Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-12-20
FINANCIAL RELIEF.
A New Plan for Pulling Through the
Hard Times.

| To the Union and American.
An irredeemable currency is a curse, but
it is sometimes unavoidable. 1t was an alb
solute necessity during the first French
revolution, during our war for indepen-
denee and during the late sectional war in
this country. The curse is still upon us.
Great war debts are often gotten rid of by
reputation. England's great debt was not
repudiated. 1t was funded and is never
expected to be paid. Wise financiers re-
gard that debt as the great stay of the Gov
| ernment-almOSt every man is interested
in the payment of the interest thereon, and
in consequence interested in the stability
of the Government.
We are not prepared for return to specie
payment. We will not think of repudia-
tion, and the genius of our people will not
hear Of a great funded debt which would
give mortal blow to our already moribund
State sovereignty. But We are loaded down
to the guards and in danger of going to the
bottom by the present national banking
system, which takes from the people the
use of their money and yields them but
little in return. Being unwise for a ma
ton to have irredeemable Ecurrency, of
course it is worse for Individual States to
60 into that line Of business, and We will
not IOuC0 upon IDaI question.
No man but national banker or stock
holder thinks that the present system is
anything but crushing one 10 the people
at large. II is one by which the people are
ground finely to pay interest on banking
capital in the shape Of bonds. A depositor
places his money in bank for years, and
the bank uses it freely and declares divi-
dendS upon it which are enormous; when
hot fn-r lo4sa e
is grudginely supplied to him to a tune
which would make an old time bank d.
rector's mouth water. But banks are a
necessity. Can any system be devised by
which q man can obtain the interest on his
money in simple way, instead of employ
ing a set of bank directors to manage the
matter and pocket the interest? We
think so.
There are seasons when the commerce,
agriculture and manufactures of the coun-
try require larger amounts of currency than
others. At one time money is easy; at an
other it is stringent. In other words, at
one period there is too much money-at
others too little; hence enormous fuctua-
ton in the money value of everything.
Imagine, arbitrarily, that the country re-
quireS at its busiest time a currency
amounting to Sl,000,0 100000, and that at
other times $500, 900, 600 are sufficient: then
during the slack business seasons $780,
100000 would lie idle in the pockets of
its owners or be used by banks in discounts
to further speculation and fancy trade-the
said banks pOcketing all the interest arising
tnerefrom.
Suppose that the amount, arbitrarily as
sumed, as the maximum required, to-wit:
$1,000, 100000 is issued by the Government
in the shape of greenbaclls, based simply
on the faith Of the nation as our bonds now
are, then let them be distributed among
certain Government repositories in the
different cities, S200,000,000 in bonds in
different amounts from 500 to 81 900, con.
vertible and recoverable into currency,
and drawing low rate Of interest, say four
or FIVE per cent. per annum. Now when a
mechanic or other labOring man has saved
up 500 for which he has no immediate
use, instead of depOsiting in bank, let him
apply to the Government Depository and
exchange it for bond for that amount, ON
which interest at the rate suggested is daily
accumulating. When he needs his money
be has only to retire his bond and receive
the principal and interest; or if he wishes,
pay his debts with it. The minute the
business Of the country requires more cur
rency, out will come these bonds from their
hiding places, and they will be rapidly
converted into circulating paper. Here
then il a currency expanding and contract
ing just as the business Of the country re-
quires il, and the Government will at no
time be responsible for more than the gross
amount Of $1,000, 100000, will have no in
terest to pay on its currency debt beyond
that of the low rate of interest paid on the
Il II olc
rency, and the people would be relieved of
paying the interest on the bonds used as
banking capital. There is no danger that
any great amount of the currency would at
anv time be absorbed in bonds, for they
would dread too small an interest to tt
them for more than temporary call invest
ments.
This system would be Available, no mat
ter what kind of currency should be put
forth by the Government, whether silver
and gold or merely printed paper. If the
latter, gradual return to specie payment
could be made by gradually substituting
coin for retired paper. a small commits
sion allowed to the government depOsIto-
ries on each conversion OF greenbacks into
bonds, or vice versa, would pay the expense
Of running the machinery and release the
Government of expense.
A bond of the kind described would avail
for a serurity when in the hands of me-
chanic, should he desire TO rent a house or
To make an arrangement for future payment
| of any obligation. Investment in these
bonds would answer for call loans and avoid
the necessity and inconvenience of prepar-
ing trust deeds and mortgages. We could
write volume on the subject, but we pro-
pose simply to give an outline which may
be filled up and shaded to taste by anyone
who will take the trouble to do so. But
we have no more idea that our suggestion
will meet favor with bankers and money
lenders generally, than that dogs would
vote for the passage of an August muzzle
law, or that learned disquisition on the
subject of homeopathy would be listened
TO patiently by college Of allOpathy.
C.
A NEW potato, known as the White
Queen creme blanche, is being cultivatedin
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