The comet. (Johnson City, Tenn.) 1884-1916, 1893-08-10
cause delay, would increase the curren,
ey only some $17OOO,OOO.

cause delay, would increase the curren-
cy only some $17000,000.
The bill I send you, allowing all
holders OF United States bonds to turn
them into money, for such times as
they may be willing to forge interest,
offers simple, safe, immediate and
sufficient remedy for the abnormal
scarcity OF money. Beyond the bonds
deposited to secure the national bank
circulation, there are in existence $500.
100000 government bonds, largely held
by financial institutions For instance,
1.-THE Society for Savings of our own
city, the largest and strongest financial
institution in in Ohio, holds to-day
100000 OF theee bonds. Yet though
undoubted security, these bonds can
not atpresent be converted into money
with which to meet any demand of its
depositors, without loss to the society
and increase in the general financial
pressure. 1t could only sell them at
present at great sacrifice OF their
normal value and could only borrw on
them at rate much exceeding what
they yield. Either course would in
crease the general demand for money
willie actually decreasing the general
supply, for the fact that such bank
was sacrificing its securities to get
money would increase the feeling OF
panic, which grows by what it feels
on.
Now, this is precisely the situation
Of similar institutions not onlythrough'
out our city aud state, but over the
whole Union. So much is, human &C
ton governed by imagination so strong
is the impulse to do whatever we see
our neighbors doing, or even thini
that they are about to do, that it is en-
tirely possible, with an abundance o
money in the country to meet all usua
demands, for financial stringency t.
grow to point that would reduce u
almost to q state of barter, all but stol
production and beggar all but tn
very rich.
The possibility ofat once converting
United States bonds into money woul,
entirely do away with such danger an,
at once end the financial stringency
Tt is not so much the amount tina
would be converted that would tell
but the amount that could be convert
ed, il there was need.
The government would run no risk
1t would merely exchange interes
bearing obligations into non-interes
bearing obligations, with saving, 70
the time, of interest.
There wonld be no loss OF the sellin
value of bonds to the holders and II
permanent expansion of the currency
for as soon as money, ceasing to b
boarded, became normally abundar
again, borrowing rates would fall, til
price Of bonds would rise, and it woul
be to the interest of the holders of tn
deposited bonds to reclaim them an
return again to the treasury themone
issued on them.
I introduced into the last congress
bill intended to add to our currenc
system the elastic feature of an intel
convertibility of bonds and treasul
notes. The bill I now propose puts Il
same principe in a way better adaptt
to meet the exigency that has now 9
isen aid to avoid matters over whil
there might be dispute. Believer
that it offers simple, prompt and u
Objectionable remedy for most pres
ing evils, and desiring its considerable
by my constituents and the genel
public, thus lay it before you III a
vance of presentation.
Yours very truly,
Tom L. JOHNSON.
Fort Hamilton, N. Y. Aug. l, 1897.
s11o