, 1875-09-25

interest, pay tho interest in other notes, con-
vert tho interestbeariug notes into non
intorest-bcaring notes, reconvcrt the non-
interest bearing notes into interess-boaring
notes. and continue this process for nil tirno,
| and call it paying his debts, would DO set
down as an igreleemable lunatic, and every
body with n reasonable desire to rotain his
faculties would refuse to transact business
with such m individual. Mr.. KELLEY pro.
poses that tho Government shn]l not only go
into this sort Of business, but that the stuo-
tion slall be still more complicated by using
| this sort Of stuff rs currency. It ia hnrd
matter to think or write coDnectedIy about
such jumbo md whirl Of confusion, but
hero is n suggestion Of sone Of the results
likely to eosue.
To begin with. the National Banks are to
DO abolished, wiped out,-and their notes
aro to give way to grccnbacks. Wo shall
have, then, about 975o, COX, 600 Of gzeenbacks.
Here two points should bo noted, viz. II
The Government will lose ruven4,o Of abont
$1,000, 600 which tho National Bnnks now
ray in taxes; {a) Thu pledge of tho Gov.
ernincnt that the issuo Of lcgal.tenders shall
no. be more than s4oo, ,ooo, 600 will haye been
fngranuy violated, d,-provided the Supreme
Court permits it to bo done.
Tho noxt suggestion is that all Of this
ss7'0, ,oo0, 900 Of notes will 60 into o.G5 green
buck bonds. except Just enough to supply tho
absolute demand Of ths country for change.
The bonds will ba issuol in sloo and multi
PIES, and perhaps even N low as $40, and, it
may be, still lower. In that case, what would
provont tho entiro currency Of tho country
going into 3,65 bonds, and these bonds them
selves becoming currency7 Certainly every
institution md business man who had
money idle for my 1ongth Of time Of not
moro than week would convert his green
bucks into these bonds. The banks would
invost all their surplus md idle moneys
therein. A convertible Government bond at
3.G5 would bo preferred to an individual call
loau at 4a or 6 per cent. Every 81, ,00owonld
be earning 10 cents day, and every 500
ono cent day. md bo just o. convenient for
uso and in payment Of debts or purchase OF
goods OF lands rs If 1t wero kept in green
backs Of q smaller denomination. Would
not the net of conversion and reconpcrsion
be Huperauous and uselesa2 Would not 4
SO bond DO received on dspoaie at its face
va1no md Accumulated interest az readily rs
tho same amount Of greanbachs7 Would
| not tho bonds, in other words, become part
Of tho currency Of tho land, AN awkwartl
md cumbersome currency, to be st1rs, but
ono that is cmcning an interest. There would
ho the powerful inducement Of 25,55o, 600
annually. ~ this il tho hmount of interest at
305 on 500, 1000, 600, leaving $50, ,00o. 600 in
greenbncks Of smaller denomination for
change. Every man would desire to hsye
his money earn port at this vast sum,
especially If it could be done without inter-
fering with tho necessities Of his husineaa.
The affect Of this, to trace the results no
further, would be swo.fold. Firat, "a to the
Government, it wonld lose
intsfs.s s,1as' % 1'e1 bond. Il
IS, ,6ao, ,ot0
Tha only wRy To meet this Increased ia
teroat and loss Of rovonue woull be additional
taxation; md the additional tAxstion, under
our system, would have to b, pcrhnpn, $780,
COZ, 600 to afford $40, ,0o0, 900 Of additional
revenue. So far ns tie btnincss public is
concerned, tho effect would be to creato
tight money market; for, ~ long rs idle
money iB earning an annual interest Of 3.15
per cent, payable by the Government, there
will have to 10 all extra mducen,nnt for the
loaning Of money to private individuals. Ono
part OF auch III indncomant will bo q higher
Iate o{ interest anothar d demand for be.ter
, securities; both will tighten tho money mar-
ket, and make it harder to borrow than now.
/ | IL w0 pnfHna The aphiar% ft,rthrr md .,o