Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1878-11-06
her elections are much pleasanter reading
for republicans than they have lad from
like sources for a good while.
Paper Money.

reenbacks are issued, or lhdlrect'y'
trough the banks, as national BANK hoteS an
Pa mt in circulation. Assuming that the
eople will not at present adopt any paper F.
,onev except what is redcemablc.n some- M
hing, the question is narrowed to " con- of
Iteration of the propositions for Il paper II
money redeemable in coin, and paper SC
,onav reJeemable in or eXchangcablc ior d.
bond bearing interest. The latter WOULD ri
# course. be issued by the government
he former might. OF might not be 70 !,
issued. Il
Asto the paper money eXehangeaole n
FIR 4 bond; and take the proposition least i
to those who believe 'hat f
paper money should be as good as solu' f
viz. n treasury note, not legal tehuer' (
and interchangeable with bond bearing
coin interest, and worth par in coin IN Tie
r,orket It is assumed that there is to be
M limit to the amount of this currency
oxccnt the demand for it; and its convert
jbili,y, it is claimed. will always Keep the J
amount in circulation exactly equal to the
wants of business. When there IS more
currency than the people need, it will be
changed into bonds; when there Is less
the bonds will be changed into currency
The government might get part OF these
nav treasury notes in circulation by With |
drawing the greenbacks and replacing
them with the new currency. 1t coolo
then compel the banks to redeem ana
Withdraw their circulation, and then oHef
lis currency bonds ut par for coln' ana
everybody who wanted II treasury no'c
more than he wanted coin would, of COURSE
first buy u bond and then exchange 1t lor
treasury notes or the government might
issue the notes directly for their Ltee IN
coin. There seems to be no o.her way by
which the government, with decent re-
, suect for its obligations and for common
+ honesty, could issue this new currency
9 nor does there seem to be any other way
by which, in the first instance, the amount
3 Of this currency could be adjusted to The
% demands of business.
When such an amount as the business
n of the country requires has been once pu
o. in circulation, the elastic or convertible
ia feature of it, in ordinary times, would b
i much more likely to contract than to eX
an pand the currency. 1t may be assume
IN that the bond exchangeable for this cnl
rency will bear at least four per cen
No. coin interest, and the number of p2opi
ba who will be glad to deposit their none
nd on call with the government at that raj
NY of interest will turn out to be large; an
rd of course, money SO deposited will
ev withdrawn wholly from circulation.
me- When money is in demand at high rat
or. of interest, however, as happens in perio
to of speculation, there would be call t
les the currency, and there would then
ave some extent be expansion and Initiation
- prices; and when the rcvulsons ana p'
, to les follow, as they always will such perc
of speculation, the convertible quality
tied the currency, instead of being II mltlsal'
va9 of the panic, would be an aggravation
oos it, as those having the currency Wo'
q oI make haste to deposit it where they COZ
hrt be sure to get it again and get their INT
T,1 est on it in the meantime. In other Wol
,,ns such Il currency would have tendency
,t,o, stimulate speculation, initiate credit,
NOR bring about panics, and the moment
,rso trust began to show itself would imm
{, on, ately and violently contract, and N
. ~ worse the very evils it is advertise
,uso cure. The convertible quality of the
,,toa rency ought, however, to diminish
.a,,. tendency to speculation so far as TIL
on,o the result of money being idle and al
,.>to dant, as the interest paid by the gov
nc IN ment would lessen the temptation to
tbon, the money in other directions.
ali, Some idea of the amount of these l
onnor likely to be called for may be goi
,,,i,o taking into account the present law
-, ~ the bank note circulation. Any ass
- 10 ton of individuals having Il hun
Static thousand dollars in four per cent.
T, can get ninety thousand dollars in
INN to notes, by payingsin taxes, in all,
ii dis over one pei oen' " Se"i' gu" ''''"N
d gov provision t'o amount vi ''.NN NV, Nv,
co f,r lation is constantly decreasing. Tho
+hot yertible bond scheme, however, co
timing every person WHO "''n'' '''' 0'' 10
The pay four per cent. year for it, or,
! Cam is the same thing, surrender bond
,onnl,r ing lour.per cent. interest in exchan
me: in the currency II o''i"S '''N'''' now
l,imod to ply one and Il quarter per cent.
a thon use Of this currency, what problh
= rato there that persons Gun aff)rd to pr
est the per cent for it?
IAN re- 1t is, however, probable tillt the
r1,u,rd with which these bonds can be exc
To-, o;+,. for currency will make them II f
mmany investment WIN 'u0'0 "''o Wv wa
,,o,st,s at particular seasons; and this tie
nv t;,.,- would be increased by the fact tn
C,o,or viduals, without organization into
, no'lod tons, may thus readily deposit the
Tho where they can get them on call.
p.ouo,- way, of the four or five hundred
oo,rt Of of dollars on deposit in the nation;
,te3 for> mostly without intercst-a large
.toa thot would doubtless be invested il
Mic il J., bonds, as we'll as considerable
means the of the deposits in savings banks; a
FROM, the the amount of the currency in us
nd if true be governed by the consideration
! f,r tho stated, the amount that might, in
he Times of great speculation, be put in cir
,aiority in might be very large, and out OF al
and also ton to any wants of Legitimate bv
men to From these probable results OF
,ro we'll verlible bond method of issuing
.anuhlio,n does not seem possible that it Cal
, i,o ;ntor plish the results claimed for it in
ing the people more>s stable cur
that Gen. one more easy to obtain, or one !
vernon by to agsfaVa'e hnano''' P'"'0''
and thot the other hand, it would be IL 9
On There yenience to men having an abu
the Key idle money ana e"'ol' 'n0-n -