The sun. [volume] (New York [N.Y.]) 1833-1916, 1875-10-15
A Proposed settlement.

A Proposed settlement.
Our Government issued the greenbacks
originally to carry on the war. II owed
the soldiers and sailors and contractors
vast sums which 1t could not pay at once,
and 30 gave it, promises to pay in various
shapes. Some were in bonds drawing
interest, some in certificates of indebt-
sdness, some in notes payable on de-
mand, the latter being the greenbacks.
II has paid all It's bonds that have fallen
due, and a good many others not due 1t
has paid all its certificates of indebted
ness. 1t has squared up all It's current
floating Obligations of every name and ma
ture, and doeSpot owe anybody any debt
that is past due; with just one exception,
and this Is the greenbacks. These green
back obligations ought to be paid just az
much rs any other obligation OF the Gov
srnment. II they were paid. the Govern
ment would be fair and square with all the
world, aud would owe no man a cent ex-
cept on it's bonds, which are worth q
premium in gold, and which no holder
therefore asks to have paid of. The
finances of the Treasury would thus be
perfectly easy, and il could hold its head
and unimpeacbable before the world and
IL would not be long before this state of
things would enable il TO borrow money
~ cheap as anybody on the face of the
earth, and thus reduce its annual interest
payments much more than il saves now by
keeping out the ereenbacks Its real pecu-
mary interest would thus harmonize with
its plain duty.
To do all this, il is quite unnecessary 10
pay any gold TO anybody, or to go through
the farce the Government has lately been
engaging in, of heaping up I'm various
quarters tons of silver to commence re-
deeming the fractional currency. All that
IA necessary Is that the Treasury should
give notice that II anybody has got more
greenbacks than he can probably use in
other ways, the Government will take
them up and give its note or bond on in
terest at - or per cent for them on
presentation. When this is done, the whole
problem Of resumption is solved, and in
the course Of time, without haste and with
out disturbance specie payments will
come about of themselves. This is all as
plain a. a pike staff TO everybody who
gives any attention to the subject.
But if the thing is so simple, and the way
Il 80 plain, why is not the plan adopted?
II is said ia answer that If you begin to re-
move the greenbacks from circulation,
you will create a scarcity of money and the
rate of interest will rise. But the truth Is
the rate of interest will not rise above
what the Government pays. The moment
any borrower will give more for the green
back than the Treasury pays, that moment
the holder of the greenDack Will turn to
him and lend 1t instead of going to the
Government to exchange ii for bond.
The whole thing can be controlled by
putting the bond NJ q low rate OF interest.
Under such II limitation the greenback
would be redeemed only when there was
Nh excess of cheap money, and when no.
body would feel its loss.
III this way we should creep gradually
but steadily back, by noiseless process,
TO n sound and stable circulating medium.
II would bring ne back to specie payments
by an almost impcrccptible process and
without requiring any Of the Formidable
and cumbersome preparations which are
dreaded n necessary to resumption. The
amazing folly of the Government, in its
recent and current operations to redeem
thirty or forty millions OF fractional cur
rency, by accommodating silver which no.
body wants, and whose attempted re-
dempton Will inevitably end in confusion
and failure tends TO create and spread
those very approximations, and so becomes a
stumbling block TO the very change which
the Secretary Of the Treasury wishes to
accomplish.
Why will not the financial department
sndeavor to grasp this question in its en-
hrety and go before Congress at the next
session with a plan of redemption such
n we have ndicltedi If IL does not like
one rate OF interest, let it propose another.
A rate can be found which will neither
unsettc values nor reduce the volume of
currency njurously or even perceptbly,
and yet which will fix and steady its value
and put the country on the road to Il
sound financial condition.
We consider the current discussion, on
one side and the other, on the pros and
cons of initiation and contraction to be to
agreat extent valuele-s. The whole coun-
try wants a sound and stable currency.
The question is how to develop 1t out Of the
the settlement of that question by an open
contest between imitation and contraction.
There has got 20 be compromise Of
opinion aud judgment, looking to the final
goal OF specie payments as its end. But
the greatest care ana discretion must be
used as to the means We ought To have
wise men enough and statesmen enough to