, 1875-04-15

THE CHICAGO
'asge. or nearly ~ 1arge, a. gold renervo would
| The COLO IN tho Bureau Of 1o1om7ton wuufl bo
like that In tic ir.ue do ar.rons Ut the l3snx Of
England, tf.e uationAl reserve, sn,I would bo
large Or small .ma', precisely III sympathy With tue
| 1,storo leaving this nubjcct, would like TO
[ add few words oil
| An ANTICIPATED OBJECTION
10 mY stron4 recommendation ot lho Enghtli
In England. aud II IN vol known that tlis bank
Of ,Huo has hsd to Jnn 10 the tcof of tim batk-
Ing department, practically. by buying fr9'n It
Go'ct'mens securities with tank-uot:s' IN no
she ]chst inconyeniouce to the iar,!o
department, tho cuin sesorvo having Invariably
been tnoHt ample. TIC gigantic banking
del artmcnt Of tl,c Bank Of England. which iegu-
| known IN hmerlcn, Is really rather 6uurco Of
woaknens Than OF strength in limos of panc., In
the Unttsd States each bank - expected 10
| maIn sin an adequate tfeerru to meet Its ow'1
liabilities, whereas, In England, the ent're na-
tlonal tclerve to lncct deposlts l. h.ll III tho
bauxinR department Of Ills uabk Of England.
The lolnt ntosE aud private banks, ~ well ..
tie uoyotument, keep tber dcpo4ts witn .Le
institution ID expected to carry Inc uatun through
tho crisis, 1t will te found, By reference 10
ttattbtics, that tho actunl caah reserves hcla by
the ba!ks III the United staies are much
| EngllHh banks; indeed. tho very meaning of tho
torn is diffcrcut III lbo txo countries. 4 banks
rcsoryc tu tho United seates. sushns Legal
tsn1ors or gold; Whereas, tn England, bnnks
and negotiable eocuiisfee Of various kinds, AZ
| available rescsr%s, although. When nbsu, ,uto!y
needed, they tnlst all bo sul1 for lauA con-
| sortlba into e4in.
] 1 14ux4 4 ali A.n.x
Of tho question: becauso my observations hayo
| reference TO banking rather taan currency; and
1t 10. II, my judgment, most unfortunate fer ;
country whsn tile departments ef banking mud
freely admit that a better mode Of providing =
bahx-note curioncv could not be devised tnan
rour National Bank-note asnues. 1hoI arr bastd
Oh precisely tho BAne securities thai tile Governs
mat currency would be based on, Lut the profit IL
derived by tauks instead Of by tic nation. THIS
currency, however, may exist ID perfect 1ara1ouy
with Government coin-notca 10 rrpiaco tho pres
cnt legAl.tonden. I nlust OWL that full 10
| comprehend yonr objections t. such MI tasuc
| II yuu welo M indatlun!At. or MI atyorate for
| IN iucopyo:tlble e1rEency, should not be sur-
ptsaod at your oppositlon but you surely must
Adtnst that icgal-endors cunvo. slblo lnt3 gold un
demand would, in case Of tho resumption Of
tpec1e-pnymcnts, 10
| oHEAT ruDL1o cQsTExIEscE;
that they would, to whatever extent thor cirou-
latod, eeononl'ze tue use of gold and that thcr
| would 90 ubeu ~ Icecff6d NY tue N&slonAl UAuk3
throughout the United BIates. To whatever or
tout IT might bo found s1fo to hold nntional 30.
Gu tiles, IN additlou to The CON required ~ meet
| the demands of tho iloido.a Of bicil notes, to
That extent tlesa wo,i,d te prons to thu nation.
| i. ulScxs.
| A PLAN FOR sPeo.E.BAsts SUGGESTED.
| 70 the kdltuF a 1he c..istsso 4rttun&:.
| have read With much interest the 'ettess Of
| Sir F. Hlncks upon the currency, aod your edi-
toriaIs thereon. Wo all agree. take IT. upon tbs
| question OF spoc:c-basis. Upon th!s point, It
aOema to me, no difference Of opinion Gin exist
between those who have studied the queasion Of
anauco rs D scsenco. Tho ue1t thing to arriyo
at Ia method by which spocie-resumptlou can be
obtained without dc:rlnent to tho busincss aud
Industrial Interests Of the country. Tie lss,iug
Of the circulating melfum OF tho country by tho
National Government upon specie OF any basls
might as wsl bo dismissed a. impsacstcao1s,
first as last, Tho id.a OF an institution witbou.
any capital doing baulsiug businoas, ts simply
absurd. and Government supnortai by taxa-
tlon OF .ha people has no capital Hhaterer, III
the true sense Of tho void
MY plan woald bo for the Government to fund
tho "groc . back " Indebtedness into t!a,e
bond drawing interest at. say, or ~ per csnt
per nunnln. Tl,ls oan be dune witholt ihe uao
OF a dollar in gold by tue Government, and, at
tia aamo ttme put this clAes Of Government In
deb.cdncss IN form for apal payment. Tits IL
tho ftst stop.
Thou amend tho present National Free-Dank-
Ing Aot 60 ~ to make Natisnal.Daox notes .
legal-tcnder between the reople, but redeemab'
In gold at tas bank Of issue, Similar to tho Dauk-
of-England notcs. 1u tho ordinary transaction
OF business ''acr"sa tho oountcr," u reserve Of
25 per cont In gold woall bs sutIloians to re-
deem all notes psesentcd for REDEMPTION. We
ara mot here with the question: uuw arc the
oau*s to supply tbemsoiyaa With gold,-and now
question, soaaansls 20 diIisalt t ot soiu. a
t.oa at frnt glatcc. IL really rcry simple
anl cay. Iha snpply ot gold. unlike a!mos!!
to thc demand. Why2 Deca,,te The destruction,
bv consumption er waste. Of gold Is losa th.a
auv other article Of produce. Ia MI CIVILIZED
countries Except ours, reEhans}. the snEpIus
woa'th-that "a. tbs sasiagu Of tue peon!e--oon-
bankers OF tho United States become bcsrow orn
or pnrchaeers Of gold. With gteenba4ks 10 tho
amount Of Is per cont Of tller circulation, l.t
them purchase The Notwithstanding bonds, and
wi;h tlese bonds 50 intothe markets u the would
aad exchange them for gold. which they
could 1t par, Of nearly 90, without difficulty.
Once tho spccie-basia Il eet ablishsd, Ia thus way
there will be no further troubIe from o scarcity
Of tho precious mctAls, uulcss for once history
fails to rcpelt tteolf. aud tAa inexosabls lam Of
supply aud demand losea It's reputation and in
luelne. Provision colld bc mAds Tor o1chaua.
ing notes for gold ht Tho banks, N exeeas Of tile
limit allowed In their honded security and thu,
create solf.rcgulatlng axchauge e.maskos as ro|d
or currency might be nccdsl.
The above 10 the outline OF = plan which I
believe might b. perfected aud put in ALapo to
moct Tho financial wants OF tho country.
IWi not stop 70 answer thu objootions which
will be raised to tlls pan by ahoes who deuounco
tho Nhtlonnl-bank system ~ "legalizcd rob-
bory," and oppose tile funding Of Tia grocp-
hacks In tho Interest Ut "economy." PAPER
"money," based on, nothing, has rccullnr
charm about il. which aluays has, aud siwayn
will, capture the Judgment Of atncore aud honest
unredecting men. We mav vet pay tic penufty
70 TO- oftcn PAD before for pF.eclng this theory;
pae tt u 70 10 hoEed Tint. 10 tho destruction OF
added. Ycurs truly, Joun II. Amin.
SAORT-uORNS.