Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1876-06-17
COIN N CURRENCY.

=, question. AS our readers will perceive
the positions taken by Mr.. Akers ar
a those which this paper has heretofor
'g held and advocated. with the exception
OF one point. in which he goes furthe
than we have done, i. e., the inter-con
vertibility of the currency with bonds.
n 1t is an utter absurdity to talk of al
!, absolute return to specie payments il
1879. and it is just as absurd to propose
to demonetize gold and silver, ant
make gre enbacks the only money o
h the country. We must have gold ant
# silver, the recognized money of the
W orld, and we are just as imperatively
compelled to have treasury notes. o.
some other currency. based upon the
credit of the country. The democratic
party can be consistent with its past rec
ord on such a platform. The great
evil of our present currency is that il
has a lie printed upon it. Let this be
changed, making the treasurynote issued
in lieu of it receivable for dues to the
government, and the currency OF the
country will Immediately spring up to
par with gold.
The method whereby it is proposed
to create a new currency, equal to com.
would, without doubt, be entirely eff
fective. This method makes the new
currency inter-convertible with govern
ment certificates of Indebtedness. 1t is
clear, therefore, that the value of the
currency could never fall below that of
the certificates, and again as these GER
tiicates, are to bear the same rate of
interest that makes a government bond
worth par in coin, it is equally clear
that their value could never fall below
that of the bonds. 1t Unnecessarily follows
that the values of government bonds,
certificates, currency and coin, under
the proposed system, would be precise
ly equal one to another. Il II
The advantage resulting from such
al equalization of our money and cred
its would be immense. By reducing
the interest rate on our bonded debt to
the lowest point that would make our
bonds worth par in gold we would save
not less than N and a half per cent
per annum, which on 81, SOC, 0OO. 900
would be $19, SOC, 900 per year !; and
then by bringing up the value of our
currency to the gold standard we
would save about SO. OOO, 900 more. and
finally by substituting treasury notes for
national bank notes we would save $22,
600, 900 additional. The grand total of
these savings amount to the enormous
sum of $50. SOC, 900 gold per annum.
The issuance of new currency by
the United States, of equal value with
gold, would have the further effect of
forcing all the gold coin in the country
from It's hiding places into active cir
culation. This would add some $500,
600, 600 to u present circulation, thus
greatly stimulating and reviving the
PROSTATE industries of the country.
1t is proper to notice. in this conuec-
ton, that the proposed system would be
essentially selfadjusting. If the gov
eminent should issue too much of the
new currency the interest rate would
soon fall below that of the government |
certificates. in which case large holders
Of currency would convert their surplus |
into certificates. On the other hand, if
the government should attempt a con-
traction of the currency the rising in
terest-rate therefor would bring about |
an immediate conversion of certificates
into currency. Thus the amount of
circulation required for legitimate bust
ness purposes would be maintained at a
healthy standard, and no undue expan-
sion or contraction of the currency from
any cause whatever could possibly take
place.
1t seems to us that the adoption Of this
system would effectually dispose of the
vexed question Of specie resumption, by
removing the only ground upon which
such resumption is demanded.
A bill of credit. made a general legal
tender, and put forth by the United States.
with the ''promise to receive it at its face
value in all dues" would. in many re-
spects, be preferable to gold coin, and
in point of fact could readily be exchan-
ged for gold at par, if not at a premium.
As we have explained IN several edi-
torials before, this system, though new
in its application, is not new in theory,
nor wanting in Endorsement by one of
the ablest statesmen of a former g-ner-
alton. During the debate in congress.
in 1887, on the subject of finance, Mr..
Calhoun said:
Mr.. President: 1 now undertake to affirm pos |
itiyely, and without the least fear that I can be |
answered, what heretofore I have but suggested,
that a paper issued by the Government with the !
simple promise to receive 1t liz all dues, leav-
ing its creditors to take it or gold and silver at
their option, would, to the extent that it would |
circulate, form a perfect circulation. which could |
not he abused by the Government"
In a speech delivered September 10,
1887, he said:
lit may throw some light on this subject to
state that North Carolina, just after the revolu-
tlon, Issued a large amount of paper which was
made receivable in dues to her. 1t was also
made u legal tender, which of course was not |
obligatory after the adoption If the federal con- |
stltution. A large amount. say between four
aud five hundred thousand dollars, remained in
circulation after that period. and continued to |
Circulate for more than twenty years 1t par with
gold and silver during the whole time, with no |
other advantage than being received in the reve-
nues OF the state, which was much less han
500 600 per annum."
1t will thus be seen that the system
proposed by Mr.. Akers, has, In it's main |
features, stood the test of experiment,
and that, too, under circumstances far
less favorable to succeed than those I'M
der which it is proposed to try it now.
The new currency of the United States
would have the advantages wei that of
North Carolina in being made a legal
tender by competent authority. 1t would
have the further advantage of being
quail to gold in the payment of duties
on imports, and it would be inter-con-
vertible with Government certificates of
Indebtedness worth their par value in
gold, and being a Government credit, it
would be backed by the sovereignty of