The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1876-07-28


per was worth it's face in gold, that
bring dollar IN gold from
abroad. If gold owners in Europe want |
paper money IN exchange for gold, they
prefer their own paper money. They |
would laugh at the idea or sending their /
gold here to have us send back our gold |
basis paper dollars in exchange for it. |
They viii sell their gold to US only to buv |
interest bonds or products with, and we
can sell them interest bonds and pro-
ducts now as well as if our greenbacks |
were worth their face in gold. Europe |
has need and use for ali the gold it has.
To ship $50, 100000 in gold coin to this
country now from England would precip-
itate the impending financial panic there.
The idea that if we only managed to make
our paper dollars worth their face in gold.
that European gold viii flow to this coun-
try for Investments and use, is q great
1t is too timid to do any such
thing. There is ample use for it there,
and now that silver is demonetiZed, gold
is more in demand there than 1t has been
before in modern times. Prices OF labor,
products and property are falling there,
Will also fall, and consequently fall in this
country. 1t is the insane effort to make
all debts in the world payable exclusive
~ in gold, which is prostrating business,
depreciating the fair value of property,
reducing the prices of labor and products,
and destroying the prosperity of all but
gold bond owners, on both sides the At
lantic. The destructive work is G DING on
there just as it is here.
When Resumption condemns the 1866
intercOnyertible coin bond plan, and COM
mends the national bank currency plan,
he contradicts himself-they are practic-
ally alike. only the first is not a monope-
ly, and the latter Is. The first provides
that the greenbacKs shall be redeemable
in government bonds bearing an interest
OF 1856 per cent. payable in coin; the lat
ter provides that the national bank notes
shall be redeemable in bonds bearing an
interest of per cent, payable in coin.
The security in one case is the 1865 bond /;
in the other, the per cent. bond. In either
case, according to the statement OF Mr..
Hatch, and other eminent bankers, the
bonds are worth their face in coin. when
. moderate quantity is offered for sale at
time, and are ample security for the
notes. Government bonds furnish the
security for the gold value of the paper
currency in both cases, and yet Resump-
ton denounces the plan which furnishes
perfectly good security and saves the gov
eminent large amount of interest per
year, ard csmmends the plan which does
not save the government any interest. He
wants $70O, OOO, 900 worth of government
cows to be MIXED by the banks, instead
of by the government itself-that's all.
The resumption men have been giving
the people to understand that they pro-
pose to make our paper currency worth
its face in gold, and to keep it in circula.
ton on gold basis. That is what they
insist should be done, therefore quote
the closing part OF Assumptions letter
to show how they propose to do it:
| Mr.. Graham don't believe the banks
could resume if government could, anC
| wants me to ''arise and explain" "WhicE
the same it is plain," will try to do.
will only mention one of the several ways
/ it might be done, as it Is not question Oi
the best way, but Of ability to do it al
| all.
Correct so far. One way will do.
Suppose that every government note
could be redeemed in gold by presenting
1t at the treasury in Washington; that
would be practical resumption on the par
| of government.
An altogether Improbable and i'm
| practicable eVent--but suppose it wa
done. That would not be resumption in
the popular understanding of that term
1t would be simply the redemption oil
the greenbacks with coin, and their per
manent retirement from circulation, Ieav
ing national bank notes as the only paper
money, in accordance with the provisions
of the resumption law. So suppose thi
to be done, we go on to see what would
become of national bank notes:
Now for every $4,000 of notes ISSUED
by the banks they have deposited il
| Washington 100000 worth of bonds
worlds market. The banks could retir
every dollar of their note circulation
and put in circulation $10,000 more il
gold, on every $4,000 than they now
nave In bank notes.
AS matter of fact, the sale of tn
bonds for gold cOutd only be effected b,
degrees, and the same gold used owe
aad over again to buy them. To throw
them all on the market at once at force,
sale would ''bulI the MARKET and brin;
their prices down to one-half presen
rates. But grant they were all sold TO
gold and the gold used to redeem the
bank notes with, and it would simply b,
the redemption and retirement also OF tn
national bank currency, and leaves u
without any paper currency at all. TIL
J people who now have the bank note
would then have the gold, and would re
fuse to exchange it evenly for the notes
, just as present gold owners refuse t.
This isn't plan keeping the nations
al bank currency in circulation on q gol
: basis at all. It is retiring it from circula
; ton altogether. And NO one objects t
r the banks selling their bonds or seIlin
any other kind of property they own, fc
2 gold and giving the people the gold in e1
3 change for the notes. No enc ever oil
jected to that. No one ever will-exceI
r the banks themselves, and they will Sc
3 the people sunk to financial perdition b.
/ fore they will do any such thing. So VIII:
r is the sense of surprising things that "
d know won't be d one, and calculating tn.
: the banks could do things we know the
: won't do and have never thought of doinj
There isn't bondholder In the world WI
r would sell his bonds for gold, TO trad
the gold for national bank notes. The
are not doing any thing Of that kind.
would let them right out OF the bankir
business, and be an effectual abolishmel
of the national bank system and currenc,
because the moment the governmeI
: ceases to hold the bonds as security 4,
e the redemption Of the bank notes, Il
/ notes must be redeemed and retired fro
: circulation. They remain in circulate
e solely on the strength of the goVernmeI
0 holding the bonds which they represe en-
=, The idea of the banks abolishing then
q selves, and selling their bonds and giv1r
e the gold proceeds to the people, leaV in
D themselves only their own paper dollar
t to hold, is-weil-lts as probable, pract
e cal and sensible as any other part Of q
e Resumption programme. Next. G..
e HE Heat That Mem Can