New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-14


possible.
They also say that the National Banks nre receiving
upon every 100000 Of capital $4,000 annual interest
from the Government or people although the treasury
Department holds only $4,000 OF this amount as re-
serve Issuing Government notes for 100000 the actu
WORKING, capital which, in this State, earns per cont
thus making rate OF - per cent earned on the greater
part OF their capital stock which ought not to he why
not they saw cancel the bonds issue Government notes
10 the banks, and stop this leak
Another question which ! cannot solve: Surprising
house was built few years ago when gold was AT
premium 20 per cent, which then cost in currency
$1,000 Tho gold value would then have been $1,000
n This propcrty had been kent in order and repair It
would not bring NJ this tmc and in this Place with cur
repcv nearly AZ par more than $500 Where has the
difference 81 y 800 gone, and why Is there so great de-
prgcationi
Please answer those questions. and ohliPo
AN OLD READER TIE TRIBUNE.
7 Not n single bond is now outstanding and
bearing interest for which coin is "not ex-
"prcssly stipulated" The older six per cent
bonds specify coin, and the Government has
no power to call them in until 1881. The
five-twcnty bonds Of 1869. about which there
was dispute, have all been called IN, and, eX-
ccptnc about 1921 GOO on which interest has
ceased, have all been paid AS to the cOnsols
Of 1865, 1867 and 1868, issued in exchange
for scven-hirties, all dispute was ended by
the express stpuati0n Of the Public Credit
Act of 1860, pledging the faith of the Govern
mcnt for their payment in COIN Ali bonds
subsequently issued specify COIN Therefore
there are now no United States bonds which
can be paid in greenblcls without naked re-
pudation of a contract. But If there were,
such payment would nevertheless be dis
honest.
H. United States bonds promises to pay
coin with interest United States notes green
bacBs) are promises to pay coin without in
terest. If has borrowed money Of his
neighbcr ard has given note binding him
self to pay interest regularly, and the principal
Mt maturity, his ncighbor Will think him n
swindler Il he attempts to discharge that note
bv another promise to repay the principal
without interest. \ government might have
the power to compel a similar substitution OF
demand notes, not bearing interest, for in
tcrcat-bcaring bonds, but it would be none the
less swindling to exercise that power.
Ill. ANY increased issue of lcgal-tender
notes. whether for bonds, or in any other
mode, would be IN act of dishonesty and bad
faith. For the value of such notes depends
very largely upon the quantity issued. If ey-
cry person could gather up and cart away
erceabaclls rs freely as dirt or dead leaves,
nobody would take grccnbacl.s IL payment for
property OK labor. Hence, without limitation
~ 10 nrantity, they have no value whatever;
with that limitation, their value depends in
part unon the demand for them in use, and
in part upon the faith that these promises to
nav coin viii he redeemed. If they sink in
value, labor is robbed of part of its wages,
and the millions who have saved something
in savings banks, insurance companies, build
ing associations, or other investments, are
ro5h Il of part of their savings. Therefore,
Government has made two formal pledges
OF the public faith: first, that the amount Of
creonbackS issued shall never be increased
second, that these promises TO pay coin shall
be kept by payment to every holder vino may
demand the coin, on or after January l, 1879.
But for these promises, ald the faith that the
Nation viii keep them, wages would be worth
much less than they are, and all the savings
of labor, now payable in lcgal-tendcr dollars,
would be worth less because the dollar"
itself would sink in value. But any issue of
lcgal-tcndcrs, in excess of the amount fixed by
law, would he violation Of tine pledge, an
act OF bad faith and proof that Govern
ment could not he trusted in any of its
pledges Moreover it would increase the sup
ply of notes in proportion to the use for them,
and thus render them less valuable. In both
respects, it would rob those who have saved
money, and those who are earning money, by
taking part from the value of the dollars"
due 10 them.
At another time we may consider the no.
tinns that incrpaso1 sSups of manor will helm
business that Government can create abso-
lutc, or fat" money. and give it value; that
National banks wrong the public and that de-
prcciltion in the value of real estate has been
wholly caused, and can be justly measured, by
changes in the currency. That such ques-
tons as these still perpex the minds of many
honest and intelligent men, recent events have
clearly shown.