The Grange advance., 1876-03-01

would render them utterly worthless
more rags. . .,::%. ....f. %
Nan: You have no ground what
evor for asserting taat there would be
any imitation. I deny that there would
be, or could possibly be, under tho: ope-
ration of this eystem, any expansion
Of the volume Of currency beyond what
tho needs of trade require. ,.>.. "...:. =
Pol: What! No expansion When
you reformers want the government to
;ssue greenbscks to the entire extent Of
the public debt $4,000, ,000, ,000-
would there be no expansion? Have
you any idea Of the amount Of currency
now in circulation? Do you know that it
does not exceed about $500, ,000, 900 all
told1'
Nan: How do you make that out ?
Pol: Well, there are, say, $780,
000,00 Of greenbacks, about $420, ,000,-
900 Of national bank notes, $75 .O00,-
900 Of fractional currency, and about
$25, 100000, perhaps, Of coin and other
currency.
Man: I doubt very much whether
you have studied this subject. You
make no allowance for the greenbacAs
and fractional currency destroyed in
various ways, nor for the former
held by the banks az reserve fund,
and I think you place the aggre-
gate bank currency at too great an
amount. As for the coin and "other
currency in circulation, you have over
stated the amount about $25, 900, 900.
l doubt whether the actual currency Of
this country to-day exceeds $500, ,000,-
900. It wears out, you know, and gets
lost and destroyed. Even gold wears
out rapidly and depreciates in value
because Of its wastagc. But that is
neither here nor there. I still main
tain that you have no reason for ass ert-
ing that we currency reformers ask for
imitation. You have nisstated our case
materially.
Farm: And you have shown that
either you don't know enough to hold
Office and discharge public business
wisely and prudently; or that you are
80 dishonest as to prefer to side with
the wealthy money monopolists, for
the sake of their influence and pecuni-
ary favors, rather that sustain the cause
of the industrial classes, whose votes
you are asking to elevate you to Office.
Pol: You misapprehend me. l
want honest money; money that has an
intrinsic value; and which does not
change its value every few days. You
can't have this unless you use gold.
That has intrinsic worth and is not
subject to changes.
Man: Let us settle one thing at a
time, if you please. You said that we
favor imitation. That deny. Our
system is this: We would retire all the
bank currency; make the green
backs legal tender for all debts due
the government, as they are now for
all private debts: and make them con-
vertible otpa'' at the holders option in
to bonds bearing 3.65 per cent. interest.
We would also make these bonds con-
vsrtible at par into greenbacks. Toget
these greenbacks into circulation the
government might proceed as it did du-
ring the war, pay them out for supplies
and salaries: or, it might put them out
as it does the bank notes, except that
instead Of lending them ON bonds being
deposited as co!uterals, as is done with
the notes. it would pay them out to
bankers for the bonds. It would thus
save the payment Of interest on an
quivalent amount Of bonds, in that it
would actually purchase the bonds.
Pol: But how would you limit this
issue?
Man: 1t would not require to be
limited, for it is not likely that anybody
would sell bonds for currency unless
they actually needed the currency. Re-
member that the bonds would draw in
tcrest and the currency would not.
Hence, the bonds would be the best in
vestment, unless the currency, employed
in trade, would earn greater rate of in
terest than that paid on the boads. In