National Republican., 1878-01-15
The Tcn:Dnllnr Ronds.

IL seems that there has been some design or
desire to pass of the small denomination low
rate bonds proposed by Mr.. SHERMAN as in
conformity with the policy heretofore advo-
Gated by Mr.. HENRY C. CAREY and Hon. W.
ID. KELLEY. The difference is that whereas
the former are TO be gold-bearing and not con-
vertiblc, the latter were to be ecurrency-bcarip.
and incontervcrtiblc at the will of the holder
into Treasury lcgal-tcndcr notes. The follow
ing letters appeared in the Philadelphia Press
Of the nth instant:
10 Htc Editor gfth Pres:
SIR-lay your notice yesterday morning OF secre.
tary SHERMAN's new project. you state that II aC.
cords with suggestions that at some former period
had made through the columns Of the Pyess In 50
saying De nssurrd that you are in error, the only
measure Of Il popul lar description that have ever
advocated having been that Of a bond rcdCCmube
at the pleasure Of tho holder in grccnbHck notes.
The Treasury has wasted 4 dozen YEAR, and almost
hundrcds of millions of dollars in the effort Al
forcing our bonds out Of the hands of our own
people and into those Of foreign banks aud bank
crs with daily diminuton OF that monetary in.
dependence by means of which we had been
enabled to pass uuhurt through the terrific British
crisis of 1866. The folly not even the wickclness
Of that course ofprOcccding having become clearly
movement, whoSS failure, in the absence Of the
principle of eonvetibility, may safy,yGe PrG1isied
PHrlADElprIA January IL, ISIS
To he Editor QfHc Press:
sir: Your announcement In Fridays Press TINT
the $40 r-pcr-ccnt. Government bonds proposed
ny Secretary SHERMAN are AN excellent idea, long
ago proposed and argued for in the Pres by our
venerable townsinan. HESRY G. CAREY, myself. and
Others, doubtless caused Mr. CAREY ms painful sur
prise as 1t caused me. am not conscious of hay.
Ing ever written OF uttered sentence that could
give sanction to the idea OF so terrible scheme
To induce the working classes Of the country to in
vest their earnings and business men and corpora.
tons to put their balances into long bonds at low
rat Df hp Treasury
into an agency for making every such thrifty
laborer and business mnn or corporation prey
| to stock brokers, for, when the owner of Il long
| bond wishes TO convert 1t into money, he must
take the risk of prices ruling at the stock board
and pay the broker who makes the conversion for
| him commission which would be as large OH u
$40 bond II would on the 500 bond of the richer
| man. What have advocated, AID what believe
| MIR. CAREY and those who agree with us have pro
| posed Is that the Government should receiye the
savings OF the lAbOrlag classes and the balances OF
business men trustees, and corporations, at low
rate of interest, payable on call, principal and in
lcrest no less and no more, and without the inter
ventiun of a broker aud the tax consequent upon
| such Intervention. In other words, have laborcd
You will perceive II YOU will do me the favor to
read pages . TO u inclusive Of my recent pamphlet,
entitled Causes and Authors of the Financial De.
| preston copy of which ! mail herewith,
| to restore and extend the policy of Mr.. Secre
tary CHASE of receiving temporary loans from the
| people rcimbursnblc on demand with low rate Of
Interest, My objects have been and nre in part Us
| follows: First 10 give the laOuring people safe
depository for their savings with the certainty that
|
| ing without abatement, and with Il moderate rate
Of interest on the day ON which they might need II:
| second, 10 give the Government the complete con
troll Of Its loans, and prevent the contingency of Its
| having to buy them in at extraordinary lntcS OF
| premium, as II has dOneSUng bonds In the past
| and third, TO thus place our national debt in the
| hands Of our own people. ! have urged these
| measures in season and out of season. because
have believed that as Mr. CHASE said In his last re.
port Secretary of the Treasury In these several
ways may even such great cyilsps are brought upon
us by rebellion De transmitted by wise alchemy
| into various forms of utility"
| As the advantages Of these deposits become bet
ter and more generally understood the loan In this
form will, doubtless. In the absence OF restriction
| be largely increased, and the possibility of de-
mands for reimburscmcnts beyond means 10 meet
them can he fully provided for by all increase Oi
| the existing proportion between deposits and re-
serve. such All arrangement, the Secretary in
ClineS 10 think, would operate bcnehcially by In
Crcnsing the amount OF currency when unusual
stringency shall require increase, aud reducing IL
amount when returning ease shall allow rcduc
tim.
Regrctting thatf should have, at any time, used
| language which could have led You 10 suppose 4
| possible that could favor scheme which, In m,
opinion, i frnught with the graves dangers 10 thu
honor Of the country and the savings of the pCO
pie, beg you to give this reference 10 your para
graph place in the columns Of your widely CiTCu
ating Journal and obigc yours, very truly,
| WILLIAM D. KELLEY.
WASIIISGTOS u, c., Jan, ~, 1873.