Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-14
In SEVENTEEN YEARS.

VIII make perfectly clear. 10 everyone VIC
viii read with attention and understand
thoroughly the plan which propose. 1t is
as follows:
The national bank currency, amounting
now to S354,OOO,OOO, should be Withdrawn
from circulation and the same amount Of
currency should be issued by the United
States Government, with the sign and seal
Of the nation. The currency to be issued
in place Of the bank currency should be
appOrtiOned, amongst the State, according to
their representation in the lower House Of
Congress, and each State should deposit
with the Federal Government its bonds,
bearing four per cent. interest for the
amount Of currency apportioned to it. This
currency appOrtiOned 70 each State shOnld
not be paid over to it, but used by the
Federal Government, or some other agency,
in buying mp the bonds of the State now
out, which shOull be cancelled and return
ed to the States issuing them. But the
bonds Of the Southern States, which are
deeply oppressed with debt, and whose
bonds are now almost worthless, should not
be bought up at par, but they should be
bought up at some rate below par, and in
order to do justice to all bond-holders, al a
rate above their present market value
which rate should be fixed by the National
Government.
If States should be entitled to currency
who are not indebted, their share Of the
currency, in order to equalize the benefits
to all, should be invested by the Fed
eral Government in United States
bonds, and the bonds, or the pro-
ceeds of the same, should be held sacred
for the education Of children Of such State.
The interest on the bonds Of the States
held by the national Government should
not 60 into the Treasury, but be paid over
to each State issuing them, to be held by
them as a sinking fund to pay of the re-
mainder of its debt-if there should be any
after the purchase Of its bonds with the
currency appOrtiOned to it.
After the payment of the present. indebt-
edness Of the States, the four per cent in
terest should constitute a sinking fund, to
pay of the bonds Of The States deposited
with the Federal Government.
This return of interest tC the States on
the bonds to be deposited by them with the
Federal Government is what is now done
with the stockholders Of the national banks.
They deposit the bonds which they own
with the Federal Government to secure the
circulation given them, and they draw the
interest on those bonds, to be used for their
own benefit.
1 propose that the States shall deposit
with the Federal Government their bonds
as security for the circulation appOTtioned
to them, and that they shall draw the in
terast on their bonds for their own benefit.
II it be right and Just that the stockholders
Of national banks should receive back their
interest on their bonds, it is equally right |
and just that the people Of the States |
should receive back the interest on their |
bOnds.
Let Us see what would be the benefit to |
Tennessee Of the plan proposed. Our
State has one-thirtieth Of the entire repre-
sentatiOn in the lower house Of Congress. /
This would give her One-thirtieth Of the
S354, 0O0,OO Of United States currency, to
be issued in place or bank currency, which
would be little upward Of Sll,S00,OOO.
This sum, at the present market price Of
our bonds, would buy up very nearly our
whole debt. And if our bonds should be
bought at 90 cents on the dollar, which is
the highest point they can be expected to
reach, it would buy up Sl3,OOO,OOO Of our
bonds; these would be cancelled and re-
turned to the State, and in place Of them,
we would have l1,S00,000 Of bonds de-
posted with the Federal Government,
bearing iOgI per cent. interest,". This
would be a reduction Ia the principal Of
our debt of S1,200,OOO, and a saving in in
terest Of S30S,OJO peT annum. And the
four per cent. interest on the bonds depOs-
tied with the government would not, as
now be P2ia q our c-rditaTs witnO0t re-
ducing our debt, but would be paid over to
the State as a sinking fund, to pay of the
principal of our remaining debt, which
IA
school fund debt, This four per cent. IN
terest would amount to Si72,OO0. COnse-
quently our entire debt now owing would
1 De paid in seventeen years, and every year
| there would be reduction in inc Interest
/ to be paid on Gus dent OF SIS, 800, from the
interest Of the preceding year. After the
payment of our present debt, the four per
cent. interest could be applied 10 the pay
ment of the bonds deposited with the Fed
eral GOyernment-prOvided that their pay
ment should be called for.
These wonderful results would be &C
cOmplished for our State-nOt by repudla-
ton, or ANYTHING that has the semblance of
reputation; but solely by giving to the
| State the benefit Of a certain amount Of
national currency, which benefits are now
| enioyed by the stockholders Of our national
/ banks.
But shall be net with the objection
/ that the plan proposed is impracticable,
| that it can only be accomplished through
| the Congress Of the United States, and that
our State Legislature has no power to eff
| feet its adoption. A State bank system Of
currency can be established only through
| the action of Congress, for it is absolutely
necessary that the law Of The United States
| imposing tax Of ten per cent. upon the
| currency Of State banks should be repealed
before il would be safe to establish such a
bank. And yet such bank has numerous
advocates in this Stale, and serious efforts
are being made TO establish orc.
Now, the adoption of the plan propose
| is far more probable than the repeal Of the
ten per cent tax by Congress. The very
proposition for its repeal and the re-estab-
| lishment Of State banks would create alarm
| throughout the nation and crush the party
who should propose it; for there Is one
thing that l conceive to be beyond all
| doubt-that the people Of the Untid States
/ are now indissolubly welded to a national
currency and viii never permit the revival
ola State bank currency. The Democracy
of Tennessee should recOllect that the
| question of the currency is the great queS-
| ton which will occupy and divide the pO-
| litical parties in the future, and unless that
party adopts a system Of currency that rests
upon impregnable foundations, and COM
mends itself to the wisdom of sound hnan-
eial miCds, it viii work the ruin OF the
party. The favOrite system of currency OF
| the Republican party is that Of the national
banks. Let the Democracy, in opposition
to this, favor national governments system
| of currency, and incorporate into that sys-
TEN provision that will pay of the debts
| Of the States without the drain Of a dollar
upon the treasury Of the States or nation,
and their policy viii appeal powerfully to
| the popular heart and insure the victory OF
| the party thrO IghOut the nation.
Already part of the system which
/ prOpOse-tbat is, a change Of the national
| currency from a national bank to purely
| government currenCy-has q strong hold
/ upon public sentiment. L believe that the
| sentiment Of almost the entire South IS a.
this time united upon it. The Democratic
/ Convention Of Indiana, last summer, made
this a plank in the platform Of their party,
and believe that other Northern Demo
| cratic ConYentiOns did the same. For the
past two days, sixty delegates from twelve