The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1881-04-07

less coin in the country, outside of the
Treasury, to supply the needs for coin
three, or even two, years ago than now,
But after two years experience that
question, | think, may be considered
pretty well settled, and that is perfectly
safe TO presume that the people do not
prefer to have larger part of the whole
volume in coin than now exists Indeed
does not coin now oftener 90 to the
banks Of the Treasury for paper than
| paper for coin And is 1t not very CT rtain
that If the paper volume were all
Greenbacks, 1t would be preferred all the
time to coin-provided also that it was
so limited in volume as 10 be certainly
convertible, or, which is practically the
same thing 30 limited that naturally the
volume would be supplemented with
more or less coin ? The fact that green
backs are non-taxable makes them pre-.
ferred, not only for reserves, but as cur.
rency. But the point on which / think
the whole question turns is that which
have made; that greenbacks will not
60 to the Treasury for coin unless the
people prefer to have larger part of the
SAAAVhSJ bhCy ubO GOlu anu u buuhllGI
part paper. They will not go to the
Treasury for coin for export SO long as
the paper volume is within the limits a
metallic currency would mark for itself
if there were no paper, and the proper
tlon OF paper to coin was not greater
than the pc ople, in the exercise OF their
choice, under the facilities offered them
for conversion, would choose to have it.
l think these principles can not be gain.
said. And l maintain, and it manifest.
iiy is the case, first, that the paper volume
is now far within the limits at which
metallic volume would stand if there
were no paper; and second, that it is
we'll demonstrated by two years expert
ence that the proportion of paper is not
greater than the people choose to have
it. No instance has occurred where
even a desire has been manifested to
put off greenbacks; but, on the contrary,
in the panic of 1878 the struggle was to
get greenbacks. So, recently in New
York there was no run for coin. What
was wanted was legal tender. A Black
Friday scare would have been possible
with even fourth part of the coin in
the country, outside of the Treasury re-
serves, there now is. And I hold that it
is not impossible to produce a run for
coin by presenting greenbacks without
there lie first material expansion of the
paper volume. OF course the law holds
always good that paper volume greater
than would be the distributive share of
the metals country would have if it
had no paper will be deprecated, and
such volume can not be kept convert.
ible.
Besides all this, there is the power
vested by law in the Secretary of the
Treasury should the occasion for it arise,
to sell either class Of bonds provided for
by the act of July IA, 1870. With this
resource at hand at all times, why is it |
necessary to keep locked up vas' store
of the precious metals to meet an impos.
sible demand from the presentation of |
greenbaCks ? The interest bearing debt
is over 81 $50, 100000, nearly 5000 000,-
900 of which bears per cent. interest.
Fifty or seventy. five millions, or even
more, of the surplus coin might,it seems
very clearly to me, be used in the pay.
ment of these bonds without endanger
ing in the least the convertibility of the
greenbaCk. By applying such part of
the coin accumulation, together with the
monthly excess of the revenues, all the
six per cent. bonds can be paid off in
little more than a year, and the interest
forever stopped. Moreover, the coin
thus paid out would be 30 much added
to the ready working capital of the coun
try and do as much good as so much new
metal turned out of the mines.
And, finally, who, having the money
wherewith to pay debt and stop the
interest in his pocket, would not rather
do it than to keep the money and let the
interest run on And why is not such
a policy as wise for a nation as for an in.
dividual2 I have the honor to be
yours, very respectfully,
A. ]. WARNER.
#loo Nop,nfroIIarJs