Year: 1869

seaboard cities the average interest is Twelve
per cent. while in The Southern ,.tlcs aaa
some other sections IL rises TO over twenty per
rency 1t is proposed. first, that the government
shall withdraw the present legal tenders,
and, as they are withdrawn, to substitute for
them the Certificates of value" as a circulat-
ing medium and lawful money. These are to be
based on taxes, which are estimated at about
three hundred and fifty millions, the amo unit
nearly OF the outstanding legal tender notes.
The certificates of value" are to be received
for all taxes, whether collected from internal
revenue or external commerce, and, therefore,
will be redeemed In that way every year. In
fact there will be but one kind of lawful
money. General Butler thinks it strange that
the government ever should have established
two kinds legal tenders and specie, in which
to do its own business, and stranger still to
enact at the same time one only for the people.
He regards this anomaly as the principal cause
of keeping the currency deprecated.


He proposes next to take from the national
banks all power to issue notes to circulate as
money. leaving them banks of deposit, loans
and discounts. Of course in using the gov
ernment certificates as circulation they would
be subject to no tax on it. Then, az it is evil
dent that three hundred and fifty millions of
certificates Of value would not be suf-
ficient amount Of currency for the business
purposes of the country, he proposes to throw
g
obtaining money from the government to every
man or association of men who can furnish the
same security the banks do now for the money
so received-that is, any one owning govern
ment six per cent bonds may go to any public
depository in the United States, and, lodging
them there as security, shall receive ''certif-
Gates of value to the amount Of ninety per
cent of. the par thereof, to be at his pleasure
reconverted into his bonds at any time after
thirty days, he paying to the Treasurer inte-
rest for the money received at the rate Of three
dollars sixty-ive cents per annum. This is
his proposition in brief for cheap and uni
form currency.


General Butler argues that this would not





might appear to many to be the result ''for no
one will pledge this species of capital in gov
bonds for three sixty-h per cent, on
ninety per cent of its value, unless that money
could be safely and profitably invested as pro-
ductive capital, or, in other words, unless tn
business needs Of the country actually re-
quired it," The rate Of interest, he holds,
would act as certain regulator of or govern
ing power over the amount Of the circulating
medium. 1t will be seen, of course, that this
involves General Buffers other proposition of
an elastic currency that Is to say, the amount
in circulation would be more or less, according
to the demands Of business and the rate of in
terest. He maintains that this would be
stable currency neyertheless-stable in its
value and relative to other values, though 1t
may change in quantity at times or in certain
localities just as the currents of trade change
the volume now in certain parts of the conn
try at different seasons OF the year to accom-
modate the demands of business.


Referring to the resumption theorists and
their impracticable projects, he shows some of
his characteristic satire. He remarks -
zone says the way to resume specie payments
is to resume. Suppose the physician should
say to the sick man, the way not to be sick is
to be well, might not the patient ask his doc
tor, how am to get well? So, afew years ago,
one may remember that the way proposed for
the Union armies to get to Richmond was On
to Richmond, and trust may not be con-
sdered malicious in calling to mind that our
armies found some difficulties in carrying out
that suggestion, which resulted in such dis
aster that 1t was to be hoped those who blindly
advocated It would never again dogmatize
upon any subject the difficulties of which they
opposed also to what he terms the other Sim
possible schemes for forcing specie pay
ments by slower process, and genteely cuts
up Mr.. Morton's plan. lie concludes that If
return to specie values be the only remedy
for our financial evils, then there is but one
plan by which 1t can be accomplished-"We
must wait and grow to 1t.


After taking very interesting historical re-
view Of the commercial and financial history Of
this and other countries, showing the frequent
fluctuations in value, suspensions Of specie
payments, financial crises every few years,
general bankruptcies and ruin and widespread
distress caused by these, he asks, is II desira-
BILE for this country voluntarily to return to the
old system after we are partially emancipated
from it? Altogether, General Butler has
taken bold step in advance Of the views Of
fnanciers and many Of his colleagues in Con-
gress. His speech win create Autter among
the bondholders, national banks and capital
lists, and win open the door for great discus
sion. However much bis views may be ques-
toned or opposed by the old school financiers
and political economists, there is no doubt he
has struck the chord Of popular sentiment, and
that he will be recognized as the leader In this