Year: 1875

the war. It OWeu Cue SOlulcTS, and sailors and contractors vast sums which it could not pay at once, and so gave it's promises to pay in several shapes. Some were in bonds drawing interest, some in certificates of indebtedness, some in notes payable on demand, the latter being the greenbacks. It has paid all it's bonds that have fallen due, and good many others not due. It has paid all it's certificates of Indebtedness. It has squared up all it's current floating indebtedness of ev- cry name and nature and does not owe anybody any debt that is past due; with just one exception, and this is the greenbacks. These greenback obligations ought to be paid just as much as any other obligation of the Government. If they were paid, the Government would be fair and square with all the world, and would owe no man cent ex- cept on its bonds, which are worth a premium in gold, and which no holder therefore asks to be paid of. The finances of the Treasu- " would thus be perfectly easy, and it could hold it's head high, and its credit would be unim- peached and unimpeachable be- fore the world; and it would not be long before this state of things would enable it to borrow money as cheap as any body on the face of the earth, and thus reduce it's annual interest payments much more than it saves now by keep out the greenbacks. Its real pc: cuniary interest would thus har- monize with it's plain duty.

 To do all this, it is quite un- necessary to pay any gold to any body, or to go through the farce the government has lately been engaged in, of heaping up in va rious quarters tons of silver to commence redeeming the fraction al currency. All that is necessa- ry IS that the Treasury should give notice that If anybody has got more greenbacks than he can profitably use in other ways, the government will take them up ard give its note or bond on in- terest at 4 or , per cent. for them on presentation. When this is done, the whole problem of resum- ption is solved, and in the course of time, and with out haste and without disturbance specie payments will come about of themselves. This is all as plain as a pike staff to everybody who gives any attention to the subject.

 But if the thing is so simple, and the way is so plain, why is not the plan adopted? It is said in answer that if you begin t9 move the greenbacks from circE- lation, you will create a scarcity of money, and the rate of intefcst will rise. But tue truth is the Fate of interest will not rise above what the government pays. The Nno- ment the borrower will give mSre for the greenback than the Treas ury pays, that moment the holder of the greenback will turn to him and lend it tinstead of going to the Government to exchange it for a bond. The whole thing can be controlled by putting the bond at a low rate of interest. Under such a limitation the greenbacks wonld be redeemed only when there was an excess of cheap money, and when nobody would feel it's loss.

 In this way we should creep gradually but steadily back, by a noiseless process, to a sound and stable circulating medium. It would brirg us back to specie payments by an almost impercept- ible process, and without requir- ing any of the formidable and cumbersome preparations which are dreaded as necessary to re- sumption. The amazing folly of the Government, in its recent and current operations to redeem thir. ty or forty millions of fractional currency, by accumulating silver which nobody wants, and whose attempted redemption will inevit- ably end in confusion and failure, tends to create and spread these very apprehcnsions, and so be- comes a stumbling block to the very change which the Secretary of the Treasury wishes to accom- plish.

 Why will not the financial de- partment endeavor to grasp this question in its entirety, and go before Congress at the next ses- sion with plan of redemption such as we have indicated? If it does not like one rate of interest, let it propose another. A rate can be found which will neither unsettle values nor reduce the volume of currency injuriously or even perceptibly, and yet which will fix and steady its value, and put the country on the road to sound financial condition.

 We consider the current discus cinp op ono SiIn and tho atha,