The Grange advance., 1876-03-01
Hard and 9on Monev.

O''''~e>e's' F VVo, toey seA mo ssoos
you've got to be q "soft money man.
Aan9f faeturer: If they mean by
that, chat am in favor Of greenback
currency and plenty Of it, they tell the
Farmer: All of US ought to be in
favor Of some sort Of money that isn't
80 hard to get as our present currency.
Banker: But if you had house full
Of greenbacks, when your reform system
is adopted, they wouldn't be worth any
thing.
. Nan: Why, not:
Pol: Why you know that paper
currency cannot be valuable as me-
dunn of exchange, only when it is based
On gold and silver. Only when it is
redeemable in specie.
Farm: Are not our national bank
aotes good currency?
Bank: Yes. But you know they
ire indirectly redeemable in gold.
Man: Will you please explain how
hey are thus redeemsble?
> Bank: Well, they are redeemable
greenbaoks, and you can take the
after and buy bonds, and the bonds are
payable in gold.
Farm: Can't you do better than
hat? If you buy bonds with green
Jacks, you nave to pay premium Of
- rom l6 to % per cent. Can't you take
he bank notes and do better than this?
Cor instance, if you have $45,00O IN
'ank currency, can't you get $4,000
# bonds
Bank: The banker who owns the
,onds, if he desires to retire that a.
aount Of the currency Of his bank, can
urrender the notes Of his bank and get
'onds, as you say
Farm: But no one else can do this j?
Bank: No. sir
Farm: Then such bank notes are
rorth more to him than to the people
Tho use them as currency? More than
old, really, for the bonds command a
remium in gold.
Bank: Certainly.
Farm: What makes them worth 80
,uch to him?
Bank: Because they may be ex.
hanged for United States bonds, which
raw interest and are payable, principal
I'D interest, in gold.
Farm: But the banks are only re-
uired to redeem their currency with
eeenbacks.
- Bank: That's so.
Farm: And greenbacks are not ex.
aangeabie at par for bonds?
Bank: No. If you want to in.
,st greenbacks in bonds, you will first
ave to buy gold, and then buy the bonds
ith the gold; paying first a premium Of
y per cent. for the gold and then from
to s per cent. for the bonds, accord
& to the kind you want to buy.
Farm: But, if the greenbacks were
:changeable at par for the bonds
ey would be as good as the bank cur.
ncy, wouldn't they:
Bank: Oh! yes: and better, if YOU
uld convert them in sums of, say, fifty
liars Or any multiple vf that sum
icy would then be at par with the
>nds.
Farm: And better than gold
'uldn't they? For the bonds are
>rth more than gold, you know.
Bank: No, NOT better than gold, for
~ couldn't be used to pay duties
tn and would not be current at par
forei gn countries.
Farm: But the government could
Ike them receivable for duties: and,
,ause our bonds sell abroad at y pre-.
I'm in gold, If our greenbacks were
lvertib!e into bonds, 1T par, is it not
to infer that they would have a
Iue abroad approximate to the bonds?
Bank: That would seem to be the
erence, but you must not lose sight
he fact that there ara certa;, laua
;rade which govern shi, matter, anl
ich l have not time to explain now,-
Van: And which you could not ex.
in if you had lifetime. I'm thing
.. The laws Of trade would operate
~ my frieni has surmised. IF the
ds command premium in gold. and
he greenbacks are convertible into