Year: 1873

volume OF currency 20 absorb great loan, and Mr..
expensive periods OF the war we needed an aver
age OF s., 600 GOO day for current expenses. we
mad out several forms OF currency oans-temporary
loans, payable on 10 days notice, issued under
three several acts OF Congress, and bearing differ
ent rates of interest, four. hve ana SIX per cent
interest in currency, or convertible into
bonds, hve-twentes and others seven-thir-
per cent or in currency seventhrty per cent and
alter certain period also c0nverlpie INTO ponds;
them all So ooo 600 day that they might withdraw
from business to invest IN any OF these lorms OF
Temporary loans Mr.. Chase saw that the financial
condition of the country was safe.


LOOK FOR YOURSELF.


The people lend the government s20oo,o0o on
Monday and the government purchases COM
modities the production OF our own people, with
those 81 100000 on Tuesday. Other people lend
the government $2,0oo.O00 on Tuesday, which is
again expended by 1t among them on Wednesday.
Continue the process through the week and you
WIN fnd tnat though but $2oo0,0oo of currency
have been used on any day, sl2 900 OF loan
have been absorbed. Extend the calculation


ana Ts n nS oa
result at the end OF the year would be . loan to
the government OF over 5000, 100000 ! therefore
as provided by the act Of 1852 already
Gates in the form OF bonds or otherwise, carrying
interest at the rate Of cent day upon 500, or
redeeming the United states dollar when presented
TO the Treasury; as means Of preventing the ac-
ID t9e men anas p b
OF the country during the growing season, and
while the canals and lakes are closed by ice. But
IL VIII accomplish an object, II possible more desir-
able than this, by placing


OUR LOANS IN THE HANDS oP OUR OWN PEOPLE,
at currency interest and relieving from the load
OF gold interest chiefly due to foreigners. under
which We are now staggering. We owe IN round
actual sum is between sss 600 and 500 600
and most this is have said, due to foreigners
the entire az production rod OF % our gold mines ls
1or the balancef The answer Is ready on the lips
OF mere theorists. by the balance OF trade;r but
the balance Of trade has been against us, uniformly
since long before the commencement or the war.
and it is answer 10 say that 1t has been for the
last two or three months in our avor. That it has
been so Is due to accident or Providence and not
to sagacious legislation. The crops OF Great Britain
far below the average while our crop is unusually
large. But where Will be the balance OF trade next
year. should II, IN the order OF Providence come TO
average, and those OF Europe be better than usual
Our exports will then fall or both IN quantity and
price, and. the balance OF trade Will be against us
again as 1t has so long been. Until We can reduce
our gold interest to such proportions as to enable
us to pay ii from our production of gold 1t is
NONSENSE TO TALK OF THE RESUMPTION OF SP ECIE


PAYMENTS


or to hope that our commerce may be conducted
on a gold basis. 1t is that we may bring home
these god-bearing bonds that propose the issue
OF temporary convertible currency loans.


CoRREsPoNDENT-How can temporary loans be
made to the government in paper, and reimbursi-
Bile, principal and interest, IN currency, aid in





Judge KELLEY have heard that proposition de-
nounced as an aosurdity in many quarters and am
happy in the fact that you have not asked me the
question whether the proposition is not upon us
lace abSurdlty. My bill provides that the Secre
tary OF the Treasury shall apply funds received in
exchange for these temporary and convertible
bonds to the purchase OF gold bearing bonds or OF
gold with which TO call such bonds, and it also pro-
poses to allow


THE BANKS TO HOLD THESE BONDS AS THEIR


RESERVE
in whole or in part. Before such bonds should be
on the market one year the Secretary would have
At nus commagd anywhere from 500, 600, 600 TO
wouid very gladly hold a reserve upon which tney
could draw 65-l00 interest. The president OF
leading life insurance company nom New York
has, within As hours, assured me that his COM
pany, which often had $4,000 in temporary loan
certificates, would average for 10 months In the
vestment. Some OF the leading merchants OF
Philadelphia have told me that they would be glad
OF such means OF investing their large balances
during the dull season. One manniacturer Of
Philadelphia to whom submitted the proposition
it, me by ns san Sos
and TINS was in October and after the
panic had commenced, thai there was then lying
would be very glad to put into 650o convertbles.
He could draw no currency upon hls checks and
membering what have said OF 81, 600 600 day in
vested in our loans having been sufficient to carry
year the amount or these bonus would increase,
and you will probably not regard me as exaggerat-
ing when say that in a lew years


THE GREAT BULK OF OUR GOLD D-BEARING LOAN
now held in Europe, might thus be converted into
currency loan held by our own people, and the
in gold, as 1t is now, to less than four per cent in
paper. Then, with the productions OF our mines
and the increased productive power OF our coun-
try, we might hope to induce flow or specie from
other lands TO ours in exchange for commodities,
gold and silver as part OF our currency. l say as
part OF our currency; for trust that the green
character and the people be thrown BACK upon
State banks or any other corporate contrvance
Tor currency The issue Of money is an attribute
OF sovereignty that should never be delegated by
the government.


CoRREsPoNDENT-But is there not danger, if SO
large an amount Of these bonds should be issued,
that they might come upon the Treasury unex-
pectedly and bankrupt it by disclosing Its inability


Judge KELLEY-Such an event is not, in my judg-
ment, WITHIN the range OF possibilities; and, IN
m ~ e % ~ the or
yesterday submitted Q resolution, which was
adopted by the House, calling upon the Secretary
OF the Treasury to inform


WHAT AMOUNT OF TEMPORARY LOAN THE GOVERN
MENT HAD RECEIVED


under each OF four laws OF Congress, and what
amount had been presented for redemption In any
quarter Of year. / think the answer to that
question will show that such loans are never
brouaht home for redemption in any considerable
amount. i am assured that when we had such
certificates outstanding to the amount OF more
than $120, 600 900, pressure ever sent home for
redemption $1,000 900 OF them in one week. and
that though under the acts OF 1862 the government
then Assistant Treasurer at New York never
avaled himself OF the right to notice, but paid all
such demands presentation. Again, at the
time of the Chicago fire there outstanding over
$6O,000000 OF three per cents, and that great fire,
lasting for three days and spreading conformation
throughout the whole country, drove in OF those
SEQ. 900 but 81, 600 Of temporary loan. Why
should holders OF such securities seek their re-
demption2


THE GREENBACK


is government obligation, without interest, and
why should a man VINO holds government obliga-
tion bearing interest and convertible into green
backs presentation demand an exchange for
others that bear no interest? What merchant, hav-
ing his debt secured by bond and mortgage, with
legal interest, would be foolish enough to surren-
der his security and his interest for the privilege
OF getting his debtors note without security and
with no interest


CoRREsPOSDENT-Might there not be possibility
that other securities In the shape OF first mort
cages and other liens upon real estate, Offering
larger rate OF interest than 3.65, would be more
sought by capitalists those having money 10
umIuish