Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1874-12-11

Plan Providing for a -COustisa-
tional Currency, Proposed by aOn.
II. NJ. r. Hunter. State Treasurer
OF Virginia.
To His Erce1lency, Jas. L. Kemper,
At your request, I submit the fol-
lowing: Let the State issue s., Co.,
900 in bills of the denomination OF
one dollar, Eve dollars, ten dollars,
twenty dollars, and in fractions of a
do lar, with q provision that the holder
NAV at pleasure convert these notes, In
sums of 800, or multi pies of 500,
to draw irteres. from the State at the
rate Of four per cent. per annum in
specie. In addition to which the
holder OF this bond shall be allowed to
reinvest in bills of the like denomina-
ton as at first: which bills shall bear
no interest, but shall be convertible
and recoverable as originally pro-
vided. The interest on these bonds
shall be paid semi-annuaily unless the
holder shall convert them into curren-
cy at a shorter period, when interest
snail be paid for the period of its ex-
istence As bond. Until the sum OF
Sc, 900, 600 has been issued any holder
OF Virginia State bonds shall be al
lowed to exchange them for these
bills at the market price IN Richmond
when sold for legal tenders. And when
once issued these bills may lee re-
ceived at par in payment for half tie
taxes of any person or corporation who
may owe the State for taxes.
After purchasing these bonds inter
est shall be paid on them, and after
paying interest on the converted bonds,
as herein provided, the residue shall
be invested in State bonds, as hereto
| fore prescribed, and the interest paid
| to the commissioners for the purpose
of this investment may be paid in the
| whole or by a portion of these bills
| collected for taxes.
The sinking fur might thus be con-
siderably increased at but o small cost
| to the State and O currency provided
| which would afford agreat relief to the
State if not issued beyond the limit
herein prescribed. It would perform
the most useful functions of currency
without encountering the d faculties to
which currency founded upon the
promise to pay specie on demand IS
often exposed. If the currency should
be redundant it will go into the Sc con
vertible bonds, on which the State Will
pay interest in specie, and enough will
be thus fur d I'd to adjust the volume of
currency to the true demand of trade.
and the quantity would be thus self
regulating upon true principles. The
quantity thus funded would probably
never be large, and the interest upon
these bonds would be oil the schems
would cost the State.
The rate of interest mi ght be 80 ad-
justed as to keep these bills at pa
with specie and this ought to be done
but the true rate for this purpose
would have TO be ascertained by trial
It is probable, however, that four pei
cent. would be found very near the
true rate adequate for keeping these
bonds and notes into which they arr
convertible st par with specie. o.
the other hand, if the money marke
should become tigat, and should th'
banks be unable to pay specie. as il
often the case in times OF panic, tn
, bonds would be reconyerted into cur
: rency, and relief would soon DO afford
ed to O great extent, if not satiIely.
In such times the promises to re
; deem the bank note cannot be perform
, ed, and the distress is greatly enhan
, oad. We all know how often--nay
!, how invarisbly-thish has proved to b.
the case, whilst the means of relic
have been generally found to consis
in new issues or release from the ob
legation to pay in specie for time
The soivency of the Bank Of England
; was once saved by finding an old cas-
, II notes long forgotten, which wer
isEu>d in sufficient Quantities to re
lieye the pressure. The Bank of Eng
land, as planned by Peel and Ia.
school, has been saved once, at least
by q relief from some Of its restrict
ions, and the grant of the privilege K
Issue more notes. In tue plan her,
proposed the distress can never be n
> HANGED by the inability of the State &
redeem its promise. 1t can Away
, find the currency according to promise
: and if TOO much be not issued it Ca
be preserved at par value with speci
or very nearly 80. To provide 4 rem
|, edy against such danger it would b
, well and safest to offer no more thar
!, S3.000,0O3 in s1ch bills. Here, too
the q-.antjtv i'll circulation woa'a b
; regulated by the law and wants O
, trade. No more bonds would be re
. converted than enough to NEE. TIL
, pressing demand for Inoney. Ii the
> State should take care to preserve it
own credit, it can easily keep up tina
of the currency. That such a schem
would greatly facilitate the means O
tie State to pay its debts through it
sinking fund IS obvious enough
!, Such an issue would probably pug
!, chaso elk or seven millions of Stat
bonds which, in addition 20 what Iii
sinking fund now holds, would con
,, stitue sum upon which the accruinl
,, interest to be Invested in other bond
,, would be SO large that the sinking
: fund would accumulate very rapid,
and enhance the value Of State bonds
and, consequently, also ia credit.
The privilege of paying half TIT
taxes in these bills would add great,
', to their credit, and consequently af
ford great relief to our people. No
, would the State run any risk if i
should not exceed the limit of 50 900,
OOO-for every bill thus issued a cor
responding value, and possibly s
much larger amount in State stock
, would be secured. In following tn.