Year: 1873

4


In taking general view of the condition
and prospect of the country, financially and
commercially, one of the most important ele-
ments to be considered is the currency. While
the demand and supply of foreign trade regu-
late exchange between this country and other
countries our currency is the life-blood that
regulates everything at home. Among the
various, and, we might say, numerous
measures proposed to cure existing evils and
to promote the welfare of the country through
the agency of the currency is the reported
scheme of the United States Treasurer Ac-
cording to the dispatches from Washington
Mr.. Spinner will recommend, in the report he
is preparing for Congress, most important
change in our system of currency. The plan
is to issue series of currency bonds, convert
ible into greenbacks and back again into the
same currency, at the option of the holder.
| The idea is evidently, to have an elas-
tic currency, so that when money is
scarce the holders of these proposed
new bonds can take them to the
tenders for them, and when money is abun-
dant can take up bonds again. To make this
practicable the bonds Of course must bear in
terest readily calculated. We suppose there
fore, the proposition will be to make the bonds
three-sixty-fves, or bearing a cent day in
terest on every hundred dollars. With such
convertible and recoverable bonds, if made
easy to obtain in every section Of the country,
the interest on money would never be high
and must be pretty uniform throughout the
Republic. Usury laws might be dispensed
with to great extent when money could be
SO easily obtained and when the rate of in
terest generally must be three-sixty-ive per
cent. Such comprehensive measure would
make revolution in the monetary affairs of
the country. How tar the Treasurer will be
acting upon his own Judgment or with or
without the approval of the administration or
Secretary of the Treasury, in making this rec
ommendation, we are unable to say. If, with
the approval of the administration, we are
perhaps, on the eve of most important
change, at all events such proposition
from the Treasurer will have weight and
lead to much discussion.


We are not informed what amount of con-
vertible bonds would be proposed for issue, or
what expansion of the currency we might ex-
pect, but shall look forward with interest to
the Treasurers exposition of his scheme. One
thing is certain. the proposition will meet
with determined opposition from the bankers,
money lenders and spectators who now lock
up money in order to make large profits, and
who get, according to the condition of the
market, from six to fifty per cent per annum
for their money. They will endeavor to raise
alarm about imitation, and talk loudly of specie
payments, which they have no wish to see-at
least they do not want specie payments unless
that would make money scarce and dear, and
so increase their profits. We can offer no
| opinion OF the Treasurer's plan till we see it
developed but anything that will bring down
the rate OF interest, equalize it throughout the
country and keep the money market steady
must prove beneficial to the commercial,
trading and farming interests, and lead
to revival Of industry and business gen.
orally. 1t is a curious anomaly of our
monetary system that, while the national
banks and their currency are pretty equally
distributed throughout the country, in pro-
portion to the commercial, manufacturing and
agricultural interests and the supposed relative
necessity and importance of these interest on
money is much higher in one place than in
another at the same time. In fact, when
money sometimes in the cities of the Atlantic
seaboard is worth only six or seven per cent,
it is worth in the West or South ten, twelve or
more per cent. The tendency of money or
currency is always to the commercial centres,
and it returns sluggishly or reluctantly to the
interior. It can be used more proftably in
stock and gold speculations in the cities than
in promoting industry in the country. No
doubt convertible currency, as proposed by
the Treasurer, would go far to remove this in
equality and make money easier and cheaper
throughout the interior.


Another important proposition, calculated
to afford relief and to approximate specie pay
ments, is that of Secretary Richardson, as
shown in our Washington dispatches to-day.
He has decided, considering the fall Of the
gold premium and the difference between the
price Of gold and silver, to place currency on
silver basis as far as the government has the
power to do so. 1t is said he is determined to
begin next week to pay out silver as green
backs, and WILL when desired, pay off accounts
against the government in silver, or will ex-
change silver for legal tender currency. To
prepare for this the Treasury Department is
having silver coined at the several mints as
fast as possible. Whether the relative value
of gold and silver will be affected materially
by this action remains to be seen.
At any rate there is not likely to be
considerable expectation of silver to Europe,
even should the balance of trade be more
against us. 1t might go to Asia, but not to
European countries, for gold is now the spe-