, 1875-12-10


dcmrtion bonds precisely upon tho same
Status NJ tho greenbacks viz, :: That they
shall bo receivable for nil dehta contracted
1rf"r to Jim. /, 1871. With this character
thora will 10 no hesitation OIL tho rart Of tho
l!o'ders OF grecnbacks to convert them INFO
| tho redemption bonds and draw tho interest
thereon. aroenbaeks having been retired by
! this process, tho redemption bonds viii be
| used In the payment 'of all debts contracted
prior to Ian. !, 1877, will he hold in reserve
| by the banks M the greonbacks now nre for
tho redemption Of their old notes, mud will l,e
| n circulating medium at what they nre worth,
| tile demand and use for which will grntlnnlly
| decrease from Jan. ], 1877, on mud after
which all dcbta viii be contracted md pay-
! ab1o on gold standard.
.. II there ronain at tho end Of three
years-riz.: Jan. l, 1s7a-auy greenbncls
which have not sought conversion In tho 3.ti;,
redemption bonds, let them be redeemed in
gold at tho Treasury according to tho promise
of tho existing Law. Tho strong probability
is, that tile amount Of unredccmetl grccnbacks
will 10 80 small TINT the ortliuary specie ac-
cnnniation in the Treasury will bo equal to
their redemption. and it will not DO neccs-
aary to obtain gold for redemption purposes
by tho sale Of 9 per cent bonds. Tho nttrnc-
ton to exchange greenbacks for tho 3.G:3 re-
siomption bonds {tl,e Inter being 1cgal.tcpaer
as to oil old dcbts) will bo SO great Tint bank
ers. railroad companies, merchants, all finan-
cial institutions and business enterprises
which keep greenbacks as reservcs or for
dividends, or for future payments, will con-
vert their grcenbacks on llantl into redemption
bonds as rapidly rs tlIoy cau.
4. The result Of this combination will be
TINT practical resumption will tlnte from jan
l, 1877, after which all contracts and ex-
changes will be on specie basis. Tho old
dobts will bo paid in the legal-sc,ltlcr rclemp-
ton bonus, which will be receivable for tho
new debts only for their currcnt valuo in
gold, as English conso1s or my other na-
tionnl obligations bearing law rite Of intor-
est The Epccie will come out ~ circulating
medium in proportion to the demand; rriccs
will DO adjusted accordingly; md gold can bo
retained aud SECURED in any amount eqnal 10
tile actnal demand and necessities therefor
There will bo no longer baacr currency to
drive it out Of tie country, and it will como
from other countries to tho extent that NO
lavo commodities TO offer in exchange for it.
8. There would be by this plan no breaking
up Of tho National Banking system as it is
now organized. Tho ba,lhs would redeem
their notes issued prior to Jan. l, 1877 in
the redemption 1egal-tenler bonds; aftor
TINT date their reserves would be in gold or
gold bonds, instead of greenbacks as at pres
ent, and they would only issno notcs to tho
extent TINT they would bo ablc to tako caro- of
them, md in answer TO any demand TINT
would mako them profitable. These notes
would bo secured then as now by the tlepost
Of United States bonds, and tho only differ
once would be that tho private capital Of tie
country instead Of tho Government credit
would furnish tho circulating medium of this
country as in tho rest of the civilized world
whcro paper money is ut par.
Tho principal advantages which this plan
bus over the plan as stated by tho President
In twofold, viz: ~ 1t snvcs tic country
the payment Of larger ratio of intoreat to 80.
euro tic gold for redemption in lump, md
also tho arrangement wAicl, tho Withdrawal
Of largo amount OF specie for long timo
from the markets Of tho world would cause 3;
and (2) it gives no sudden shock, Causes no
perceptihlo disturbance, and does not require
the present debtors to pay from 18 to 20 per
cent more in the tlischnrge Of their obliga-
tions than they received in value at tho timo
their dobts wero contracted Thur Tie groat
objection to resumption is removed, and tho
common boon of uniform and fixed cur
rency obtained without oppreasing one class
for tho benefit Of another. For the rest, it ts
simple and cary modification Of the plan
proposed by the President; and, in tlefa,llt of
my reasonable objection to it, would DO bet
ter for first trial tlnn tho Secretary of tho
Treasrry's suggestion in fts original shape,