, 1874-02-07

Cy WIS scarce pecauBo 0VOryoouy Aonlueo WuAt
they had, n largo c1asa Of tho people could Boe
TO othrr explanation for it than that thoro was
deficiency in tho supply Of currency. As tlo
only cnrroncy wo havo III this country now Is tho
paper representing tho indebtedness OF tho Gov
e1nmont to the pooplo who hold its promiesory
notes, or tho National Bank notes based on Gov
otnmont indebtedness, this resolves taolf into tho
absurd argument tint tho Government waa not
sufficiently in dobt TO tic pooplo to insure tho
prosperity Of tho attcr. But now that tho pros
pority Of trado has boon III measure restored,
nnd money has become abundant nll over tho
country, tho nilyocatcs Of moro currency are III
uostas loud as evor in claiming TINT the Gov
pr1ment should increase Its debts to tho people.
It Inns boen All nxiom from time in,menorial, TINT
tho indebtedness of cithor Government or an
individual should not bo increased without tho
receipt Of something III return, Of oqlal
Or groater yalue than tho indebted, f
neither Government or all individual should
givo it's or his noton for nothing. Aside, thon,
from tho absurdity OF tho argument that tho
Government Should increaso itB ilobtotlnoss to
tho people by tho issno Of moro groo'backs
when 1t has no OCCASION to buy anything for
which to givo its promiBsory notes. the pertinent
question comes up: How could tho Govern
usent 60 to work to issno its notes2 Ono says,
Lot tho National Dauks be abolished and legal
tender greonbaeks issued i'll place Of tho bank
notes" But the Government does not
owo tho National Danls anything, except
Us the holders Of it's bonds, mud us theso are not
duo, 1t could havo no occasion to pay tho M
NIL tho other holders Of United Statos bonds.
"Woll, then let tho 7400, 100000 of United
States bonds deposited by tho National Banks
to securo thoir circulation be 'paid or in
"moro-grcenbaoll theory. Now, tho plnin lam
guago for this proposition IT, that it Is oniy n
proposal to ropuliate tho interest OIL $780,
100000 OF tho bonded debt. But how would
51,3oo,ooo.0o0 Of Government bonls Most
certainly It would cause MI immense decline.
Tho confidence Of European capitalists, already
much SHAKEN III American crodit, would be o.l-
troly destroyed. American Government bonds,
rs vol as American railroad bonds, would ba-
como rll.salablo in Europa, and would bo sont
home for sale ns long rs there was any market
for thcm in this country. II tho bonds dcpre-
ciated, the greenbAcks would also deprociate in
prop0rtion,-in other words, gold would advance
tho war. The currency prices of COM
mudities would be higher, but, as ov-
cry transaction would then require
more currency in proportion to its doprocintion,
the volume Of currency would DO evon smaller
III proportion to tho volume Of transactions than
now, and tho necessity for more, and more; and
more groonbacls would become more urgent as
the progress Of depreciation continued
AuSIl} sA56 tAo OtAoES 4lk LIt dOfCIlHHellL
keep its plodgc in the bonds, nnl not repudiate
elter tho principal or the interest on any Of it's
interost-bearing dobt, but lot it issue moro
greenbacks md buy up the bonds at their cur
roncy price in tho market"
But this would only result In making q groator
difference than now between tho value of Tho
bonds aud tho grcenbachs Tho currency
premium on the golC-interest bonds, Instead Of
being, from 12 to IS per cont, as now, would be
two or three times rs much, md evory exchange
of Groonbacks for bonds would l1nvo to be nlutc
ut loss to tho Government Of from 20 to 80 per
cent. This ilcreaBe OF tho Government indobt.-
cdness could not fail to depreciato its credit,
md oud in the same condition as an outright
repudiation of tho interest by "paying tho
bonds in greenbacks.
The fact ii, there il no way in which the Ereon-
backs can he increased without depreciating their
value a1tl tho moro this iB dono the mora de-
mand there will be for " moro grcenbacks," until
apoint is reached whore they would be worth
nearly nothing. It is probable that what tho
majority of those who demand ~ more currency !"
riatca 10 that old debts can bo iai,l
have not tho honesty to say so, Those WHO
do honestly believe that thero is too little cur
rency must finally come to tho conclusion tint
tho only way in which the country can lave ia
much paper money as cnu bo kept iii circulation
Hithont depreciation is by FREQ banking, concur
rent with d movement towards specie rcslulp-
lion. II specie payments wero actually resumed,
}he s2o0, ,000, ,00o of specie now in this country
would como into circulation, ana real money
would DO more abundant than the fictitious
monoyis now.
LOCAL STOCK AND noND MAnKEr.
Nessrs. Preston, kean l. Co. quote na follows