, 1876-09-30

THE INDEPENDENT (GHEENBACK) PARTY.
AB the election for President draws near,
md 4 careful consideration Of political qucs-
tions is forced upon tho votor, tho friends Of
m enlarged and exclusive governmental
issno Of paper money arc gradually with
drawing md taking sides with ono or tho
other Of tho two national parties. Tho the
ory TINT tho unlimited or ovon limited Issue
Of groonbacks. could DO regulated to tho
wants Of tho country by permitting thou to
bo oxohnngeablo at pleasure for bond boar
ing 3.G5 per cent intorest haa for along time
deceived many honest people, but those who
give the n,attor thoughtful consideration aro
invariably compelled to admit tho deluslon.
Tho general scheme Of tho friends of an
exclusive governmental paper currency is
that bn1k notes be prohibited nnd TINT grcon-
backs bo issued in lou thoroof, tho national
currency amounting to 37o0, 100000. Tho
holders Of thia currency are to be permitted
to surrender 1t at pleasure, in sums OF 500,
and receive therefor bond bcaring 9.G5
per cent coin interest; tllis bond may
bo surrendered at my timo and cur
roncy received therefor. Tho strong argr-
mont in fnyor OF this sc1olno las been TINT
it would rogulato tho volume of currency In
circulation by allowing tho excess over tho
wants Of trade to find its wny into tho bonds
.autl bo withdrawn ngnin whol, tho currency
was in de1unnd. but this facility for OK
changing deprcoiated paper currency into an
intorest-bearing bond would, as all experience
teaclles, find practical operation in the cur
ronoy passing into tho Understanding bond.
AL tho money III all tho savings banks md
in alt tho othor banks beyond tho sum need-
ed for ordinary daily transactions would bo
put in tho shapo Of these bonds. Nearly
overy dollar Of funds available for looms
10 merchants, manufacturers, minors,
builders, md tlenlorB in MI innnnor of l11si-
ncss, constituting tho wagos fund Of tho
country, Ia now in tho banks. They furnish
corporntions md manufacturers with tho
money to pay labor and to purchase raw
materials. Tho adoption Of this scl,omo to
give m interest-bearing bond IN lieu Of tho
notes would hnyo tho effect Of general cx-
change of notes for bonds. If two forms of
currency bo aaoat, ono being worth only 2
per cent more than tho other, that
QUO beatiug tho hfghor value will bo sought
aftor md hoarlled. Tho Government during
tho War issuct s270,0oo,oo Treasury notes
boaring . per cont interest compounded.
Tlloy circulated freely, but in month tho
accumulated interest gavo them yolno above
all other notes, and they rHpidly found tholr
way into eafes, bank-vaulta, md other re-
positorics, and In short timo disappeared
from general circulation. SO would 1t be
with tho greonbacks. Tho moment they
could 10 put into tho form OF m interest
bearing obligation, that moment they would
bo hoartled. The whole volume Of currency
would practically disappoar. Each man
would hold Oh to 1fs bond until lle had Il
payment to make, whom ho would pny out
to his creditor tho bond at its valuo With
accumulated interest. Tho bonds, like tho
compound-interest notes, would bo exchanged
in largs transactions with tlcir accumulated
interest, hut, ~ they would havo tlaily III.
creasing value, tAoy would mover go baos
into misunderstanding notes, Tho result
wonll bo the prohibition ot bank notos, tho
retirement OF tho greonbaoks, and familae Of
currency. Tllere would be a contraction Of
currency such as this or no other country
ever saw. Tho money now hold by banks,
forming the loanabie funla, and which fur.
nishea tho means for carrying on all branches
Of business, aud which furnishes tho money
to pay tho wages Of labor, would all bo with.
drawn from circulation aud put In tho form
Of interest-boaring bonds The projectors
of this sclemo urge 1t for the express pur-
roso Of preventing contraction, aud proyid-
ing permanently for supply Of currency;
but tho scheme contains within ITSELF the
direct means and inducsment for producing
that contraction to m oxtent not possible
under any other system.
Nor Is tho contraction, with its sweeping