, 1879-08-02

Eil8QWuEIG WI f3ilUlk6u - EOlA4AuA4E6t4VA
from Judge VAN H. H1oaras, explaining md
defending his peculiar financial theories IS
presented before the WR1oHr Investigating
Committee. As now elaborated aud revised,
it contains much not found in any Of the
reports Of HIS remarks, and omits considera-
bio that he said. Ho denies holding "FIat
opinions" but proceeds to advocate practices
that lend strnight to Fiat currency. He
says the groenbachs should bo rodsoined In
coin or in bonds; and, in his reported state.
1nent beforo tho Committee, he advocated
m iasuc Of 1000 millions Of such paper.
Aaked by member Of tho Committee how
the Government could put so enormous
volume Of paper in circulation In timo Of
pence. when the regular revenues exceeded
the expenditures. he replied
"Lct the Government pAy ont St, 000, 900, 600 Ia
liquidation Of IT, running expenses Tor few years,
and in the meanwhile tD}ieet MI taxas. Goyern-
mcnt might lsapeovo hatbors nalld post.roads, aud
In other ways diiusc tho currency in tho county,"
Undoubtedly, by ropoallng tho thrill mud
whisky-tas, and giving Importers FREQ trade
and the public FREQ whisky, for fow yoars,
tho 1000 millions Of groonbacks could be
Issued by the Government, and tho popular
thirst could bo chonply assuagcd. Whether
tho wages OF mechanics aud faotory.handa
would ba increased to tho degree he deems
ossontial TO their prosperity under froo i'm.
portahon Of European goods, is polut
abont which thoro may DO differences OF
opinion.
If tho proposed ], 1000 millions Of currency
wero made redeomablo in bonds, tho plan
would provo to bo tho worst contraction
| scheme that ever .was devised. As fa8t as
tho notes wcre Issued. thoy would rush into
| bonds, and remain thore. At one time It was
| n popular idea with grecnbackors to got up
| an intcrconyertiblo baek-and- -forwartl-ao
bond; but, after a littlo reflection, the more
Bagactous GEeenbaokors Baw how disastrously
tho thing would work In sucking oil the
currency into bonds, and they abandoned
| tho scheme aud foil back on an irredeomable
Flint currency.
With tho C80 millions OF paper money we
now haye, aud tho proposed loon m illiona
of Judge H1oa1ys, wo would havo 1850
| millions to DO kept ut par aud rodoouled IN
coin on demand. With such tremendous
mnss OF notes tito irresistible tendency would
be to dsprocjate rs co,nparol with coin,
pr;cos. nn1er the influenza of thie enormous
volume of uotoy, would necessarily advance
in nroportjon to tle imitation of tho popor
Eyarythinr would 40 booming UPWARDS.
Tho cost Of manufacturing would quickl,
forca nm tho nrico of the products to tlt
uolut whore the merchants would ind IL
ehoanor to import thoir poods. And on,
mochnn,ca n.,i1 onnaront,v loroa waoas. I,
monov Of small purchasing nower. vou1t
,,;ecoyor ,banaa,ysa t1;schoraod md tn
Tootor,o. cloxe1 M viii, uc}, nr;eca, thai
an,n,ov.ra non1;, mt 1,oo1n Ia comnete viii
tortlon on,noti,ora
r1,a ,,a,o,co n tro5a vo,,, ;mnod;..e,,
t,r,, oo,;nat th;. oonntrv nd wa von,d ar
nort far loss mi, imnort creat,v moro Th
coin vonid la ahinnad abroad 10 INV for III
o7cosa NJ imnorts. and nfIor Il VIM o1oana
~, ~ II, conntrv wo worll scn,l honda :,
E,,rona .na aoIl tta,n for w,,at tbav wonl
fotcb md viii, tba nrocou,a Inv mora e,la