, 1876-03-25

poson employed elaewhors than In t,e requirements
Q. ths Treasury waa lo.ned o. long tins e lanied
rctsou. essi and the dlfoul.y * oatsininr jasfcc
tnr from II, II. ID Tsnsoorst iii melsncoy svossi:
In RnasA ths .seot psTs when f,e chooaes. Whist hs
choosds, anil how ho chooses"
Tho withdrawal by dovernmens Of our PROS
ent gseenbaok ourfonoY, In exchange. at actual
va!uos. TOT nav currency Of Government notos
radeotnAble on demand In gold. would losaSh tho
volume Of ol1r ourroiicy debt IL per cent, or
GAG, ,o9o, 600. by the consent and net OF tho hold
ora OF that debt. This gain At tue ontaot would
indemnity the Government PRO santo for any loss
1t might bo at in maintaining redemption. II
would certainly be easier 10 maintaIn redemption
on onrronoy taslod at par, thnn to fotce ona
psr, and then na,ntan redemption on IL. Tho
toxperarnsht could be tried a. An experiment, by
issuing no.oa rodeemable In gold only to Tho
amount OF tho gold actually in the Treasury,
say a. prosons s37. .ot0, o00. As II wonld cost
samo suu, In greenGaoks g bny thoso .'goii
notes" that 1t would to buy tho gold Itself,
Il does not eeom 10 mo that tho gold.
notes would bo purchased 1t all by tho
that thcy wonld pass exclusively into tho hands
Of tho class that proforred tlio notes to The
gold. tlioH shout the Importers 9-Eb,1 In
thdir ha1N1s. thoY would not be cxtanslvely
1uiro about $22o o00. COO Of gold per annum Tor
duttaB, aud expectation to ply balabces. Thoyt
Of course. would take the Erocnbaoka to sle
Treasury for coin to that smount aud aoon
strip it OF tho laat dollar IN tts Ysuts thersby
they sbould load to : run Cd tho Govornment
for gold, tho1e would DO no modo OF rcueemipg
then but to uao the gold In tho Troasnry SO
long As I would laat. and then sell bondB for
any system Of redemption. whosher undnr-
taken BY Government Or. BY tho banks. Tho
banks havo no aaseta, aad mover will have which
thoy can loncstlv or profitahly apply to tiIo
booovolent taak Of Eedoemin9 In gold = cur
Nor can tho banks issue I currency OF notaa re-
l0otnablD In gold until tie community call for
tIon1. Nor could tho Government DO 70 undog
tic sysson ! base proposed. But the Govern-
mob, as much 80 as indiyiduals, WITH roforeuco
to such an act as tho Hubatttution Of notos re-
doemable In gold for tho presont nosas. To
lehvc II to tho banks Ia to leaTo It uudono. Bo-
% %si,os. tho Government Is tho agenoy that got
tho duty OF getting tho country out Of It.
[htl tho Government has to do ID to fund its
notes by Offering tho holders the right Of chang
ing them for bonds. Then lboralzo tue law 10
problem Of resumption fs solved, The banss
alone can t0sumo, To-lsaue their notes, aud
ulniutain coin-rodomption on demand. Soonor
o. lstor wo allall hsvo to como 10 this plan.-
I4u.l II tl8 ueQteclhtlDn u&Q ueDQ chu6p4 DY
tho banks, thoy would control tue forces
requisite to its euro. But, aB thoy had naught
to do with causing II. II is ldlo and cowardIy to
look to then to onro 1t. Whom the Government
hne, by the method pursued BY RussIa In 1870
to 1867. or any Hlmilar nothod, accustomed tho
banks To redeem their noteB In Gov
srpmens noto which "a itself redcemable in
gold, tho banks will then bo practically
lsdooming tbais own notes IN gold, and tho with
aHpd f1o Ia Atn r1r5 I'm te1A NIL
their own. But to look to tho banks now 10
bring about resumption implss unity Of conu-
H0s and Of interests in that direction which they
do not possess. v. u. DENs1ow.
I1fr. D. oults to s.ato that, In 1861 tha Ius-
sian GovsFameat undertook to resume. The
Czar first sold bonds, aud borrowed about
e7b000. 600 for redemption purpDso8, uc
oponed h's vaults. and oilorod to pay coin on
bis paper roublea. They camo in 40 fast that, III
fow uooks, he ignominiouBly closed tho doors
Of Lila shfos, shut down on tho public, and since
thon has naver attempted tho big Job Of re-
sumption. 30 much for the Rusaaan example,
En.1