, 1876-03-24

l
hnd their way into the bonds, and tho bonds
aud grcenbacks would have n vniuo in coin
proportionate TO that Of other bonds, and no
| moro. The greonbaoks would 10 drawn into
| these bonds and held thoro by tho forco of
the interest thereon. Those bonds would
| circulate ns clun,sy kind OF currency, and
there would be no other currency. Noboely
| would prefer non-intercst- bearing grocnback
to an intorcat-boaring grcenbaok, for tho con-
vertible bonds would in OBJECT bo interest
bcaring groonbacks. II bnnkcrs, for the sake
Of small change, should surrender 3.65 bonds
! and tnko currency, rs soou aa they paid 1t
out 1t would fall into tho lands Of those who
would Gtraightway exchange II for bonds
3fr. K1So falls into singular error when
he says:
| Among tho nrss tssuea Of greenbscfs thess were
So COO that differed from tho present at n one
particular thst H. ihey tse receivable for duties on
imports, anu tfosc no ase not. consequently, when
gold uaa quotsd at a1o theao {Go quoted
:s0 or, In other words tbs gretnbAckA that weso not
receivable for duties worth IS cents on this dollar
IN gold. willis tho gsccnuacts that wars ruceyabs for
dut!ca wero at PAR With gold.
The thing that kept that issuo of Treasury
notes ct par was the fact Of their being my
ablo on domand in coin at any Of the Sub
Treasures. Thoy wore all speedily acnt
homo for redemption either in coin or duties,
and were not again roissued Tho Govern
ment could not koop them in circulation, mud
the experiment was abandoned.
Tho &aluo Of tho present greenback is indi.
rccty increased because It is not receivable
in payment Of duues Tho entire importing
mercantile class Is interested in keeping tho
grocnback as near the valuo in gold as posi-.
bic, because tho greenbncks hayc to bc sold
for coin to pay duties, to purchase imports,
md to pny foreign balances. II grconbacks
be receivable for duties, then tho only eGect
would be That mcrchants would pay tho Gov
crnmcnt ss, so, IL, or GO cents duties, wloro
they now pay 100 in coin, md cnch nun
would be interested in having greenbacks ro-
ducel in value as they are now in keeping
TINT value up to the highest point.
Tho demand for gold to pay for foreign
balances on imports would continue. An
other mistake Is in the assumption TINT tho
only market for gold is to pay duties, md
TINT, If duties wero payable in paper, the
product Of tho gold mines would be unsa1-
able except ut such prices rs tho United
States Government would give for it. Gold
has market as wide rs commerce and civ
ilization. It docs not accumulate or flow to
points where there is no demand for it, but
naturally seeks thosa countries where there
is both tiso and demand. Reducing tho de-
mand for it has merely tho effect of forcing
its cxporsation; increasing tho domand for
gold will have the effect Of keeping It hcro
mud drawing mora.
There is hut ono way to maintaln credit
public ind private, and that is to pay oil
debts according to contract. A nun cannot
maintain his credit by exchanging ono ire
deemnblo note for anothor, and, as it is i'm.
possible for a Government to keep its irre.
dcomablo paper notes in circulation ut par,
tho obvious duty ct the Government is to
offer tho creditors bond bearing such rate
Of interest as overdue and unpaid obligations
arc entitled to, and to thus retire ita forced
loan scrip.