Alpena weekly argus. [volume] (Alpena, Mich.) 1871-1893, 1874-02-17

lures of a plan looking to ultimate
specie payment. | give it in heads
with little elaboration of detail.
/. Retire gradually and cancel
as many of the outstanding green
backs as will bring our currency
back to the amount in circulation
in September, 1873, and leave the
growth of the country to work a
further relative reduction so as to
bring the greenbacks up to gold
in value.
>. If this relative curt ailment of
currency shall work some reduc-
ton in values, as it will probably
do, compensation could be made
by rigid economy in public eX-
penditurc, and reduction of taxes.
3. Reorganize the national bank
ing system Oh basis of four per
cent, bond, and to induce capital
to make a change, if necessary,
repeal all Federal taxation of cir
culation. This policy as to new
bonds, although saving nothing at
first to the government, would,
however, be stepping stone to a
lower rate of interest on our bonds,
inasmuch as in twenty years all of
them will be wanted as a basis OF
banking.
A. Stop paying the national debt
not yet due.
5. Fund five million dollars per
month of greenbacks into two year
one per cent. gold notes, interest
running till maturity and payable
with principle in gold. Authorize
the national banks to hold these
notes as so much of their reserve,
which is now held in legal tenders,
this would neither add to nor take
from the volume Of currency, as
bank reserves are practically dead
capital and worth nothing to the
banks nor to the public, only in
case the bsnks 60 into final liquid
alton. Thereupon cancel and de-
stroy so man, gre .nbackS.
6. Require the national banks
to pass to the credit of a reserve
fund an amount equal to five per
cent. annually in gold of their cir
culation. Now for the workings
of the plan. If the funding could
have begun January |, 1874, and
should proceed at the rate of five
millions a month, on the first of
January, 1875, one hundred and
twenty million dollars of green
backs would hold a like amount of
gold notes, then beginning to ma
ture at the rate of five million dol
lars per month. Now, as to the
time when the national banks
should commence redeeming their
notes, we see that their condition
on the first of July 1876, would be
as follows: Gold accumulated
from the five per cent. reserve
find. s40,000,000 T; coin from the
redemption of gold notes, beginning
January |, 1876, six monthly in
etallments due, S30,000,000 total
coin in bank to begin redemption,
S70,000,000. Now the practical
question is, would banks accept
the situation, or would they refuse
to go into liquidation we think
they would except the plan. Even
if the bond is at a low rate, the
exemption Of their circulation
from taxation would make up the
difference, and would give the peo-
pie the advantage of inaugurating
the advent of low rate bond.
In the second place, can the
country afford to retire the green
backs and substitute national bank
notes then to be redeemed in coin !
have given the objections to
nor-, las i, government currency.
Other objections might he suggest
ed, u as to the policy Of maintain
ing an iiredeemable paper curren-
cy the best minds of the coutry
are already agreed.
The next question is, will it be
too great strain upon the resources
of the country TO redeem sixty
million dollars year, beginning
with 1876. l reply that Andrew
Johnson's administration paid eigh.
ty million dollars year of floating
and bonded debt, and Gen. Grant:
administration has paid over fifty
million dollars per annum. Thi:
would seem to settle that question
At sixty million dollars a yea
over six years would be required
TO fund all the legal tender notes
1t would however, not be expecte'
to fund them faster than the gol
notes could be used as bank re
series. Should the whole amour
of greenbacks when funded h
more than the bank reserves woul
absorb, make due calculating fl
additional banks commensurate
wi h the growth of the country,
demand note might take the plaC
of the interest notes for the 4,
demption of the last legal tender
At least such policy could
adopted "a would in any event a
ford a sufficient amount Of cure
cy. 1t will however, be obvio
that gold would soon come in
circulation when less amount
paper money would he required.
The advocates of imitation fail
recognize the fact that If gold a
currency become equal in value