New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-10-01

the circumstances, under convertible currency
would be TO allow free issue Of bank notes. but to
tax the issuersf
A. don't say free issue but believe the inter-
mediate agency of some private corporation Is the
true method.
@. To require, as now. tho security OF United
States bonds would be good provision under con-
vertible CURRENCY
A. Yes. have always advocated the principle
that the deposit of such things national bonds Is
legitimate aud proper security to be required OF
the issuers of notes LII You have private ssuers OF
public money the nation has the right to say to such
private issuers "You must guarantee to us not only
that we can put you into the courts, but somehing
more-that You shall have thei means" Another
illustration. In 1895, the English nation III
Cured great disasters from banks breaking
which had the right of issuing notes, ana
IN not few instances those notcs were only
paid at half q crown to the spound 1t IS against
all principle that such thing should be possible IN
public money Therefore that led to the suppression
of the one pound note, which was mistake ana IL
led ultimately to that clause Of the Bank Charter
act which will in time extnguish the whole private
circulation of England, and leave only notes OF the
Bank of England.
O. The present condition which National bank
notes are issued viz, the deposit Of United states
for the issue of convertible notes. or free banking
as we call Itf
A. Provided the notes are efcctually realizable in
gold on demand there can be no possible objection,
and there may be great advantage in any quantity
of notes being on salo to the public, provided they
are rendered perfectly safe by tho deposit OF ade-
quate security.
@. But this rule would not be safe one with in
convertible currency
A. If this rule is applied to inconvertible cur
rency it does nothing to avert the disastrous vice OF
the currency losing its indispensable feature Oh
not fluctuating in value.
@. There is no system of redemption OF one KIND
of inconvertiblc paper with another that will miti-
gate the evils of incontrovertible currency
A. call that all hocus pocus.
O. You consider the premium on gold, rs quoted
here on the street. as tolerably accurate measure
of the depreciationf
A. presume so. l am not aware of any clrcum-
stances showing it is not
@. Il the common dread of contraction among our
people well fOundedt
A. Not at all There is great confusion in the
meaning of tho word money. Very little OF the
business of these great modern nations transacted
by money proper-currency. 1t is mere trife-
mere change. The money is not the thing lent by
banks or by lenders. Do you suppose If wanted
TO borrow 100000 of my banker in London Tor
mercantile operation should touch one sovereign
or bank notei Do you suppose the trade between
England and the United States is done by currency
Do you suppose the grain of the Western men
rs paid for in currency 1t is fatal
fallacy to identify currency the means OF
exchanging property - with the property itself
which is exchanged. Trade is an exchange OF prop
erty. The money is very necessary as a measure
but it is not the trade
@. You don't think there is anything TO DC said IN
favor of the usury laws in this or any other couh
tryf
A. Laws limiting interest are not only bad, but
absurd. They are always evaded. They are mis-
cbievous and nonsensical Your banks here are linn
tied to per cent When the loan OF money is really
worth more than per cent, then people don't go 10
the banks but somewhere else. You can't get any
thing for less than 1t is worth.