Year: 1869

Of the existing circulation or the compulsory re-
sumption OF specie payments by the national
Treasury and banks in obedience TO legislative en-
actlnent. All such measures being entirely
arbitrary in their character do not recognize those
laws OF supply and demand which SHOULD always
be carefully regarded In every provision relating to
the currency, commerce and industry OF the country
Az present there are two kinds OF currency IN use
notes known as greenbacks. The circulation Of
both OF these is under control OF Congress, which
can compel the withdrawal OF either or both pro
rata, as II shall deem most advantageous to the
public interests; but In either case The contraction
effected would be compulsory one, made by force
mands OF trade the needs Of the currency and
quite apparent from what we have already seen it s
mott accordance with the popular WALL and 1t seems
desirable therefore, that some plan, which, while 1t
shall be certain to secure the intended obects-the
not be liable to those objections which have been
urged against every measure hitherto proposed Tor
tnaa IN purpose; some plan more IN harmony with pub
can be done venture TO present the following pro-
pOsiGons:-


First.-That Congress authorize the issue OF COM
pound interest notes. precisely like those with which
the people are already familiar to an extent equal
70 It's Treasury notes. say $3.50 GOO Ooo or SO many
them be OF the denomination Of ve ten, twenty and
fifty dollars, with suitable proportion OF 500 and


Sec0nd.-Let these notes be dated on the first day
OF each successive month, commencing with the lst
Gay o. ,o J9y % next Nv when so should Be made
furnished.


TntY'd-Ict these notes be convertible into ten
forty bonds, at five per cent like those heretofore
before.


F0urth-Let Congress imperatlvely require that
these notes. ana no other, be paid out for all dis
burscments Of the Treasury except those payable in
OF the government, and II the whole monthly issues
are not thus put IN circulation let the Secretary OF
dne Treasury DC IL required & to exchange M them for
since they must be much preferred 20 the latter.


RESULTS.


Such is the general outline OF the plan here pro-
posed and the following results may be confidently


First.-The notes peing widely difrused throughout
the entire nation VIII come into the hands OF all
classes and eventually supersede the present green
backs, and consequently II persons anywhere are
able and disposed TO hoard them or lay them by as
investment they will have ABUNDANT opportunity to
do so, and from what we have seen In relation to
1ne On interest est notes issued we
place. and that finally the whole mass viii be con-
verted into ten-forty bonds.


SecOnd.-Under this plan there can be no contrac-
ton OF the currency that Is not wholly voluntary
the part OF the people; for SO far as it takes place 1t
VIII be done, not by the arbitrary act Of the govern
ment or banks, or by the speculative classes but
entirely by the individual holders OF the notes.


Third Is evident that since those who buy the
they will be certain to put them into circulation
again II the demand for money is such that they
Keeping them on hand. This will. Of course. pre-.
vent the possibility Of any extrayagant security Of
money, or nigh rate or interest," since whenever the
rate IL much above six per cent the compound notes
Will be brought into circulation and all danger Of
panic in the money market win be erectually pre-
vented.


Fo,1fh.-Again IL may be observed that these
notes will form an elastic currency In the best use OF
that term; and although elasticity is the worst
and most undesirable quality In currency de-
signed for permanent use, yet, as an alternative
during the transition from vastly ex-
panded and wholly irredeemable currency to
one equivalent to gold. such a quality VIII at least
prevent the danger OF distress or loss which many
persons fear would attend the return OF specie pay.
OF the circulating medium At present the currency
OF the country, consisting wholly OF credit mere
promises 10 pay at some future and Indefinite PERIOD
remains a fixed quantity, without any reference to
the wants OF trade, since 1t cannot like SPECIE be
exported and imported according 70 the varying de-
pound interest notes, this popularity will no longer
exist because both centripetal and centrifugal
force will be introduced into the currency
q centripeta force, because there will be GER
tain and constant tendency to boarding, as the
ability OF individuals will permit and centrifugal
force because the events OF trade, the demand for
money, will be certain to draw out those notes when
ever aud TO such an extent as they shall be really
needed This desideratum, 80 earnestly contended
for bv many persons will lie certainly secured.


FOrh.-But another point worthy OF special notice
is the very gradual manner in which the contraction
will be effected. At first only ten millions OF the
compounds will be issued, and these viii be dis.
tributed broadcast throughout the nation. ,Gradu-
ally, they fall into the hands OF those who do not
need them for immediate use, they will be boarded
Another and stil another monthly instament will
be sent out received and treated IN the same way
from use until the end OF two years and then only
at the rate Of ten millions per month; and It viii be
can be funded, while the entire three hundred and
sixty millions can and, II needed, VIII be kept In
~ the end q ss
contracte force VIII be amply sufncient
under the plan here proposed to cause
these notes soon after they are put in circulation;
but AZ they are thus withdrawn prices Will fall cor
os % sss WIN Ss
fore, although the currency IL constantly diminishing
the demand for It viii decrease In at least equal
fore ihe contraction commenced or sucn result
no one Acquainted with the laws Of money ana
finance Hoa ca0 nsys sss,!Ss1 ne lfsst


II It DO asked how the resumption OF specie pay.
ments Will BE- secured when the compound notes
nave been finally funded, 1t may be replied that when
circulation than that issued BY the national banks,
amounting 70 }300,C00,00 which win be at least
equal 70 tde natural amount required ny the business
or Yuite on par with gold but 10 assure that .
WIN be 10, Congress may provide that the banks
coupons until they resume payment and, II needful,
the banks may be prohibited from holding the com,


n9ss Sss S part Of mem Se snN, %
supply themselves with the necessary amount OF
specie. u VIII, however, be found practically that
~ the volume OF the currency ia brought near 10 It's
natural limit much OF the gold forced out OF the
country during the expansion viii be returned (as
was the case IN 1S57-sl while all our own product
will be retained at home, ami thus the banks, with
out en0rt or expense will accumulate oil the specie
their wants require.


ECONOMY OF THE MEASURE.


II u be objected 10 the foregoing plsn that II
obiiges the government TO pay interest on Its own
notes may he replied that such result Is unavoid-
able. whenever the 0reenpacks are funded ms IN
some form they must ultimately be, the government
,as prom TO pay Its notes, and as II n not able
10 discharge them with specie II IL bound IN common
equity nnd honesty TO pay interest upon them until
~ can. Thc transitional plan now proposed by
which,, through the issue Of compound interest
notes. the iloa.ng promises OF the Treasury wll~be
eventually funucd while one that In perfectly hon
orable VIII bc found, 1t is believed, highly satsisc-
tory TO the public. Certainly VIII be an econont-
col arrangemenf because the government, so far
from losing interest, VIII gain largely by the opera
uvn, since y must result IN rapid restoration OF
the national credit to thar point at which the whole
pubic uebt may be consolidated into one uniform
stock OF not over four aud onehalf per cent tbr
the want OF well settled and judicious policy for
resuming specie payment tho nation n now losing
more than u gains ~ the annual interest upon some
$500 900 OF IT'S circulating notes. Unless the coun
try IL 10 sucr Tor an indefinite period all the disgrace