, 1880-01-02


t1cmptfon Of its notes. hut tho grccnback Is
further protected by the wl,ole credit md
responsibility OF tho United Stntes Hoynrn-
nlent- Should there bu my sudden demand
for coin so rs to exhaust or wcnken tho sup.
ply In tile Treasury, the SECRETARY fs author.
lzctt and required by INV to issno md sell
nl the 3, ~, aild pcr cent bonds OF tho
United States necessary 10 ornble him to
malntafn n coin redemption OF tho legal
tclltler, grccnbacks Nothing, Their, hut an
utter failure OF tho National credit, ca,
arrest tho continued specic-paynnent or re-
tlcnptlon Of tho lcgal-ten,ler grccnback.
These Important facts, we'll known to Mr..
Rublceand every he lnanagct,
to forget or !Kn0rc, mud unless he did forget
them It wns nnythlng but honest 10 Ignore
them.
lit regard to tho notes of the I}ank Of En-.
glatNi, WHEN one-llalf Ut u,onl hnvo been
sent In and redeemed Its gold supply becomes
exhausted, and tho Government Is then called
upon to fntcrposc It's authority, directing the
bank to suspend specfc-pay,ucnts, leaving tho
otlcr half nf the wi,otc Issue Of the Bunk OF
England notes outstanding ard irredeellinblc,
but still lcgnl-tentlrr for .lebts.
II the redemption of tho ,lote In coin on
demand DO III fnct to make TINT note n "gOd
ccrticatc," rs Mr.. X. curiously alrns, then
the grernbacks are yastly1norc entitled to the
quality Of gold ccrtilicate than Is the l}auk
OF England 1lotc, which Is protected by q
coli deposit cqua1ing only 20 per cent Of tho
outstanding pnper, and which, wl,cn that
deposit Is exhausted, becomes frrctlccnlablc,
bccause OF tho instantaneous suspension Of
spee'e-lMynlel,ts. Tho grcclllnck IL, on the
contrary, to Ec redeemed Ia the lust cent il
coi,l The Da,k Of England notes srg IT,
deemed olly to tho amount Of gold on lland,
wlltcl, Is rarely more a,Ml frequently much
less than one-Elalf tho amount OF the out-
standing paper.
II tic notes Of the Dank Of England were
not lcgal-tcndcr, then gold would be tho cx.
elusive dcb.-paylng money, and, us tho bank-
notes nro rcllccnlablo on dclnnntl In gol,
there wOnEtl b9 constant demand for tho
coin will which to pay debts, ntul this ihl-
portant pntnt Nfr, H. also conveniently over-
looks The notes being 1cgal-tentlrr for NIL
debts, and lcgal-teltlcr In which all other
banks can redeem their notes a,ul debts, the
PAPER Is used Instead of the gold, and thcsu Is
100000 600 of legal-tendcr bank-notes III cir
culatlon, when, II tic notes wero not legal
tender, there would be but S75, ,000, 600 Of guild
m Tim
not 'egnl-teNder, and there being two dollals
Ut paper III circulation to the ono dollar of
gold to redeem it, tho demand for gold not
only for export, but also for domestic pay
mcnts Ut debt, would leave the bank with
nearly empty Golfers, particularly whenever
tho market was scarce or any Hurry in 1t.
The cancellation Of ench baMk-noto when
redeemed Is so seriously magnisled by Mr.
Nublee that 1t would seem lie considers 1t a
matter Of consequence. Tho bank-note all-
swerlng nil tho purposes OF coin, nil the spare
gold In England, whether in coin or bull
Ion, finds its way to tho vaults Of the bank.
Tile golll Is mover drawn out except for cx-
port. It Is drawn out by surrelldcrlng NJ,
equal amount Of notes. But, willie these
notes nro redeemed at ono counter, there IL n
stream Of new notes paying out at tho next
counter In exchange for gold purchased or
deposited. The cancellation Of tho note Is q
inere n.attcr Of bookkeeping, old preca,l~
tlon which, like many other old things, llas
survived tho reasons for its original adop-
tion.
We think 1t perfectly clenr that, II there
wcro lto legal-tenlcr paGer money In Eli
gland, and gold were tho exclusive debt-p -pay-
ing currency, tho Bank Of England would DO
iii state Of chronic suspension, aild the gold
coin, instead Of seeking deposit III banks us
now, would be boarded for debt-paying pur-
poses by every ,nan having debts 10 pay.
Mr. kublce will find that our explanation
OF how France protects ller supply Of gold
WIS, tllat 1t was duplicated by ynst nn,ount
Of legal-tcntlcr silver. This silver cfrculates
Though Its bullion yalue IL less than gold}
a'l over Europe, and is legal-tenter In
various other Statesof Europe. Tho amount
egal-tendersilyerl lncirculatlon III Francois
now S:AU, ,000, exceeding the tota1 amount
OF our greenbacks.. The presence of this
amount of iegal-tcmt1er silver il n, absolute
prevention of any riso III gold for currency
purposes. For every bonle purpose, ansl every
purpose except export, tlle silver answers
equally with gold,-just US our grecnback
does III this country. And, for TINT nlntter,
French legal-tender silver passes current
anywhere In Europe almost ut ln.r With gold
the discount not being X per cent, because
II can bu returned to Frnnce and exchanged
fur gold. Abolish this fund u Icgal-tclnler
silver. and make gold the solo sta1,d-
ar.l n'M tho sole, agol,t In tho pay
nle.it Ut debts, anu tho gold now III tho
unnk ut Frnlice would beQllckly Withdrawn,
us every man woulh seek to protect himself
with tho only currency III whtcl. he could
ply hls debts, 50 long ~ tho people Of
fratco have $3j1, 1,oo1000 Of lcgal-trnder
lnoney-wl,etl,er silver or papcr-in addition
In frf.ti fhnra, An,t ,,n tn,nt, S.,,.