New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-12-25
ANOTHER Plan OF RESUMPTION.

REACHING SPECIE PAYMENTS by MEANS or COM
POUND INTEREST NOTES.
To the Editor Of The Tribune.
SIR: La commenting editOrially, on Oct. 1G,
upon MI McCulochs letter of Sept IL, wherein be pro-
poses remedy for surplus paper money troubles you
say:
Itis matter that has been trfed with long enough
md now since Ohio election has proved that the rag
money mania has passed Its crisis prescriptions Tor
complete restoration to health Of the body polite are In
order
Mr. McCulloch would say TO Congress: make legal
tender notes convertible into or 42 per cent gold inter
est bonds and after JAM 1873 United States notes
shall cease 10 be legal tender" His additional PROPOSE
ton that banks may be allowed TO fill the vacuum, If
there be any, by increasing their issues is unnecessary
az they have that power already While Mr. MeCulochs
plan may be theoretically correct, and might accomplish
the desired result without damage, still his experience as
Secretary OF the Treasury when he, under authority re-
tired four millions of egal-tender notes per month";
ought to have convinced him that tho sensi-
tiveness OF capital is not less in degree
than the jealousy and tmidity OF the great
debtor class of mercantile and commercial men, ma
iorty OF whom have taken their places az representa-
tiycs OF their class since gold and SILVER ceased TO DC
the money Of the land, and who have been educated
more or less in the belief that return to specie pay
ments must be made by long road or be disastrous TO
their interests This being so, say bring our friends
along with U.s. and let us make haste slowly" This Is
my pan.
Let Congress empower and direct the Secretary OF the
Treasury TO make monthly issues Of c0mpoundinteres
notes In exchange for the present legaender ISSUE the
new notes issued by the Treasury Department Ia
the business old notes paid III, To the
highest bidder or, under impartial rules, to all appl
cauts Let the issues amount TO five millions per
month to run three years. bearing 3.65 or per cent
interest 10 DO legal tender for their face value with
principal and interest payable at maturity at the option
of the Government, either in coin per cent bonds
similar in character those being negotiated by the
Syndicate In the adopt of this plan the necessity for
additional currency viii be met, Mr. McCuoch pro-
Doses by the OF currency by the National
hanks This may appear at first glance long
road TO specie payments, hut 10 VIII not prove TO
be So for when the first step Ii taken, and the naon
has really started the road every business man and
banker will do something toward putting his own house
In order and long before the present United States notes
have been succeeded by the cmpoundnterest notes the
latter will heat par with gold, and gold and silver viii
into The daily added value 10 the compound
interest notes will quietly cause TIER withdrawal from
use The funding process of the notes nj maturity will
slow Will not be felt and this great adyan
other scheme for funding the greenbaeks
will he felt until all danger passed. that should there
great financial disturbance the compound Interest
notes be brought out to do duty rs currency.
am that tho II compound interest notes
means OF retiring Issue Of currency, and thus
accomplishing a return 10 specie payments, has from
time been suggested by able financial writer's,
but have any plan for their ultimate retire
ment Ike tho here suggested and IL very likely
changes Ia tho detail of this plan might be made with adj
vantage. add few facts taken from past financial