The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-15

redemption OF the greenbacks. The green
backs shall be redeemed in this bond on
presentation at the Treasury. But in
order that there may be no permanent
dimInution of the existing volume in cir
culation, any holder of 1865 bonds may re-
Quire grcenbacks therefor, ON presenta-
ton SO .hht at all times there shall be In
existence the same amount Of paper money
that il now afloat, or the means OF pro-
ducing il on demand. This is the first
branch OF the proposition and to this ex-
tent the scheme can be easily put into
practical operation.
The second branch Is much more COM
prehensive. This proposes that Congress
shall authorize an indefinite issue Of green
backs in addition to those already issued
which the Secretary shall furnish TO who
ever wants them on the presentation of o
365 bond of the Government. But as there
are no 3.G5 bonds in existence for this pur-
pose, II Is proposed that they shall be OBJ
tainabe from the Treasury by any holder
OF Government bonds drawing higher
rate of interest. Thus per cents OF per
cents or ~ per cents shall command 1856
per cents in any quantity. Whosoever
wants TO obtain the 1896 bond, for the sake
of its legal tender and convertible quality,
and will surrender n bond bearing n higher
rate Of interest, shall have the privilege OF
doing SO. In this way II is proposed TO
utilize the whole public debt for the pur-
poses of circulation.
It is hardly worth while to discuss the
second branch of the scheme, because 1t
cannot no nut into onarntinn IN account
OF the attitude OF the courts. It is fully
understood that any increased issue of
greenbacks would be pronounced illegal
and void; and Congress will not pro-
woke such a decision. The only prac-
tical question, therefore, In regard to
the intcrconvertblc bond plan, is whether
1t Is wise to accept it for the mere pur-
pose of preserving undiminished the ex-
listing quantity of paper money in circula-
ton. We should oppose 1t on the ground
OF expedieucy merely. 1t would only en-
cumbcr still further an already cumbrous
system. 1t would be an expensive way of
making bad matter worse.
But our real objections are fundamental.
The intcrconvertible plan, by proposing
that the volume of the circulation shall
NV OO NiiihihiShtNs PibBbS'o AhhA II fhoii
remain forever redundant and deprecated
below the value of specie. 1t .hus estab-
fishes indefinite suspension. II proclaims
perpetual discredit and insolvency. 1t de-
clares against the practice of the great
nations Of the civilized world, and against
the uniform judgment OF mankind. 1t for
ever discards the universal standard of
value, and substitutes a scheme of theorists
which has over and over again been re-
futed by both logic and experience.
II Is very different thing TO say that we
do not feel ourselves quite able or will
ing to resume, and that resumption
must be reached by moderate stages,
from saying that we are in favor OF
system OF non-redemptiou and per-
petual irredeemability Of the paper cir
culation. This is 20 defy the conclu-
sions Of the wisest and most experienced
men, and TO cut ourselves off from even
the hope Of future Improvement. Here is
fundamental distinction between sound
and unsound finance, which cannot be
reconclled. II admits OF no compromise
The idea of indefinite suspension and per-
petual non-payment IL wholly odlous and
inadmissible in any scheme of legislation
respecting the currency. No modification
of the interconvertible bond scheme is
thus possible in any view of it that can be
taken, as it is nothing less than PROPOSE
ton for endless suspension and perpetual
bankruptcy. The redeemability feature
| of ii Is mere snare and delu sion,
and means nothing in practice but the
| putting aportion of the circulation ON in
| terest, without any general advantage
| whatever.