Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-12-14
CERTIFICATES OF DEBT.

for popularizing the national debt. 1t au-
thorizes and directs the secretary of the
treasury to issue in exchange for lawful
money of the United States that may be
presented for SIGH exchange, certificates of
the denomination of $40, bearing interest at
the rate of per cent. per annum and con-
vertlble into per cent. bonds described in
the refunding act, and the money received
shall be applied only to the payment of $50
bonds in the mode prescribed by said act. If
the issue of these Understanding certificates
could be confined to those who are really
seeking investment for small sums of money,
with the Intention of subsequently convert
ing them into bonds of the United States,
the plan would not only be feasible but ad-
visabIe. But past experience shows that the
issue of Understanding bonds or certificates
of less denomination than $50 does not
pay. Instead of being kept as an invest
ment they invariably enter into and become
part of the currency of the country, and
from the fact that they bear interest they
are mora valuable than greenbacks Or ma
tional bank notes, and would be sought for
to the injury and depreciation of the remain
der of the currency. Then, too, capitalists
would seek them for purposes of speculation.
and the real purpose of their issue would be
defeated. They would be apt to create an
unhealthy imitation of the currency, variable
in volu'ne at the caprice of the holders, who
would mainly be composed of spectators.
and thus uncertain monetary conditions
would be produced that would have ten
dency to unsettle values in all lines Of trade.
One necessary condition of financial pros
perity is stability both as to the volume and
value of the currency in circulation. Some
think that the present volume of our cur
rency is not sufficiently large. This may be
the case. But if it is to be increased we
must have definite understanding on the
subject. system must not be inaugurated
that opens the way for large fluctuations in
the amount of available currency, nor must
currency be issued that would of necessity
be at premium over the regular currency
issues of the government. There are already
too many opportunities for speculation in the
money of the country, and we cannot afford
to create more. We should rather seek to
lessen the chances for speculation and to
make our currency stable and unvarying in
value, representing its face value in all COM
nerciai transactions, no more nor no less.
The fluctuations in the money market during
the past fifteen years have been the chief
cause of our past distress and of the uncer.
tainty of investments that, under ordinary
circumstances, ought to be perfectly safe.
While in q few instances the issue of GER
tlhcates such as are contemplated by the
secretary might encourage habits of economy
and popularize tho government bonds to a
certain extent, we doubt if in the end their
issue would prove beneficial. AS We have
said, the bulk OF the certificates would find
their way into general circulation, and would
be seized upon by spectators either to
create strlngency Or an artificial freedom
1.-THE markets. It is no hardship to require
investors to pay at least fifty dollars for
bond. That sum is as small as the govern
ment can proitably issue, and few who have
the] disposition to invest in such securities
are unable to raise that amount. Besides,
the larger sum is far more likely to be al
lowed to remain in the bond than smaller
one. Our financial system, too, is sufficient
ly complicated already without any new
issues of obligations. We have already
thi1ty-six different species of government
bonds, exclusive of those issued in aid of
railroads and for other private purposes, and
to add to them would only add to the con-
fusion that already exists in the public
mind. We can afford to let we'll enough
alone. Under the present circumstances the
subscriptions to the four per cent. loan are
averaging over million and quarter daily.
Before year shall have passed-unIess we
meet with some extraordinary and unex
pected national disaster--it is safe to saw
that sufficient amount will have been taken
to redeem the whole amount of 20 bonds
outstanding. Let us have done with tinker
ing, for time, at. least.