The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-01-19

stFuUncSL lDlUCCIISUL III llsiSt oh LnSh Z
demption to the last dollar when by 80 do
ing they become the sole possessors OF the
only currency which will be IN circulation
when that currency is reduced In volume 70
one.half aud enhanced to double Its value
when they can employ it in buying faud III
half price or can loan 1t to the Government
(Which will have to borrow gold largely
to pay greenbacks) or to individuals
who are in debt? win credi
tor, entitled to demand gold,
remit his demand and accept greenbacks
(tbus keeping them In circulation at his own
eypense) in order to save his debtors pro-
perty from being sacrificed; or will he not by
demanding gold force it into market under q
reduced volume of currency and buy 1t him
self? The writer in question will not deny
that this state of things will result If the
process of redemption gees on to Its com
pletion. But who can arrest its Inevitable
course? Can YOU arrest q crevasse in the
Mississippi at highest food or stay the falls
of Niagara? What eXpedient does he de.
pend on to ccomplsh this Hercuean task
LIST. The Government is to pay out all the
specie it has. say 800 900, 900. ID. 1t is 10
make the offer of bond such as would now
be at par with gold. With respect
TO the last idea l have above
shown its falsity by showing that
in the supposed state Of things which the
holders of greenbacks have it at their option
to bring about such bond would be far
below par with gold. As to the first. ask
if q man owing $4,000 by paying $4,000,
which be confesses is all he can pay, thereby
restores to full credit and eleyates to par
with gold his unpaid notes for the remaining
$4,000: How he could have conceived
such an idea [ cannot Imagine. unless he sup.
poses the case of the Government to be diff.
fcrent from that of an individual in the same
circumstances, and to be analogous to that
of q specie paying bank, which while ii has
in its vaults only one dollar in specie can
lend out three dollars in its own notes, and
keep them in circulation ut par with gold.
This arises
1st. From the fact that the bank being a
lender of money at short dates, with good
epdorsCrs, is almost sure of having enough
specie returned to it by its debtors 10 meet
any call likely to be made on it for specie.
Recolcct, the case supposed is that of banks
paving specie, not in suspension, so that
their notes are at par with specie, and their
debtors will pay them ind differently in specie
or IN paper for money borrowed in bank.
paying bank, having never failed to pay spe-
Gle when called upon.
=. Large amounts Of specie are deposited
ia such banks for safe keeping, subject to
withdrawal at any time, and hence at low
interest or none, and they constitute fund
out of which the banks can pay specie.
5. The bank, when it lends out its notes,
becomes both q debtor and creditor-a
debtor by virtue of the promise on the face
of every note to pay its amount IN specie TO
the holder of the note whenever called upon !;
q creditor to the same amount by virtue OF
the loan.
The holder is either the borrower or some.
body TO whom he has paid it in payment OF
debt, or for the price of goods or the hire
of labor, or for the purchase OF property IN
general. If the borrower is the holder he
cannot press the bank, for the bank will press
him. If any of the assignees or employees OF
tue borrower is the holder, by making run
upon the bank for specie be stops at once the
increased bank accommodations by which
the borrower has paid his debt to the holder,
or purchased his goods, or employed his
labor, or given him his price for his land.
The hank could not loan the money unless
the community will take its notes as money.
So the holder loses good debtor, good
customer, good employer. The public,
composed of all the holders, lose the
expansion, activity, and vigor which
bank accommodations give to trade
and business generally. Thus the
community is more than compensated for the
lorbearance shown and credit given to hanks
by The credit given 10 every individual, and
tue multiplied blessings fl wing TO the whole
community from such extension OF credit.
The more debt The bank ncurs tie more
credit il gives. As it mu'iplles is creditors
% it multiDlies it's debtors, aud it cannot be
pressed without causing it to press some.
body to an equal amount. ibis is the
guarantee which the bank has against bcing
run upon by the holders OF It's notes-motlVes
of gratitude and motives OF interest prevail.
But the relation between the Government
and the holders of the grecnbacks is dItiel-
emf. The Government is simply debtor,
and not also creditor. The note shows it
has borrowed money, not that 1t has loaned
any: far less that it owes the more
because it has loaned the more. For.
bearance to the Government is not
forbearancc to the bank, the price paid
for past favors and loans from the Govern
ment nor the condition of future ones;
for the Government did not lend in contract.
ing the debt, nor has itanything to loan. The
man who makes a run on the bank for $500
iu specie gets no better money than II be
got $500 in paper, but breaks up an iDstitu-
lion which caused bis business to be three
times as great as it would otherwise have
been. But the man who demands gold for
bis greenbacks need fear no recoil on himself
of the pressure he makes on the Govern.
ment. He simply benefits himself by con-
tracing the currency and getting posses
sion of as much Of it as he can, so
that when the resulting fall in the
price of property comes he may take adVan-
tage of it, and make his fortune. Every
greenback redeemed with gold takes out OF
circulation two paper dollars-one greeuback
and one Dationa.5ank note-bssed upon it,
and leaves only one dollar In gold. Every
greenback converted into United States bonds
takes two paper dollars out of circulation
and leaves none. Every greenback Kept IN
circulation keeps 10 circulation also the ma
tional-bank note based upon it. Even
SHOULD the 3.65 bonds be at that time
worth more than l suppose, what motive
could any holder of greenbacks have for ac-
cepting them in place of gold when thereby
he disabes himself from investing IN land at
the lowest prices that probably would ever
occur! I sincerely desire, if have misap-
pretended the reasoning of this writer, to
be convinced of my error. see all the re.
sumptionists- sherman, TiIden, and others
make the same confident assertions OF the
ease with which contraction can be prevent
ed from following resumption with the same
obscure and inconclusive arguments in
proof. Let them tell the modus operdnds.
In anxious desire for further light, sign
myself "QCGRo."
Buffalo Springs, January Is, 1915.
Ianu !