The midland journal. (Rising Sun, Md.) 1885-1947, 1890-11-21
The Currency ofthe Future.

To THE EDITOR OF THE MIDLAND
JoURNAL;-It has been said that 10 my
plan for a new currency, .'there is nothing
to hinder syndicate from locking up vast
sums Of the circulation 10 the hands Of the
Government Treasurer while they held his
2 per cent bonds, which might create a
money famine when crops were TO be moved.
And the same syndicate could depress
stocks"
No such result could possibly happen for
my plan proposed no limit Of issue. The plan
reads Issue paper that is convertible into
iuctuating interest bearing bonds, which
bonds may be maintained at par in foreign
Exchanges by the rate Of interest allowed by
our Government" Anysum agreed upon
may be issued and the auction rate of inter
est for the use ofmoney in Wall street
could regulate the quantity ifexpedienr.
No possible stringency could occur in a
plan permitting the Government to issue
money in any quantity as needful. Strin-
gencies are alone possible when the currency
is limited by coin or by the law in specified
quantities. II is the Limitation put upon
the issue that makes a scarcity or stringency
possible.
A syndicate might hoard 5000 900 900 of
these convertible bonds at per cent, but
the demand on the Street for money would
enhance their value and lessen their rate Of
interest, as extra bids for Tie money into
which the bonds were convertible would
put them above par aud the Treasurer
would then lower the rate OF interest allowed
upon them. If the boarding continued
still lower rate ofinterest would be announc-
ed, until no interest al all was allowed, then
the boarding would be equivalent to The
boarding our greenbacks of to-day.
In such a case The Government could re-
lieve the market by extra issues, even to
two Thousand millions or more, upon which
a light tax might be imposed to insure their
return when qIietude is restored. All this
! have before explained, and now repeat.
that the plan in question is most perfect in
all the particulars mentioned and can be
controlled by no clique at the expense Of
the people.
To the comparisons made between my
currency plan and that proposed BY Messrs.
Stanford and May bell, / answer, that The
latter named gentlemen have not proposed
any new form of currency, they merely
propose TO loan greenbscks to landholders
and charge an interest for the loan.
1.-THE Currency ofSlhe Future" could be
loaned TO real estate owners precisely as
Senator Stanford suggests. A proposition
to loan money is not currency, properly
speaking, it is a use made of a currency
already in existence. Mr., Stanford would
print more greenbacks and loan them out at
interest, he could do precisely the same
thing with the currency / propose.
The trouble with greenbacks that are not
convertible into gold coin is that they are
not fixed in value when based for inter-
national trade, but fuciuate with orr coun-
try's credit. Not SO, however. the currency
/ propose, which is always maintained at
par in foreign exchanges by the adjustable
rate of interest paid for its bonds and
changed periodically by our Treasurer.
The quantity of the total issue may he
$50 per head or even a greater sum, upon
this point more may be said later on, GER
tainly no limit may be imposed that will
permit any syndicate to corner the money
market.
To the charge thai the Treasurer might
abuse his power in regulating the interest
upon these convertible bonds, and aid
money borders, the answer is, his CONDUCTS
SO public in case Of wrong doing his i'm
parchment would Instantly result, he could
do no harm if he tried, without the public's
knowledge, and 10 the fear of that, he could
not criminally act against them and retain
office. Congress would rise up in such
case, at the instigation of1he merchants and
the people, aud quickly put competent
man in Office. 1t Is the publicity ofconduci
that ensures perfectretention ofthe par
value of these convertible bonds that
necessities proper conduct by the Treas
urer. The Governments declaration to
maintain the bonds at par BY means Of
whatever rate Of interest is necessary for
the purpose, compels the Government to
keep its word regardless Of any one Treas
urer's operations. There are honorable
men enough to hold such an offcs.
JOHN M. BACHELOR.
II East 13lst st.,
New Ynrk Civ.