Year: 1874

purchase bonds with greenbacks at par and


60 to banking again. Ifthere are no banks


organized under this bill Of course there


win be no greenbacn tetired Again, The
money received for the FIVE percent ten
year bonds provided for In this bill 10 to be
used for the purpose Of purchasing and re-
firing the six-per-cent. bonds. which are
payable, principal and interest ~ coin.
These bonds are held abroad and the
com for principal interest and exchange
or transportation would go abroad
also. OF course this would add to the
scarcity of coin here. The flrst effect Of
the passage of this bill will be. then, vio-
lent contraction resulting from the with
drawal of the reserves from New York and
other money centres, and locking them up
as dead capital in the vaults Of the country
banks. The second will be an additional
contraction TO the amount Of the five per
cent. redemption fund to be deposited in the
Treasury. The third will be general dis
couragement Of the organization of national
banks on account of these curtailments Of
means Of profit. If this violent transfor
nation of reserves which the law requires
to take place within ninety days does not
break all the merchants, and ultimately, by
the reactionary influences, all the bankers,
and they are enabled to struggle along to
the end of 1870, we can look for the com
mencement of an era of imitation which
will gladden. the heart of the widest spec
ulator. Unlimited issues may then be
made upon untaxed bonds obtained in ex-
change for greenbacks at par. And no
redemption in coin provided for except at
the option of the Secretary Of the Treasury.


With all Difference and respect we submit
that this currency bill promises nothing so
good as we have at present Why not at
once do what will alone restore confidence
in the monetary system of the country.
Provide for the accumulation of gold in the
Treasury for the redemption of greenbacks
instead of compelling the national banks to
lock 1t up in their vaults as dead capital.
One hundred millions accumulation will
suffice. It can be acquired before July,
1876 Enact also that simultaneously with
this redemption of greenbacks in coin, the
limit shall be taken from the issues Of ma
tional banks. Compel them to redeem
their issues at home or in New York or
some other money centre in lawful money,
which will, of course, mean legal tenders
as long as those notes remain legal tender,
and you will have a money system which
will regulate and control itself through its
clearance houses and redemption banks at
the money centres.


Ifmore currency is wanted Immediately
in any quarter, let it be obtained by redis-
tribution. There are plenty of Eastern
banks that will gladly surrender half their
circulation, as 1t is of no profit to them.
They can get just as heavy deposits with
half their present volume, and it is only
upon their deposits that they make any
money.


The Bank of England, with $100. o00. 600
of coin as basis, redeems and controls not
only all lis own circulation, but all the
credits, deposits, and circulation of all the
joint stock banks, private bankers, and com
mercial and mercantile men of Great Brit
ain, and also commands the exchanges of
the world Shall it be said that with the
same amount we cannot redeem $500, 000.-
900 of greenbacks, no twenty millions Of
which can be locked up long enough for
presentation without creating disastrous
money panic? The idea is preposterous-
we had almost said nonsensical.