Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-08-26
ADVERTISING RATES
gALF INCH OR LESS
FRIDAY AUGUST %, 1898.
Tho GrccIy Proposition.

We have heretofore stated that MT.
JOHNSON, Of Ohio, was in favor OF resort
NO TO method of increasing the vol.
me Of currency which was strongly and
rsistently advocated by HORACE GREE
~ many years ago. This method is as
ulows II proposes that any holder OF
the 500, 900, 900 of United States bonds
now outstanding may take these bonds
and deposit them in tho treasury of the
United States and demand for them
either United States notes or treasury
notes (silyer certifcates) issued under
the act of July, 1890, and thus convert
these interest bearing bonds into de-
mand liability.
Tshe hrst objection that we would raise
to this scheme is that, as we have here
tofore argued, just rs soon as the spec
ulators in currency find that United
States bonds could be converted at will
into currency, the spectators aforesaid,
instead OF going TO the treasury to get
preepbacks for their bonds, and thus
stop the interest accruing upon said
bonds. would use the bonds themselves
as currency, and thereby save the inter
est upon them. There may be some
method of preventing such use OF
tho bonds but if there Is any such
method possible and practicable we
have seen no statement as to how 1t
is proposed that this method shall oper-
ate.
Mr. SHERMAN, always posted on cur
rency questions, mnde speech II the
United States Senate last week, i'll which
he showed up Mr.. JoHNsoS's or Mr..
GREELEY's scheme in light which will
probably cause that scheme 10 he LAID
aside for the present. Suppose, sand
Mr SHERMAN, that there were burden
of $500, ,0Jj or 500. 900, 900 or even
500. 900 thrown upon the trcasurJ
OF the United states at this time, when
currency Is scarce, it would shake the
foundations OF the nations credit.
WHY? Because if b1nihoidcrs should
demand at this time treasury notes or
greenbacks to the amount even OF
one hundred millions Of dollars,
such ali amount OF treasury
notes or greenhacks couldnot be spared,
and the government would stand
branded as unable to pay It's debts even
i'll paper currency. The birds OF prey
would light upon the body polite, and
dire disaster would come upon the
country. Iu order to prevent these
destructive and deplorable results the
government would have to prepare for
"A new issue of greenhackS, large enough
to meet all the demands which such a
scheme would lnpo upon 1t anl totally
independent and distinct from the green
backs which now form SO large a portion
OF the circulation. Il is possible the
scheme might in some way BE- made
tolerable, but as at present advised we
cannot commend it to public favor.
In the same speech hercinbetore men
toned Mr. SgGBNAG advocated the
VOORHEES, bill for increasing the volume
of currency, and answered the objection
that Congress would, if it passed that
bill, give to the banks the privilege of
increasing their circulation whilst deny
ing that privilege to the people or the
sogernment itself. But" said Mr..
HERMAN. 1--WE propose to give it to the
Suks under very different conditions.
hen the banks exercise this privilege
y deposit their bonds in the United
tltes treasury, and get, not govern
eient obligations, but their own notes.
The bonds are in the treasury to keep
those notes at par. The government
has nothing to do with the matter, except
to give to the banks the authority to in
crease the volume of the currency in the
manner proposed.