The Hawaiian gazette., 1874-11-18

uotes, The former process can now eedOne here !
bat he holasr Of bonds has nol The sane Privi-
lege. and must wait he opportunity for the sale
Of tAsm At par or lesa It win readily Be seen
boz much this woald add to the commercial value
Of government boeds, They woaa BE- more
sought for BY those who possessed mooey which
they desired 70 invest Tor short period oaly, the
act Of their eOuvVrtiOiiIy INTO colo, whenever
desired, giving them a, all times a par value, il
not premiam.
This theory l. attracting much attention in
America at the present time. and on its face Ger
lainly bears the impress Of being feasible. II Is
possible that 10 prseiice. there may Be found OBJ
jeetions to il; but II So they have not as yet
been raised. We copy the article frOm letter,
written By Heury c. Carey. as pablshed in the
Pi,lSGsi pAsd Norti AuSeriess. Of recent date,
aud iauts our readers who may BE- interested in
the correOey qaesiioa. TO Psruse IL;
Secretary BOasusl's plan Of funding the national
deb, has bad pretty fair trial. True. the times
have been adverse, bat We have generally sSana thea
50 when We needed TO borrow money.
Having given to the Secresary's efforts hearty
spPP0rt throughout, urge thAsA radically different
plan may next have fair trial. Before We send
another bond abroad 10 b havksd frOm banEibg-
house 70 baking house throughout Europe ask the
soysruueat to try-jass earnestly to trytO and the
belk Of car debt At home, We could not have sold
cur hOad; Gsrns The dark hoars q cur civil var to
Europe at any prise no matter how ruiaoes, five bad
not srst sAova our faith in then By tAkisg hundreds
Of millions Of thsa ourselves Sc nov. having seen
ASu rsluesan.ly they take reissues AZ SPsr esD
With discount let Us show then that stand ready
take lArre amount At lover rate u interest At
par. Here is the gist Of cur proposition.
Let Congress make cur grseabaeks fandHhle, at
the pleasure Of the holder. in bouds Of 500. $1,000
and $1,000 drawing interest the rate Of cent
per day on each sICO tor SIS per annuml and s1-
shAngrAbe IN reenhasks at the pleasure Of the bold
sr. Nov. authorize the Treasury 10 purchase and
e1texaish Cur Outstanding bonds 50 fast Is is sap
piled with the Of 50 doing BY receipts for
toEs otherwise, aud to issue greeabseks When
ever larger amounts shah Be repaired. every 0as
being andabls in sums Of $780, $1,000 or $40 Geo. as
aforesaid. At the pleasure Of the holder. in boads
drawing an annual Interest Of SsS il coin Per annun
aud these bonds s4shaDssabls inte srsenbaeks when
ever holder shall desire il.
a. The bsnsats Of this system would Be these;
IL. Oar gresnbaeks. which are now virtually
fAlssHO0ds wOuli be truths, The 6Ovsrnu ,us would
pay them on demand in bonds as Aforesaid. which is
in substantial accordance With the plan % which the
grssnbsSks we're arst authorized.
-. Every person having gresnbasks for which be
had present nesa would present them sub
treasury and exchange them al par for these bonds
Suppose he has Sl0.O0o which be expects to use
month hence. be can make them earn him $50 mean
time without nearrirg the smallest danger Of loss BY
bank failure or otherwise. aud with positive Ger
taaty that the money wOald be ready for him when
ever be chose to take It.
IS. merchant IsaEss New York with 81 .OOO zoe.
which be proposes 70 invest in wheat the West
in cotton at the South. He calls at our ub,reasary
exchanges his greenbaeks for these bonds And takes
OF sends these Chicago. ST. Paul. New Orleans or
Galveston, to Be used when needed. After looking
about for month be hays half the produce he origin
ally intended, converts half his bonds into green
backs. receives $50 per day. or $tSeS in all. inter
est and makes bis paymenss. Amer travelling and
booking for another month. he invests the remainder
Of his capital receives 5000 as interest thereon for
the two month. he has held the last half million Of
bends. and lays his course homeWard. His bonds
may have Lain nearly all the tine be owned them in
the vaults Of bank, but they we're earning mon
sy, not for that bauk bat for hin.
- 0urgresnbaeks. no longer false, but convertible
pleasure into bonds bearing moderate gold inter
est and exehangeabe as Aforesaid could rot fail to
sPprseia,s steadily until they nearly reached the level
Of gold indeed thsy uOsld unless issued too pro
fusely. be really better than gold Drawing higher
Eae Of interest than British CsnsOs and e0nvertibIs
pleasure, these not, they would IN time OBJ
tain earreaey even in the old World.
r 5 The trouble 50 iuVstsr1tsly borrowed BY thou
sands with respect to over-issas.' rsdandaut cur
rsney,' etc., would tor at least should be hereby
dspelsd If there we're at any time az excess Of cur
rsney would tend PreciPtats itself into the bonds
Aforesaid. If there should be scarcity of sarreu-
reuey bonds would be exchanged at the Treasury for
greenbaeks silI the want faIy supplied. Black
Fridays and the licking up Of gresnbasks would
be numbered Eiih lost arts And hobgoblin ,srrors.
80 Though the demand for these bonds might for
mouihs be moderate, their eouvsnis1ee Aad NANTES,
utility would soon dfEass their popularity and stina-
late m eTsT-Wideuiu demand fer thea They sould
Be 1E0rits investment With guardians aud trustees
Who should expect to be required 10 pay over the
funds held By then at early day Ehetbsr kzsd or
unesrtzin- They would say, Thoagh might invest
CT deposit these funds where they would command
higher interest, choose to place them where know
they VII be safe and at ha ad when called for
81. Ultimately, We believe. they would beeous
50 popular that handreds Of millions Of them would
Be absorbed a. or very scar the par Of specie aad
that With the proceeds equal amount Of cur cut
Standing skies might be reiesmed aud cancelled
without advertising fnE loans OF paying bankers to
Ehin for "a thr0aghsat Ear1Pe- The interest thus
saTed 70 onr eonHtTy Eoald Be Al important item.
"sGsh are the rude outlines Of plan We I'D rot
0rigiaatss bat Whieh Ne heartily eadorSe- Why not
give It trial. We shosd dearly ike to inform "a
r0pO thai since she Eeezs % aay more Of cur
boujs 1t S per cent Ha haze rnnclaisi % fats TIE