The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-02-12
SENATOR BOOTHS VIEWS.

| aldinc.
SENATOR BOOTHS VIEWS.
Considerable attention has lately been
given by the press and politicians 10 the
views OF Senator Booth, OF California, on the
currency question. His plan is simply that
of Judge Kelly--to have an exclusive green.
back paper currency, lnterconvertibie with
3Gj interest bearing government bonds.
cent that he would have both principal and
interest of said bonds payable in gold. In a
long letter to the Springfield, Mass, Repu5!t-
cun Senator Il. thus sets forth the argument
in favor of this PLAN
BY this time you will acknowledge | am
enough of bullonlst to suit the "s,raightcst
of the sect" 1t does not follow, however,
that because gold is necessarily the worlds
money"-thc material on which labor can
most easily mark the units OF value Tor the
purpose OF universal measurement that II
should or can be made the circulating me
dium of the various countries oil the world
Perhaps it follows, for that very reason, that
it should not and cannot be. Ii il were album
dant enough to circulate through all the
channels OF daily business III the civilized
world, it might be so common US not to be
precious enough to perform It's great oilce OF
| final adiuster. II it could have met both these
conditions am enough Of believer in the
Survival Of the fittcst' to suppose it would
have been adopted for both, by common con
sent, as certainly as 1t has for one.
have said that our present banking sys'
tenn was, IN many particulars, tho best we
have ever had. 1t IS so because il Is based
upon the best credit. There is absolute Sc
curity that bank notes will be redeemed. Re-
deemed in what ?-thc notes Of the United
States. 1t Is not the credit Of the banks which
makes their notes good and gives them uni
t0rmiry OF value wherever they circulate, but
the credit OF the Government
The Government could only have two Oh
ccls in issuing grcenbacks; urst, 10 obtain a
loan without interest; second, 10 form a credit
which should circulate us money
| A national bank is OrganlZcG; Il deposits
$40 ,00U in United States bonds and $500 in
yrecnbacks in the United States treasury,
and receives 100000 in bank notes signed by
the United States Treasurer. upon which 1t
agrees 10 pay The Unitcd States one per cent.
per annun. In plain English what is this
| but the bank borrowing the credit CT the Gov
ernment for one per cent. per annum and
having security, with fair margin, upon
which security the Government pays the
| bank five or SIX per cent; that Is, the bank
paws the Government upon one form OF lis
credit one per cent, and the Government pays
the bank upon another form of its credit five
or six per cent in the same transaction and
that not Tor one year, but while the bank
charter continues.
| Now If the first object-a loan without in.
terest-controls the Government in issuing
the grcenback, that Is defeated by this opera
ton to the extent OF all bank circulation.
| sl,. a 10 tnr
bank note never can be better than the green
back in which II is payable.
| Now suppose tor any cause the bank goes
| into liquidation. The Government sells the
securities, and, after rcdeeming the bills OF
| the bank in Government bills llOr which rs
yet there is no plan OF redemptionl pays over
| The residue 10 the Stockholders. al this cir
cumlocution from the first establishment OF
the bank to It's liquidation 10 get back to the
| United States note, which could lave just as
well been issued directly in the first instance.
Ii seems to be unprecedented ON the one hand
| that without the banks al issue there would
be deficiency of currency. aud on the other
that without them the Government would
"inflate" the currency. Suppose the Govern
ment today could substitute greenbarks for
the bank notes in circulation, the volume OF
currency would DC the same, the quality no
worse Do you fear there would be failure
of the necessary machinery for the proper
distribution vi currency 10 meet the wants oil
the people and the accommodation of bust
uessy Have the receiving of deposits, draw
ing exchange and lending Of money suddenly
become So Improbable or irksome q bust
ness that no one Will engage In ii without
the added premium 81 power 10 issue
money?
Suppose the substitution made, and 10 NOR
row The currc.cy should be made convertible
into a perpetual $50 gold bond, Tuuld moi
That improve the currency io the value ri
such bond, Make the bond inicrCunverii.
bile with currency, Will not that give IL addi
tional value by making il the receptacle OF
the money of estates OF dcceGents and bank
1 rupt> usder administration and giving il a
power of absOi bling money temporarily idle,
out wanted ION CALI Is there an appTeheG
sion that it, absorbing qualities would be
come 80 great that The currency Of the cOun-
Try would rush into Il and disappear from
circulation. That could only happea wh.u
such bOad was worth premium in gold
then the gold of the world would seek i a
an investment, unit! our six per cent bonds
could be exchanged for SOS, u result ! would
contemplate with very phIlUsoph.c cUupos
ure, even ii IL were nearer than | anticipate
while the catastrophe Of an entire disappear
ance of our currency would be eficciuslly
prevented by the option Of the Government
TO redeem II in gold When that per.od AZ
lrives. men will take their gold 10 the | nited
States Treasury and exchange it for Govern
. meni notes on account Of their superior con
vcnicnce.