New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-02-14
A BOSTON PLAN.
its creed

The financial plan of the Merchants Assocla-
tion of Boston embraces scme fatal features with
others that have merit The first proposal that
the Secretary Of the Treasury should redeem the
silver dollars in gold nj the request of any holder
when presented in multiplcs of SO. has the merit
that il recognizes the essentially representative
ar subsidiary character Of the silver in crcula
lion. and establishes one and the same value for
MI the kinds OF money the Government puts out
for If is assumed that the same rule If adopted at
all would pcrforcc be extended to the silver GER
t,ticaics since anybody could demand silver for
his certificates and then gold for his silver. But
the association does not seem to have given any
thought 10 the practical question whether 50
l,ra. IN amount Of silver certificates rs Is now
in circulation could be- maintained In use with
fire.. redemption Of them in gold or whether the
Government could keep on hand gold reserve
sufficiently large for that purpose.
The second proposal-that the fiscal and the
redemption functions Of the Treasury should be
vigorously separated 80 that on" department
should receive III the revenues and dcfray all
the expenses II Government, while the other
should have exclusive charge If the redemption
of lrcaltcnlcr notes and silyer-is exactly as II
4 biz merchant Of Boston should solcmnly pro
hibt himself from giving his own notes 70 any
BODY except for gold deposited with him for SAFE
kccnirg He would probably consider himself
iuc,rnp,t mt 10 do business II lie could not ma
better use for his credit than 70 make free
warehouse Il himself for the storage or other
peoples gold AZ his own cost and risk 1t would
be nonsense to put out notes M AL under such
conditions II the people want them. and abSo-
lutrly need them in their business. and III" Gov
eminent actually saves S2OOooOOO year by
using Is lcgal-tcndor notes Instead or bonds,
which + the cxact fact, then what sense Is there
IN prohibiting the use of the public credit when
thu revenue is temporarily short or the people
temporarily need more paper circulation!
Cl>tlrnn rules II this kind would more nau-
rally b. proposed by such college professors or
closet ,h.pri,', rs evolve monetary systems out
II their inner consciousness. without regard To
the practical workings of business. than by
Boston association ~ merchants The proposed
rule that S2uolOoO.OoO must pcrpctually be kept
On hand for redemption Of notes. no matter how
many bonds might be sold to keep up that re-
serve reminds one OF the fine old rule Of the
Bank OF England. which Mr.. Walter Bagchot
So crnshinsly rdculcd that the specie reserve
must be held intact and never used. No matter
>
know what was the use Of having reserve
II 4, was never Ia be- used. and how on earth 1t
could ever be used In any emergency except by
paying II out
The third proposition that II Government ever
fails 70 redeem its LEGAL tender silver in gold
on demand all Government notes and silver
should suddenly cease to be LEGAL tender or re-
cciyalle for taxes and debts until redemption
shnuld be rcstorcd-is really n strange PROPOSE
tlnn for a body Of merchants who doubtless
hailed with joy barely II month ago decision
of The Boston banks 10 issue clearing house GER
tifcatcs Of their own To take the place of money
which some of the banks were not able AT the
moment to pay Strange indeed to find prac-
teal men proposing that any sudden panic, any
conspiracy Of foreign or domestic spectators 10
cmbarrass the Government. any rumor OF foreign
trnubl. or actual foreign war should be made
to throw the whole currency OF the Nation INTO
confusion and leave the people without any
money for payment OF their debts. 1t Is. perhaps,
obvious enough to any practical man that such
a rule If adojtc1. would instantly be set aside
by the lawmaking power OF the Government IN
case ANYTHING ever happened to give 1t effect.
Hut II So what Is the sense Of adopting such a