The New York herald., 1878-08-27
could be maintained at par in coin issued directly

WHY THURMAS's PLAN Is WRONG.
His plan would dIrecll violate the provisions OF the
loan laws under which both United States bonds ana
notes are issued, aud which limit expressly the
amount OF United States notes to $40o 00o 0co TINS
would be violation of the public faith, and would
impair at once the public credit and do inconcevaoy
moro harm than is could give profit to the govern
ment.
This scheme OF his encounters directly the decision
OF tue Supreme Court OF the United states, aud
would no doubt. be held rnconstitat.ona because J.
provides for a very large increase OF United States
notes Ia time OF profound peace, where DO sucn ex-
gency as is conlempred by the constitution or deci-
sion OF the Supreme Court exists 10 JUSTIFY sucn al
issue.
II would at once drive out OF existence the whole
system OF national banks which have been tue means
alone by which State banks have been prevented
from issuing circulating notes. The only franchise
the nation4l banks receive from tho government
which induces them MAINTAIN their corporate ex-
istcnce the right und, Or limits fixed by law 10 issue
circulaling notes. Take this from them and they
would at cease without exception. TO De national
banks and would be Organized again, as before lhe
war INTO State 0srks' sSm ~m suSn pHwsrs "syabIs rs
effect OF this policy would be 10 revive
again the system of State banks without any
common organization, without any security for their
notes. upon terms any State might prescribe,
and thus all lhe evils OF State bank money which lhe
people experienced before the war Will recur again
Nearly generation has passed siace the ucongruous
system OF paper money which existed before the war
was swept away by the national banking act 1t is
safe say thai the Injury done to the people OF the
United states by the failure OF these banks, by the
local circulation and by successful coanlerel,ing
was annually greater than the interest OF the entire
national bank circulation OF the United States.
GREESBACKs AND BONDS
Judge Thurman computes now much the United
States would save II IL issued 1922 0oO, c0O'more OF
greenbacks ana redeemed that amount oil bonds. l
not stop TO examine this computation, but only
wonder why ne stopped at $322, ,OoO, 00o Why not
save entire of tue pubic debt by issuing
grsenbacks Tor the whole oil it? Why not repudiate
II at one? That would, according TO his computation,
save The entire interest OF the public debt or
loss oil national honor What assurance has hc
that sS22, 100000 viii satisfy the more advanced
huntQ nf N ma
S322, ,000 00Of VIII he claim the right to pay the
bonus par with them? Does he deuy the moral
and legal obligation by winch they are to be paid in
| CON? Does he propose 10 repudiate the ACT Of
| 1863 Tne immediate effect oil the commencement
| oil such would dcprecate the notes lower and
lover, would widen more and more The gap between
| the notes and CON, would revive aga,n tho dis
| gold Tor The bondnoider ana aepreciated taper
! money Tor tue people 1t would at once
stop the funding operations under which We
save ops-thpd OF the interest," Of ths national debt.
| No would buy eishcr tour or Ave or ten per
bend Me facc OF An ACT Of rspudaion Again.
as the notes dsprscate Il becomes more diicuit TO
| provide coin for the PAYNE Mt OF the interest, or
would he repudiate the ooigaton to pay the interest
backs ior customs duties. Win he then, buy com
II so his poioy w'il already nave aavsnS.d
so so' ssus ssae 'I r.asousr as " Judge % Thurman
| ought fairly to answer before ne persuades
Inc people 10 embark IN his scheme He proposes 10
notes, without any provision tor their pay
ment, when our revenues are ample to meet our ex-
penditure In time OF profound peace, when there is
such course, TINS merely to the Interest of
per cont $322, ,0u0,O 700. But this very act If
OF Jour per cent bonds with winch to pay an equal
amount OF SIX per cent bonds, aud 10 this work an
$8 0U0 900 year more than The entire pretended saw
ing by his proposed policy.
AGAIN, what moral right has the government Of the
Unted States to require It's citizens TO take Its notes
money and standard OF value merely Tor the
purpose OF savug The interests OF these bonds In
time Of may concede this, but IN time OF
peace there Is legal or moral foundation or such
claim unless the notes are maintained at par and re-
deemed AT par. Is not the United States aDo to pay
The interests otis notesY
Now these the objections stated the national
banks by Judge Thurman, and my answer 10 them 1t
pack again 10 lhis:-Shall We have IN the
United States a currency redeemaDle IN c0nf VIII
save interest bear In The future all the evils OF
an irreooemable currency, tear system Of ban ks
infinitely better than any ever before enjoyed In This
country. compel these banks to call III their loans
close up and ada 10 the distress OF
the times by dangerous ana almost Revolutionary pro-
ceedings against corporations OF our own creation
tribute 10 general good by paying large and
by acting convenient localized agencies o loans and
OUR BONDS NOW HELD AT HOME.
AT time II was estimated that the amount OF
United states bonas ned abroad approached
900 000, 000 Two years ago the Renera estimate
sbout $780, 600 00O Now, aer the most careful
examnatlon, It IS estimated somewhere near
500, 900, 900 $3.50, 100000. The common lear ex
pressed lor the success oi any plan OF resumption
was that loreign nations could ~ once by return
OF our bonds exhaust our gold and thus deIeat re-
sumption, but TINS NO longer feared when the
plus exports tor single year would pay OIL every dol
lar oi our national ocbt held beyond the nmits
OF the United States. Last winter, when an exsgger-
ated fear prevailed IN Europe Rs 10 The elect OF the
SILVER Oil $50 0o0, 600 OF our bonds we're promptly
absorbed by our own people in sixty days; and, al
though TINS stopped the sale ol bonds ny the Treas
ury, It strengthened our position by bringing them
home.
Another favorable sign Of the times Is the very
large Increase Of domestic production, both OF tho
farm aud OF the Work shop, which not only nil the
place OF gooos heretofore imported, but enable us 10
compete With foreign nations In their own markets.
REDUCTION oF INTEREST OF DkBr.
Our progress toward resumption acconp anied by
Increased nasonsl credi aud by large redastion Of
the Interest OF the public DEBT
Under the RetundinS acL which Is designed to con-
vert per bonds into bouds bearing lower
OF interest, nave already sold NJ par in coin,
$500 900 OF i've per cent BONDS, 900 of
iour hall per bonds, 1885, 000 900 OF iourper
bonds the proceeds OF which except 800 900 900
sod for gold coin In hand) been applied to pay an
equal amount Of six per cent doDt making annual
savDg the interest Of the debt OF $40 O00 and
VIC are nov daily selling the tour per cent bonds
directly TO she people upon the basis oil a popular
loan in sums low AS 500. These Douds have be-
come the savings banks Of the people, safe deposit
when needed ana depending upon the honor OF tho
nation, anu, therefore, sale from loss The most
being neid iu small sums by great numbers
OF fellow citizens, and Is distributed
throughout all the states in tho Union. During the
nrst twenty days OF the present month sales Of
four per cent bonds amount ~ $2OOUO 000 and now
have the confident assurance that during thls year
they will excced SlO0 600 000 and will pay oil all the
lvc-twonty six per cent bonus OF the issue o 1865.
BUSINESS DgPREssios.
Judge Thurman says:-
Now ccrtaiuy n will deny that this country has
for the years ured perhaps county
suffer every Of business
in every industrial occupation.
douy thls statement In toto THAT this country has
suffered from depression in many branches Of busi-
ness and IN many industria. occupations admit, but
every civilized sud Christian country In tho world
suffered to greater degree. In comparison with any
nation times condition Ia every respect
Is more prosperous ana happy. II you read the Eng
lish French. or German papers you will 1nd that
OUT causes OF complaint are nothing 10 be CON-
pared with theirs, while In our country
tncre are many circumstances which relieve
the general depression. Let name
some of the hopeful signs oil tho times. The whole
period since tho war, aud before the panic, was
debt contracting period From July l. 1868, 10 July
l. 1873 our imports exceeded our exports ia the
enormous SUN OF 81, ,047 069 2l9. Much OF this was
Tor Silks ana furbelows Contracted In the iatth or
corner lots marked up OF inflated fortunes suddenly
acquired; but most OF II Tor articles that our