The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1876-04-12
The Republican Again.

.
of year, and at different times, have
shown all the objections raised
against that theory to be more prop
er]y applicable to the existing tinan-
cial policy. notwithstanding this;
we were recently called upon by the
editor of the Republication an ex-
PLANTATION and, in reply, gave him a
brief exposition Of our system, with
out, of course, descendingto details.
In the next issue Of his paper he
confirmed our suspicion that he was
insincere in protesting a desire to
discuss the subject fairly, with view
to its calculation, for he took occa-
sion to misconstrue our language;
and, basing an argument upon such
misrepresentation, arrived at the
following conclusions:
l. The plan as above stated involves vio-
aent contraction Of the currency to the cx-
tent of about half it's volume.
2. The stringency Of that contraction will
continue until relieved by the coming back
Of specie, or by new issues of paper.
3. If specie comes to our relief, circulating
ut par with treasury notes, the theory Of the
hard money contractionists is established,
and the grecnback theory dies suici"c.
1. If specie comes to our relief, circulating
at premium in currency, the promise that
the grcenback scheme will make currency
and gold Of equal value is broken, and the
scheme dies suicide.
5. Relief cannot be had through a new
issue Of grcenbacks, under the plan above
given, until a 1855 per cent. currency loan
can be negotiated.
& Such a loan can not be negotiated at
par.
In hasty rejoinder two weeks
ago we showed that our system con.
tenplated no contraction of the cur
rency whatever, and as the above
conclusions were all predicated up
on this Misrepresentation, they, of
course, fell to the ground when it
was overthrown.
Next came four questions which
we were requested to answer. The
first Of these involved the presump-
ton that contraction must attend the
adoption of the greenback policy,
and the fourth depended upon the
alternative Of a negative reply being
given to the second, and it becomes,
therefore, unnecessary to refer to
them again. 10 the second and
third we reply as follows:
2. Does your plan contemplate selling the
1865 per cents for less than their face value
in gold?
The proposition is to sell or ex-
change them for outstanding bonds,
on the most advantageous terms to
the government that can be made.
3. At what rate is it probable they could
DO sold for gold to redeem the existing gold
bonds? Give the figures Of the calculation,
if convenient.
Gold is now worth $1.12H and
new 5 p. c. government bonds are
$1.1S-5H cents more than gold.
The interest on these is payable in
gold, while that on the sos bonds is
to be in gold or currency at the op-
ton of the government. 1t appears,
then, that the new bonds ought to
sell at 9 mills less than par in gold.
But the p. c. is gold bond both
as to its principal and interest, while
the sos is to be an optional gold
or currency bond. While we be-
aieve that the adoption Of the green
back system will speedily bring
about the reduction Of gold to par
with greenbacks, and do away with
all difference between bonds paya-
bic in gold or in currency, we are
willing to give our neighbor the ad.
vantage Of this difference in the
present value of the bonds, and
then the 3.65's will be worth $1.o4
in currency or about 81 cents less
than gold.
This would be their value, upon
first placing the bonds upon the
market, and would not probably
apply to more than, say, $500, ooo,-
900. The difference between the
market value of the bonds and gold,