The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-01-07
a New Currency Scheme by a Hard
s.s mi u. Money Man. :" tssi1<

A New Currency Scheme by "a Hard
,:; ri! Ut Money Man. :" tSiA1<
SENATOR BooTH'sPLAN--AE INTERCoSvERTIBLE
1855 GOLD BoHD-GREENBAcRs AND NATIONAL
BANK-SoTEs TO BE PUT OUT, OF TEE WAY. !, |
Io letter by Senator Booth to the Springfield
I am moved by both the Republicans mp.
prevail and criticism Of my recent currency
reform suggestions lin the communication
signed N. B." on the 9Th ultimo) to unfold
more fully the principles and probable opera.
ton OF the scheme there briefly outlined.
The pith of that communication was that $50
gold bond interconYertible with paper cur
feucy at central GoYernmentagen with
an alternative privilege TO the Government
Of redeeming its bills In gold instead Of the
bouds, would be likely to operate slowly but
effectively in restoring our currency to the
standards Of cosmopolitan commerce, and
furnish. in simpler, and cheaper, and even
more effective form than the national bank
ing system our whole supply of paper-!m1oney..
Here, then, are two points Of agreement
reached by the common experience of civil
ICED commercial nations: ,..4,q
First, that gold is the most accurate re.
preventative of value, and therefore the fac:
tor into which all other values are ultimately
resolved to determine their relations.
Second, that credits may be used as money
and facilitate exchange. j. 80
Each nation determines for itself what
form Of credit to use. 1t ought to be the
best-"as good as gold" If possible. :, =;
have said that our. present banking sys.
te m was in many particulars the best we have
ever had. 1t is SO because it is, based upon
| the best credit. There is absolute security
that bauk-notes will be redeemed. Re,
deemed In what The notes of the United
States. It lis not the credit of the banks
| which makes their notes good and gives them
uniformity Of value; wherever they circulate
but the credit of tue Government. -. =,
| Now, In political economy as well as. in
mechanics, all unnecessary machinery is q
| loss Of effective power. Friction is to be
avoided as much in one case as in the other.
Examine the practical working Of our bank
ing system and see II there be not some un-
necessary machinery and waste of power.
-" ALI this decentralization from the first
establishment Of the bank to its liquidation
to get back to the United States note which
could have just as well been issued directly
in the first instance 7,
If 1t be necessary, by all means let Us put
| fifth wheels on our coaches, devise engines
to run engines, invent CRATE to warm the
fire, aud grease water that it may run down
hill. g...sS.5
It is constantly said that the Governme nt
ought not to engage In the business Of bank
ing. 1t is engaged in the !" business Of
banking" and undertakes to administer
upon the assets Of banks In a manner which
Is Improbable and unnecessary.
The issuance Of bills of credit to circulate
as money Is not s function Of banking but Of
Government, and no bank or individual Is
permitted to exercise it under any wise
policy except by the, consent and delegation
Of the Government ,...;s ...H 49,.
at the risk OF becoming prolix, let me re.
capitulate: e.,.,ra
i. Greenbacks will be worth as much as
the bonds into. which they may be made con.
yertible.; ~ a.s.s
2. Makisg bonds aud greenbaeks intercon.
yertible will give the bonds additional value
by making them desirable for large class OF
Investments which would not otherwise seek
them, and by as much as Is added to their
value by this quality the interest will be re-
duced which the Government ia required to
pay in order to bring it's bopds to par with
gold. rs. ..fs l,atl ..s.i ,r,z.ss- u. !,
8. AS the English consol-a perpetual
three per cent. gold security-is worth So,
an American gold bond on long time or per-
petual at 1856, With the added value Of the
interconVertible clause, would appreciate to
par with gold as its credit would become
established. which would be as rapidly as the
country can return TO the specie standard In
Justice to existing contracts. ~. /
A <srfo oh n
the bends y ould enable the Government
credit to circulate as money in just such yell
ums as the business OF ahe country would
demand, without the Intervention. Of the
|cumbersome, unne cessary and ex expensive nias
chinery OF banks OF issue, whose notes have
no value s2eeps-4laat -ef--ths Government
credit. ~ s.tf - ss.ssis 4
8. There would be no occasion for the Elk.
erGise OLA power of doubtful stiiutionali.
IL ard dangerous policy in the creation OF
corporations by the General Government. /
O.. When Government notes appreciate TO
the specie standard, the legal.tander quality