Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-07-22
81, 154,6l3.551
To Extend the Greenback ISIS


To Extend the Greenback Issue.
''To extend the present issue of greenbacks to
that amount increasing the reserve only rel
atiyely. might not be safe in so great an ex-
pansion. But to issue $50 of notes upon 100 of
metallic reserve. at the same time pledging the
faith of the nation for the redemption OF the
notes on demand. through the sale of bonds as
may become necessary to provide coin for that
purpose. would be conservative policy. as
free from objection as any likely TO be pre-
sented. The metallic reserve should consist of
one-half of gold coin. one-half of silver bullion
at the market value when purchased, and the
notes should be made redeemable IN gold at
present standard or its equivalent in silver
bullion, under such regulations as the treasury
may ind necessary. The reserve required for
the notes in question under above conditions
would be $40 900. 900. one-half of each metal
There have been purchased by the treasury
$50 300 176 ounces of silver for coinage OF silver
dollars and issues of certificates, costing the
government 1855, 1872, 637. To sell this bullion
at present price-72 cents per fine ounce
would result in loss Of about S109. 500. 900.
Tie silver can. however, be utilized as a re-
serve. together with gold and notes issued
thereon. and an additional amount of one-half
more Of such notes credit. The silver
based upon its cost for such a reserve is already
provided for and an excess of $4,000, 900.
There is of gold in the treasury Sl9S. 000. 600,
| making the reserve Of gold required short
SlSI .OOOO As on the whole. however, there
are to be notes 1885,. DOC. 900 In excess, the gold
/ needed can be purchased with the notes issued
10 the necessary amount. or the excess of silver
can be converted into gold to its extent BY
the time the change could be effected the gold
reserve could be obtained without difficulty or
disturbance.
The Effect of the Plan.
linus, with no expense except the cost Of
preparing and issuing the new notes and ex-
changing them for old ones, the government
can retire all outstanding issues and substitute in
their place one form of notes; full IgI
tender. redeemable. say. when presented in sums
OF $1,000, oue-haif in gold CON- one-half in sill
YER at Its current market value OF in either
metal, at the discretion OF the Secretary of the
Treasury. The amount of the issues should be
fixed by Congress from time to time as deemed
necessary. At present tine limit as suggested
would be Sl.l54.6l3. j51. of which one-third
about 1854. 600. 600, would be in excess OF the
reserve, and with no expense to the govern
ment: equivalent, in iact to that amount with
out interest, which at per cent would be worth
S1l 600. 900 per annum TO the government a
saving which in a few years would reimburse
the treasury for any loss from silver pur-
chases that il NAV have sustained and this
profit would be shared by every citizen of the
United States. To meet every possible con-
tingency the Secretary of the Treasury should
have power to sell bonds and use the proceeds
in redemption OF the notes after the reserve
should be exhausted a very remote con-
| tingency. In this way the parity OF value