The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1876-01-13

Senator Booth and the Currency.
Yhex Independent, Senator from
( CAlifoFnia has wiitten . letter to the
Spring eld Rdprblican giving his
views lpen Athe currency question, in
which he advocates the 1856 intercon-
v6rtibIe bond theory, OF Mr., Kelley, of
Pennsylvania, or something similar to
it. He says:
"That 3.65 gold bond, intercon-
vertible with paper currency at central
Government agencies, with an alterna-
tive privilege of the Government of
redeeming its bills in gold instead Of
The bonds, would be likely to operate
=sle wln but seffeotiyely,s in restoring
Our s1ITency to- the standards of cos
mopolitan c0mmarce, and furnish in
q simpler and cheaper. and even more
effective form, than the National
Banking system. our whole supply OF
paper money" ."aiaoi7 afsH 49,
!. In arguing the subject, he says it is
. fallacy ITO speak of gold as the
measure of value in the same sense
that . pound is the measure Of weight, .
tnat .'the value Of aibushel Of wheat is
not measured by twenty-five grains
of gold any more than the value of the
gold 10 measured by the wheat" that
the wheat has q value for certain uses,
the gold for other uses that t'the
wheat may be weighed on Fairbanks
scales, the geld at tho United States
Mint, but both are brought to the same
test-gravitation;;" that q sovereign
Govern Ment may decree that its dol
lars may be. one thing to-day and an
other Tomorrow" The Senator ar
gues that as gold is an excellent "ad-
jpster," and as there 10 enough Of it in
the ,werid to- serve that purpose. it
shallserve It, while the business of tile
country must be conducted OH credit.
He says: - m -',tt -..',. -...'...
tsThere must be some additional Ia
Dor saving device in the machinery of
commerce to perform the daily drudg-
cry Of exchange, aud square it's ac-
rcounts every day, with gold as the
common adjuster. The deyice 10 credit
utilized as money" laus ra
b. He pays his respects to the National
Banks, calling them unnecessary ma
chinery; charges that they borrow the
credit Of the Government at one per
cent. per annum, while the Govern
rnent pays the Banks five or six per
cent. in the same Transaction, the diff
ference Of course, being in favor of
the banks AZ II is the Government
which alsne givss the National Bank
notes currency, he argues that these
notes "ceuld just as we'll have been
issued directly in the first instance" !"
He says: boz ,s9 saw ~
"Why not GO . step further, and use
the Government credit directly, in
place of lending it at one per cent. and
paying six7 If one-quarter the
thought and attention had been paid
70 Improving the National currency
that has boon to dOvetailing it into the
bank note and maintaining and recon-
Cling . system artificially complicated,
the greenback would have been At par
with gold long ago." -..-,-....
This, is what he claims his scheme
will accomplish:
IL. Greenbacks will be worth as
much as the bonds into which they
may be made convertible.
.'2. Making bonds and greenbacks .
interconvertibls will give the bonds
additional value by making them de-
sirable for large class OF Investments
which would not otherwise seek them,
and, by as much As is added to their
value by this quality, the interest will
be reduced which the Government is
required to pay in order to bring it's
bonds 10 par with gold. fI
..3. AS the English consol, a perpet-
ual 3, per cent. gold security, is worth
95, an American gold bond on long
time or perpetual at 3.65, with the
added value Of the interconvertible
clause, would appreciate to par with
gold. as its credit would become es-
tablished, which would be as rapidly
as the country can return TO the specie
standard in justice to existing con-
tracts.
.s4. The sinterconvertible' character
of the bonds would enable the Gov
ernment credit to circulate as money
III Just SUCH VOluuic az tuc UuSIuCSs VI
the country would demand, without
he Intervention Of the cumbersome,
expensive and unnecessary machinery
OF banks Of issue. whose notes have
no value except that Of tho Govern
ment credit. 4ats asaE
s'.5 There would be no occasion for
the exercise Of q power of doubtful
constitutionality and dangerous policy
in the creation Of corporations by the
General Govern ment. 5iss
sc. When Government notes appre-
ciate to the specie standard the legal
tender quality can be removed without
opposition, and we shall again be
within Constitutional limitations on
the subject of finance"
A Graduated Inc0me Tax.
There are several things which the
Democratic majority in the House OF
Representatives is called upon to favor
1t should, in tho first place, reduce the
salary of the President of the United