The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-15
What Can and what Canno, he Done,

correspondent in Philadelphia thinks
eur plan of proceeding in regard to the
currency question is open to the objection
MAT "it would have the effect OF substi-
hitting national bank notes for greenbacks,
without bringing us any nearer TO resump-
HON" "N" he further says. 1.-The national
bank notes were withdrawn" land an in
terconvertIble bond issued, many Of
HE ablest and best business men advocate
This plan and predict an era OF prosperity
on it's adoption, never before experienced
In this country"
The currency measures we advocate arc
not positive aud immediate steps forward in
The direction OF resumption They are
rather OF a conservative and preparatory
character. And we take leave to say that
no judicious legislator will undertake to
DO more In the present state of legislative
opinion than to prepare the way for the
restoration of our finances to n healthy
and natural condition. The value OF the
Ereenback and the national bank motto can
only be raised gradually; and situated as
we are, with so many crude and loose no.
lions ahoat as to what is best TO do, our
nrst duty Is to keep II from falling
done this, we shall have taken an i'm
portant step and secured an important
result 1t will be to say in effect, that
We must not allow our circulating me-
dium TO be made any worse by further de-
probation, but must at any rate hold il
where it Is, and make il better as fast as
we can. We are content IL we can secure,
NJ the first, an end so important as this.
We do not look therefore, to see any i'm
mediate change in the relative proportions
Of bank notes and greenbacks in circula-
ton, by the offer OF redeeming the lat
Ter in n four per cent. bond. But notwith-
standing this view of the case, our CORE
Bpondent Is mistaken in supposing that the
measure will not bring us any nearer re-
sumption. IL will bring us nearer. from the
fact that il will prevent us from drifting
further away from il. We cannot stand still.
Assuming that the four per cent. bond ID
the equivalent Of the greenback to-day, it is
certain that the progress of time and
events will change that condition for the
better Circumstances will arise in the nat
ural course of trade and finance that will
from time to time, cause q gradual ex-
change ana absorption of the greenbacks
This imperceptble movement will enhance
their value more or less rapidly according
20 circumstances. If money should be-
come still more plentiful, and the rate of
interest fail still lower, which we think the
markets of the world Indicate, there might
be AN important advance made in the value
of the greenback, and of course in that of
the bank note; and this would be just so
much Of an advance toward specie pay
ments.
Yet the advance would take place
without any disturbance of the money
market, because it could not 20 on If it did
disturb the market So that we must per-
oeive that either more or less rapidly, ac-
oording to the movements of business,
trade, and enterprise, conversions OF the
greenback would be going on and every
conversion would be point gained, step
forward. When, after trial, the system
shall be found to work no mischief and to
endanger no financial interest. when people
have had time TO clarity their ideas, and
uisabuse their minds OF false impressions
under the light of experience, and to see
the truth that there is no merit or virtue
In redundant and deprecated circulat-
tns medium, we may expect them to
be willing to advance step further
and brush away the last obstacle to q
nnal restoration of the specie standard
Such, in brief are our views of the eff
fecis OF the policy we advocate. Our cor
respondent cannot fail to see how greatly
mistaken he is in the supposition that sit
does not bring us any nearer 10 resump-
ton"
Now we will say n word in reference to
thc withdrawal of national bank notes, and
the substitution of greenbacks redeemable
In an intercouvertible bond. Our oorre-
spondcnts 4" il " settles the first question
There is no probability possibility OF de-
uroylng our banking system. 1t is a fixed
fac, and il is idle TO discuss its overthrow.
Tho great CONFUSION of our civil war did
not wen threaten, but only strengthened
the system, Notwithstanding the imperious
Necessity that lay upon the Government OF
becoming the exclusive source of the cir
oulallng medium during the war. II
dlu not undertake to suppress the banks
power OF issue during the period OF that
supreme necessity, and contented itself
with sharing the privilege with them.
OV0rpowerlns circumstances created the
existing system OF joint issues, and il will
continue long after the present generation
has done debating it, and all other ques-
tiOns We dismiss 1t from the discussion
as wholly outside the circle of practical
action; and IL would be good thing if
everybody else would do the same. We
might just as well agtate the probable
tiles OF securing perpetual summer by
raising fences against the north wind.
But let us sec what this much talked
Of interconvertibe bond system is, which
cur correspondent favors. 1t looms
before the public always in large and
vague proportions Reducing it to a
simple and precise form, we find IL is
composed of two parts. In the first
place Il proposes to maintain the existing
volume Of the paper circulation where 1t
now is without reduction or diminution.
Congress Is 10 authorize the Secretary of
the Treasury to create 3,C5 bond for the