, 1874-12-08

thu Stntn eynn If Krl}orr 1ouoa mn nts1re ,vh;ch
la cannot ho,1 M bour sovo t,v tto o;d ~ t1o
| Fof1orol nrmv nni7 novv
-.,-----..<....,..-,.,.
--,,,--.-.-
m ,,. -. LIZ eoan.'
1no UAn,Aso ~, "ss' e''eS o''1'of''n pso"'-
'oneo " lne It4'o"!nk a1'e'np' ~ "rgn'hehe
-, - eappo.I , y. ~ "nuo"1 plo!.e1 ~ tel'ace'
~ 'n' N'1'ion" n".'A HUGS WIN eseenoacks
aa a mose % o .. U.ea states notes Tor
probation whatever. THO National Dunk notes, ovor
sineo thu first q them WAS Issued, haSo circulated Gu
~ a % o oonna ~ ana @ os ~ 3 On .he
yall,o Of Tho clrcuatiuu n,oun demands ro,n1v on
tho work 1t docs. Our currency would have Just tho
eamo work to 10 1t wcro ail III tue form Of srcen-
~ hs a.ss n Sutn ~ @ ~ ~ ~ ~ s.a0
burosoro til 1t /. would bs worth lust AZ mucl, esno
cal]y the prospeo. t> Of its uuao couyorhbility
into coin would 10 ]uat as good.
| AT prosont tho United States, with IN out
standlng issue Of S3s9, 600, 600 in graerbacks,
cannot meet its promises to pay, and slirinks
from mining any day, no matter how distant
when 1t will meet them. II it cannot re-
deem S3s2, 2,ooO,oo0, it will certainly DO for
less ablo to redeem $500, 10000, which
would be about tho sum Of its circulating
papor If the National Bank notos wero re-
placed with Legal tenders. If man staggors
under weight Of 200 pounds, le will not
walk moro easily when that weight is
doubled. Tho roason TINT tho greenback
hns any purchasing power is because
it is redeemed in gold, not by its
maker, but by tho brokers Of We'll
street. They havo bought it, since.
it's first issue, Mt @ discount Of from to Co.
per cent, and tho amount Of gold they have
bocn willing to give for it Inns fixed it's yalue,
from day to day. The improvement of tl,t,
prospect of ultimate mud not listant rcdemp
ton las induced tho eold.brokers to pay NOR >
for those unrcdccmed notes oach year, An =
policy or measure which looks to postpouin 4
the d ny Of redemption must necessarily dt =
| preeiato their purchasing power. Auy matt,-
,ial increaso Of tho quantity of those mott ,s
must diminish the prospect Of redemption, !.
and cause tho gold-brokers to pay less fi.r
them, aud consequently depreciate the IL
value.
To double tic issue of III i17oloe1nable cr,1-
rency must necessarily weaken tho probab L.
ity Of redemption a,,ii therefore cnuyo den, o.
cintion, az It would produce belief in y, r.
mancnt irrcdeemability, which in fact IL
equivalent to Reputation. Hence to subj: IL
tuto i,Yeleemable United States notes for 1o
bank notes would necessarily result in a., int
doprccintion,
The Tines third fallacy il, that tho 1ya-
tio,al Bank notos lave circulated wholly on
tic credit of tho Government, and not at oil
Oh tho credit Of the banks, These notes arc
secured, first, by M United States gold b;,nd
of s1oo for every 500 of bills in circulate on
md, second, by tho credit Of tho banks. Of
what does this crodit consist? It consist Of
tin surplus funds of tho baul,s. of their .ren1
cstnto. of the individual liabilty Of tho 81 ,aro-
ho1dors ovor and aboyo t11o amount Of :their
stocls. and of tho oo1latcrals held in sec, ,ritv
for lna,,s. Theso coliatorels ropraso,,t; fila
catt]o horses. and hoes in transitu to mar
,et. tho stocks Of unsold n,orclandise, mud
manufactures, tho cargoos of vessels on tzaged
in inlonl end outlaud tradc tie grain il,
ato,are and in transitu. md n nood part of tho
enormous massof property roprcycntcd by tho
ubovos of Arerionn cornorationg. TIN han1,
notoa c;rcn1ato thon. inliract,v nm tht, orod;t
Of tho United statou as ropresoutod 1,y tho
| bonds on aeposit ut Washington, and ftircotlv
m tho credit of tho banks as reprcscr ,tol by
tho tremendous aggregate OF woult1 p1o have
cota1oc,od. Substituting grconbacks for
han1t.notoy would dopriya $3.50, oo0 600 of
,ho national circulating. medium OF til credit
II wow ilcrivog. mt only from about; ssloo.
nm o,,f, IN United States bonds, but from all