New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-09-26
ELECTROMAGNETIC BONDS.


tomorrow morning will publish the following
oiio'po"u'"O0' Boston, Sept 16, 1873.
Hon. JAMES G. BLAINE
MY DEAR SIR: Please TO remember our tax IN the
Senate Chamber last Winter when urged that the Re
publican party should meet the wishes oil the people
the necessities business and the convictions OF large
portion OF the thoughtful men OF the Nation.
Ifyour party had offered plan for the Governments
issuing OF Ill the paper note currency "a docuhe "
which the lest European thought Is Fastening IL mas
not already reached IT, the same to be legal tenaer
everywhere and for every purpose and inerconyeroe
with bonds for long term and NJ OW rate oI
tbe principal and interest of which should be Payaoe 10
coin that would saved US from the bourbon oou'h
what hear from Republican business men conyinees
me that n they could been countenaneeu IN sucn
platform by trusted leaders such Leaders WOMB
plan would have wholly satisfied me- Out IL "ou'u nave
It is sad to see party which has led the world in ADJ
vanced yet conservative opinion qulI us pl'cg aI 80
behind the best financial thought OF Europe cmgng ~
obsolete N not exploded theories, losing the helm IN de
fence OF ideas that ten years hence men will smile at
One great concern with me IL that thus they ibsuo
Southern Bourbon rule for the next dozen years
Wealth here almost omnPotent and ITS ORGANIZATION
will smash rim gs Journals and parties, ana tat helIer
"'' W WESDELL PHILLIPS.
AUGUSTA ME-, Sept %, 1873.
WENDELL PHILLIPS, Esq: -......,,o, IN the
MY DtAR SIR remember INC d no. "a recall
to possibly fully than then slaea-nSS nr
currency. am aware that many MIS- ihI IhporV Ths
Yourself have approved and adVOcaleu ths t neo -
power TO hold bond winch may NJ any mOlnent De ~,
erted into egatender notes for Its face value anu 10
have egal-tcnder noles when may AZ dh1 a.,
eR 96 But 1 1o scheme Is os deccpve
delusive, and Will briefly state the oDlecuohs "no"
seem 10 me insuperaOle
OBJECTIONS TO THE SCHEME.
Firs-I the bond be sufficiently high rate Of inter
est TO float the currency 10 an approximate equal
ty with cOin-say per cent or thereabout-the lneV@
bic tendency will be for the currency 10 run into the
bond rather for the bond to be- exchanged TOT cur
rency aud this with such force and volume at critical
times compel scarcity Of notes, an eyer-recnrrng
stringency in the money market and general nsabil-
ity in affairs.
Second-ff you make the bond Of a rate so low as to
avoid the tendency and the danger just stated you OF
abandon ali idea Of having your currency ~ pa.
with coin II your intercOuYeTble bond is worm Out
rs 50 cents the dollar IA con- YOu thereby TX inc
vaiuc OF your currency at 20 or - per cent DcoW p
ana you Danish from your circulating medium an
sOlUtely and finally 80 that your bona De one llat
Will float = currency at par with com, II VIII steadlY
aud rTesistbly tend to contract it, volume Aud u you
seek avoid THIS result by lowering TIE rate OF interest
on the bond Won render equality with coin impossible
In either event the scheme would work its own dcstruc
tlOn-,wltt aud sure.
Third-No device was ever conceived that would give
q more complete advantage To unhealthy speculation
- all Knds tue inie convertible BOND. several
"iocS-up" OF grrenbachs by WalI-sj. combinations,
with view 81 financial ends which were At war with
the public good. 80 promising ana 80 pfohiADe W're
these ends thai the spccudtors could ah0rd 10 nave
many millions 81 Eeeubaoks lie Idle IN order 70 force q
siriugency N the money market. Your ntercOnyeru-
bic bond would open the way Tor this Glass Oi financial
operators TO "lpcA-p grttnOdckS ana nave Tue GOV
eminent Pay them interest on thc "hoit hn"uhl' "he
they might be CouspTug TO deraugr tue business oi
continent ana uepiess ie Viiue 81 t.s'y IN, '[op
the land In otner words iOhr theory WOud locr iHe
Government 10 be an acc0mplco iu every Rdnbhhs
devised In Wal-sL against the peace ANA pros
perItY OF the country.
Fogrth-Eyery year the Spring business closes and
summer comes upon US there Is vast accumulation Of
money tuas lies Idle three or four months AZ the
financial censro, IN the vaults OF the banks, IN the
- the strong boxes Of insura nee companies. During
that prrodueary ourfOucu Of tRc ycar-here are from
dollars New-IOrk dud the other great money crurrs
dollars all belong 20 rcn men. Your utter
convertible bond would provide an admfHblc mode Tor
,I M 9t a season when tb.y cannot get it
FROM any other source. But question whether 1t
would quite fair 10 the whole people during the
bot months nf summer I'M order 10 insure 70 the wealthy
capitalists OF the country good income ON that large
tbry are ejoin fhe mountain air aud the sea breeze
Itdh-The mtercOnyeruDlG bond would lead 70 post
domestic business OF supply In every day life. In
present system o large sum Of money Is carried 40 AL
limos deposit without interest. Nhcn bls are pre-
scniod from the "bu, cher. the baker or cpndcsuck
makcf," the man having money ON deposit not drawing
readily pays thcm or there no pruht "a hin
In putting on his creditor, but one ttach every man
has surplus OF ready money that no can deposit
with the Government ana draw interest thereon aud
ihc inevitable tendency ls 70 pace mere ana Keep
there long creditor eau De denied, avoided or
evadod. The advantage Ia al branches 81 trade ana
labor 81 promptly pa4lhs eiAl olla ny uIANInk inter-
est T. incalcu.abie The mtsrcOnVcrtible bond would
once
paid by the Government would 20 INTO the pockets Of
the ucn and the intercOnVertbie bond would again
make the Government iccOmphce with the capitalist
IN Withholding his honest dues from the WORKING man
the Government meanwhiie paying the rich man inter
est the money that honestly belonged IN tho poor
maI's pocket
hastily summarized that no form oil currency cOull DO
devised would bo constant and soOppre,syc as
thu lntercUuyertibe bond. in the taxation 10 would
pose on the people, ~ SCub HI o1cy a SGe
duap
waiting more permanent and moro profitable Invest
meut. In short the whole scheme would tnd 10 making
~ ,,,J ,cnT Inc GENERAL odum Ui taxing the MANY
for the ben OF the few OF eXACting from the poor
contribution pay interest on the rich mans money.
al time When the Government did need could
not use IT,
no WAY PROVIDED TO SECURE COIN.
You urge that party should have taken ground In
favor of 1.-THE Governments Issuing OF all the paper
currency, the same to be legaender everywhere and
for every purpose" Your language imDes more than
you really meant 10 convey. for your everywhere" Is
necessarily limited 10 country and you proceed
Yourself To limit the "le-tender for every purpose"
by declaring that the principal interest Of your in
terconygrlible bonds shall be payable in coin" The
moment you lake ground that tue principal and in
terest the bonds shall be paid in coin, yOu separate
yourself absolutely aud rreconcably from the advance
guard OF the reenback school OF nancers who refuse
"a incur any obligations 10 ray com. And Will OBJ
serve that while your theory proposes 10 pay Doth
provide no way 20 secure the coin, but make
your papemOney legal tender for customs and all other
dues You seem TO approve the wisdom OF Republican
legislation IN far 90 make Government bonds pay
able com, but you ia to go with the same legislation
III providing efficient and certain mode or securing
the coin note this as among The most glaring defects
of your intercOuvertIDe teOry-One among many that
rener It's adoption by the Republican party impossible
Moreover The scheme would have proved lamentably
insufficient 70 appease the demands OF the fiat money
advocates IL would not even have proved n FOp to
Cerberus" and 10 have resOrted TO It would Justly nave
exposed the Republican party first 10 rldcuc and then
| 10 disaster
coin a means OF steadying your system OF inter
convertible bonds, why are you not willing TO
admit people to tue full advantage OF Tree of
l IL -L.n .l.-LE. Ill