Year: 1868

thousand millions of dollars in currency. for one
thousand millions in currency values more than they
ever received Resumption will never be brought
about at such an injustice to the debtor class ~
would only drive them into universal hahNrup,oy
and suspension Of industry and production "hI'h
would be as disastrous to their creditors as to them
selves To strain toward it invites ay-laws, insoi-
vency, and reputation. 1t is wholly UNJUST Tor the
creditor class to collect 30 per cent more yaue than
they gave TO the debtor class. under pretcnse that
this - necessary 10 restore the country to specie pay
ncnts. The country can come to specie payments
eoualv well without any change Of the actual values
of any kind of debts OF property now existing Nor
will il repair any degree the financial wrong done
10 the creditor class in 1850 to 1856 in the enactment
of the LegaTender act and the subsequent deprecia
ton of our currency, which enabled many OF their
debtors to pay debts incurred i'll gold III currency
worth only from 50 down to 40 cents per dollar.
Most of that class of debts having been paid, the
wrong has been done, and is now incapable of REM
edy 1t was done under stress of public necessity.
The class who suffered in the collection of their
generally prospered far in the stimulus given to
business by an abundant currency and in the rise in
their real estate and fixed capital Never has any
great financial change caused few failures as the
LegalTenderao and the expansion and depreciation
III our currency.


But the class to whom debts were due ten years ago
cannot be made good for their then losses by the over
payment of the class to whom debtsare due now The
same men who suffered then would be likely to be
among the sufferers now as to be among those
ngly benefited. Those who were in debt then. and
paid their debts through the LegalTende act at so
cents on the dollar would be quite likely through
that very means to be the creditors to-day. who
would under the system of resumption by contrac-
tion of the volume of the currency only collect 100
cents per dollar in gold on debts incurred in cur
reucy worth only from so cents to % cents. The
truer wisdom will recognize the real identity of in
terest between the debtor and creditor classes rs
ovcrbearng the apparent conflict Of interest. The
creditor class itself would in attempting to collect
its debts in a currency worth so per cent more than
thatln which they were incurred, not only make war
on the general industry of the country on which their
investments depend for their security and profits,
but they would ultimately have to accept from
Bankruptcy Court small average percentage of their
original debt; whereas by its adjustment on the
gold basis above set FORTH they get its actual value
without deduction


As, without wronging. injuring, or affecting any
class Of business men, it will afford them all the
benefits of resumption. e. will restore gold to crcu-
laton as money will enable and compel the Govern
ment the banks. and individuals, to withdraw all
rredeemable paper and issue redeemable en- rency in
its stead and will give us once more fixed specie
standard Will facilitate a return to banking sys-
tenn at once free and well secured we believe all par
ties. except those who desire to oveueach their
fellow men, have only to understand it to assent
10 it.


Sccondlp: This plan provides mode whereby from
900 TO 81 600 of National Bonds may be
made useful 10 the business OF the country by being
made the Basis of Banking-i. e., the security for
notes-at the same time that all our bank notes shall
be made more secure than they have ever been.
Bankers will not feel it burden TO be compelled to
buv and hold 80 or 10 per cent more bonds than
since they pay a fair interest especially If 1t be
coupled with the privilege, now denied them OF
starting new banks wherever they choose Nor VIII
bankers take currency for which they have depos-
tied ample security with the Government bonds
sufficient TO redeem it III gold, and loan II III dis-
counting commercial paper except IN the most souhd
and eautious manner. Therefore, Free Banking, on
the terms proposed cannot lead to InuaiIon' ii
il did the bankers alone would lose, as the people
and the Government would be secured by their
deposits of bonds enough TO redeem their currency
even in gold. Such is the undue scarcity Of cur
rency however, in the Western and Southern States
(which have only $56,000.OOO currency, under our
present banking system, to two-thrds OF our total
popnlation or 81 80 per head while Pennsylvania
and the States north aud east of il have S242O0OO
of currency to onehrd Of the population, or so per
head) that bankers viii be entirely willing TO puS


chase from s3OOOOO,OOO to SCO00OOOOO of National
Bonds as the basis of new banks under the National
svstem and 10 strengthen the banks now existing
| by an increase Of their deposits Of bonds TO the
amount required by Section 4- C., so that the value
in gold of the bonds deposited shall always exceed
the nominal amount Tor par of the currency issued
This business demand-gradually, naturally, but
rapidly creatcd-for SjOOOOOOOO Of new bonds,
will bring the price of our bonds IN the
market from 7s in gold, ND TO 90 or 81.
1t is well-settled fact in our financial
system that the greenbacks though not fundable
into the bonds, yet being issued by and dependent
for their redemption upon the same Government
which issues the bonds, do bear certain invariabe
and fixed relative value 10 the bonds. and indeed
their actual value is determined by that Of the bonds
| When our bonds were worth only 40, they were at
from to 1c-sr cent above par in'greenbacks. They
are the same TO day. The two differ in value only in
the fact that one bears n coin interest. The other
bears no interest This difference is worth from to
l2 per cent according to the amount OF the interest
and the nearness Of the redemption of the principal.
The law of their level may be illustrated by cOmpari-
SON.


{4e1Omoooo} sIooo0o2 e2N0Nooool


Gold Gold Fl l. u"