, 1876-03-27

THAT coMPRoMIsE FINANCIAL BILL.
The managers Of tho compromise finance
bill At Washington have gradually progressed
to the point Of comprchending that boarding
gold In the Treasury until enough Is accumu-
lated to rosutno specie payments Ia equal
to borrowing that much money at per cent
interest, which, compounded, will mako tho
United States pay SO in gold to redeem each
81 in greenbacks. Having reached this
common-sense conclusion, they havo dlscoy-
cred TINT it il much cheaper to offer tho
holders OF tho groonbacks g per cent bond
than to pay per cent on hoarded gold. The
funding Of groenbacks Is tho only rational
way Of disposing Of them 1t Is the pay
ment originally proposed, md win bs por-
fectly satisfactory to the holders.
Tho groonbneks aro the disturbing ele-
ment in our financial system, and arc 50 be-
cause they aro legal.tonler On which MI
the contracts Of tue country are made from
tay to lny. These greenbacls have long
binco survived tho necessity which created
them. If dnto were fixed after which they
will ceaeo to be legal-tenders for now con-
trnots, grconbacks would ceaso to disturb tho
finances they would Immediately take their
place as uncurront funds, aud bo takcn and
pnid out, as they aro In Canada, at their mar
ket value. They would soxvo, however, to
pay old dobts, and as tho use Of them for
this purpose passed away they would readily 10
exchanged for o long bond bearing low rnto
Of interest, Tho Congressional Ananciors,
however, havo yet much to loarn- They cannot
get rid Of the grcenbaak without mixing
some arrangement for substitute. Tho as-
sumption that tho National Banks will fur
nish specie-paying currency as soon as tho
grcenhack Ia retired, Is utterly fallacloua. II
tho banks cannot mako 1t profitable to keep
up = circulation Reasonable In depreciatcd
greenbaokp, 1t is not likely that they will at-
tempt to do 80 when they must redeem In
coin. porhapa In time this idea, which Is
sc!f.ovident to the country, will attract the
consideration Of tho financial doctors 1t
Washington.
While va approve and heartily commend the
schomo OF funding the greenbacks at the op-
ton OF the holders, we suggest TINT tho
Banking low muat bo largely amended in or.
der to let the banks of tho country Issue q
currency for the business Of The country.
| 4Ao R0ot RoS@AoA tHR01eAuueY kuQNQ
among men Is the currency Issued by tho
Bank Of England. Tho notoa Of that Bank
are secured to The extent OF $40, 600 600 by The
dsposit OF Government bonds, In addition
the Bank deposita gold In coin or bullion, ani
is allowed to issue bank-notss dollar for dol
lar therefor. Gun there DO more ample 60
onrity for the protection Of the bill-holder
than that which Ia thus a1orded2 But ou
Law requires still greater security
It requires the deposit Of gold bond
to tie extent Of el0o at par ia
each $50 Of notes payable in coin. !
e1Aots, also, Of them tax upon the ciron1s
ton and deposits, Do these gentlemen i
Congress suppose the banks will continu
their circulation when tho groenbacka are re
tired And their own notes become redeou
able in ooln2 The banks, upon the passag
Of tho proposed funding bill, would At ono
retire their circulation, and then, between
} tho two processes Of contraction, ths1o woul
b no currency, but there would be stagnatlo
and ruin. Lst Congress, before they annihI
late the greenhsck, make such N amsndmsn
| to tho Banking Inv that tho banka may issu
noses, dolAs for dollar, for Ill the bonds, H.
! bullion, and coin they may hold. 4 ban
With 420o, 600 IN gold bonds and $50, 900 i
J sold deposited Il Washlnstoa may sataly b