Is n.erc
question Of tho budget which Congress- may dcal with
Gil it aeea best. o..
have shown already that under my plau tho cspita
Of tho debt remains ,,nnltered show now that the
Increase Of the Interest curges is largely
Who, tllen. can complain
eycn. as will nav rhow. fhe National Ba',la. Tie
Treasury ustsaes gsins; t.or lossa Tha ,aSlaysss
| change for positive Edya,ltaye.
THE NATIONAL HANKS
alone will Clearly ,l,ako profit by the operation
How Ia th!a the caHn2
A Mt present established, When Nationnl Dauk un
derlakeH tho issao Of currency. what docs Il tlo7
Agains this bond IT receives 10 rer ccnt Of ita faco,
toss II
So that tie right to iasuo no per cent currency costs
HIT beforc the crisis Of 1879 tho law Obliged III.
bAnks to keep in their vaults currency rescryc q
per cent, Ant IT, the law thin nsuNe14t has lnuisl
ell tlls roacsye prudence aud sound bauhing Lcep
| It up.
50 That in premiums aud in the bank pay.
$50 for tho privilege Of isaulug every sd5 which Il
e.nlt#.
The effect Of thin ta that Upon tho per cent intores
which tho banks draw now upon their bombs they iopt
5J per cent, that In round numbers they receive
now upon tlclr bouds not per ceus, but lor ccut
interest.
Undcr Tia new state Of things If tho hanks keep the
bonds deposited tn tho Treasury they wilt receive
pct Gent instoaI Of per cent Interest upon tictn
But they will need 10 reserve and may tho full
! a1nount Of 10 pcr cc,t at the l,otea tcy receive.
This glveu them pratt practically Of Is per cent.
II u National Dauk ut present carries $lGU,r0D D.
Government bonts III ils leser nj sllH 00u, nudor th
new order Of thints It would carry the sA1nu sm Ii
| ita balance Of 3ilt,U10. ..7-
The ai!crence Is q phantom Of difference. tho phnn