The midland journal. (Rising Sun, Md.) 1885-1947, 1890-12-05

Anthu 90 having auVptSu tueuttCdAJ tuS
same plan that Mr.. Window now proposes.
This Bank, almost as we'll known in lis day
as the Bank of Venice, issued paper cur
rency based upon fixed rate Of interest
bearing bond I; this occurred 10 the 18th or
18th century, and for many years the cur
rency of this Bank was more highly valued
than gold coin and it did the exchange
business Of nation. But finally the pre-
MUM upon this Bank 3 currency proved so
great hinderance to business that the Bank
decided 10 abolish the interest entirely. It
did so because the gold par standard for
exchanging merchandise was at about 20
per cent discount, and fuctuated above and
below that sum, greatly disturbing values
which were founded upon the country 3
currency. 1t was found that for business
purposes currency at premium was as
bad in its way as currency alta discount,
as those merchants who used ii at higher
rates than gold for buying goods were at a
disadvantage with those using gold at the
par rate. Yet merchants desired this Banks
currency for the interest it bore, consequent
ly they boarded it and thus it was kept out
of circulation. This is precisely what would
probably happen to Mr.. WINDOWS plan,
people would hoard ii for the interest, and
commerce would be without money, unless
Mr.. Window proposes to issue unlimited
quantities.
| The Banks referred to are not the only
instances in history where interest has been
allowed upon the banks currency, there
are several other celebrated cases, but the
experience ofthem all was precisely the
same as that related Of the Bank in the
north Of Europe, aud all Of them were
sooner or later obliged to discard the inter-
est as 1t hindered rather than promoted
commerce. Yet not surprising to relate, in
each instance, long years afterwards, for
one cause or another-ge generally dishonesty
: these non-interest bearing currencies fell
below par as did our greenbacks during the
war until by failure or legislation they were
DESTROYED.
With my plan, however, all these troubles
are obviated when our greenbacks are
made convertible into factuatiag interest
bearing bond, instead Of the ffaed interest
bearing bond Mr.. Window proposes, the
whole issue is solved and our currency
troubles will be forever ended, SO long as
the quantity issued is sufficient to meet the
requirements Of the country. This quantity
is easily regulated by noting the daily
auction value of money on the street.
For this moment, the currency propose
which is named 1.-THE Currency Of the
Future'-when worth anything above par.
the Treasurer lowers the rate of interest
upon the bonds into which it is convertible,
and keeps on lowering it until par is reach
ed and when the currency is below par, he
raises the interest. By this process Of
changing the interest in accord with our
country's fuctuating credit, the sscurrency
of the future" is made perfect in all partic
MARS, and can be used for International pur-
poses precisely as gold is used to-day
without The loss and cost associated with
gold. The currency of the future" would
not be boarded, as the hnarder conld not
count upon paying interest when COM
pared with other Investments, and if all
tempted it would cause premium upon its
bonds and this would cause the Treasurer TO
lower the interest rste. Thus this plan
would practically be seliregulating with no
drawbacks of any kind.