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This item is filmed at the reduction ratio checked below/ 10X pcum sni a SC III mo a 14X u lau X a« rouu UllUll 18X IIIUIl 4U« \t i-uoa BUUB 22X 26X 30X ^ 12X 16X 20X 1 24X 28X 32X ■ aMiiaiTriMliffliai»frri«>(•-* -'f t>y transter from xSlational Monetary Ooninlaalon, 1012 L . ■ ' -. %«^|^^fi|- ■ A PLEA FOR UNCLE SAM'S MONEY; Ml. GREENBACKS vs. BANK NOTES. q The Cubuexcy — The most Important Question before the People. (From the Xew Yoik HeraW, 10th Dec, 1800.) Now that the question of rcconstructinp; the nation on a durable basis draws near its solution, one of no less importance to the present and future welfare of the country presents itself for prompt and earnest consideration. That question is, how to deal with our paper currency. This description of currency is the creature, and has now become the necessity, of modern civilization. Civilized society can no more do without a paper currency than it can dis- pense with the steam engine, the railway or the electric telegraph. The principles and uses of these have been wrought out by the patient labor and research of men of exalted genius ; but paper money has been the motive-power that has set all the vast ma- chinery involved in operation. Hen^r every man who has studied the subject from a scientific as well as ;• i ractical point of view, will admit it is one of lirst-class national importance, and as such de- manding the most careful and dispassionate investigation by our national legislators. The wisdom of retaining our national currency, and of retiring or canceling the national bank currency, is every day being recognized by all classes of the community, except those interested in the na- tional banks themselves. General Garfield, the chairman of the House Committee on Banking and Currency, to which this ques- tion is properly referable, has candidly confessed his conversion, since last session, to the views long and uniformly advocated by this journal. The argument used by those who favor the retire- f i \ I s miLiUiim- mcnt of our national circulation, and the substitution of national bank notes tliorefor, in that the former was a war measure, forced on the country by necessity, and ought to bo dispensed with as soon as i)08siblo. Senator Sumner and, it is said, Chief-Justice Chase and many other distinguished statesmen take this position; but none of this class of opponents have offered a single sound reason in suj)- port of this assumption, which stands as a mere brutumfulmen — a simjjle, unsupported declaration. On the other hand, the most pow- erful and unanswerable reasons have been urged in favor of the op- posite policy. As the question will probably engage the early attention of Congress, we propose to consider it in all its bearings, and to lay before our readers such a summary of the origin, uses and development of paper currency, and of the principles which gov- ern it, as will convince every candid and unbiased man in the coun- try that the views we have contended for arc right. Before entering into the merits of so great a question, wo will dispose of the unmeaning assertion that the national currency should be retired because it was the creature of necessity, at a time when the nation was involved in a life and death struggle. Now, it by no means follows that a measure adopted in time of war, and justified on the gi'ounds of necessity, may not be good and highly beneficial in time of peace. Necessity is said to bo the mother of invention, and whether the necessity originate in the exigencies of war or in "piping times of peace" the merits of her progeny must be weighed by the same standard and tested by the same rules of evidence. What is meant by the Science of Money. It is only since the commencement of the present century that banking and currency (embracing the uses and circulation of money and paper currency) have been treated as a science — that is, as being governed by certain determinate principles, deducible from known and uniform results. Like all inductive sciences, it is founded on the practical experience of mankind. That is, when we iind that history establishes the fact that certain eflfeets invariably follow cer- tain causes, or a certain definite policy, with as much exactness asthc demonstrations of the so-called "exact sciences," or mathematics, we claim this as a scientific solution of the questions involved. Though i 't^i^^'vs'J'iuktJi'r^kxi^'k ution of national ,r measure, forced nscd Avith as soon licf-Justicc Chase position; but none md reason in sup- irutumfiilinen — a nd, tliemost pow- n favor of the op- engage tlie early II all its bearings, if the origin, uses ciplcs which gov- man in the coun- ,t. question, wo will d currency should y, at a time when fglc. Now, it by imo of war, and good and highly bo the mother of the exigencies of er progeny must the same rules of VIONEY. sent century that iulation of money -that is, as being iible from known , it is founded on hen we find that riably follow cer- h exactness as the mathematics, we volved. Though much has been done since the days of Adam Smitli to evolve a reg- ular and flciontific solution of the money question, it must still in many respects bo regarded an wanting in system and as being in its infancy. Great Britain and France have produced many able and some very demonstrative writers on money and currency, consider- ed according to scientiflo principles. In this respect we have but little to boast of, but it is hardly possible that the prominence which this subject has assumed in this country will not wipe out this re- proach. The great desideratum of the present time is a concise and demonstrative treatise on banking and currency, showing the neces- sity of maintaining a national currency and none other. Although the columns of a daily Journal do not permit of treating the subject in any other tiian a brief and popular manner, wo hope to bo able to point out a solution, at once feasible and practical, of the ques- tion as it presents itself for consideration at the present time. The Origin of Pai'eu Currency. Wo shall comntence with a brief statement of the origin of paper currency, which, wo have said, has been the creature and has become the necessity of modern civilization. It will bo seen that the issue and circulation of promissory notes, payable at short dates or on demand, by banks, instead of by governments or nations, was purely accidental, and the circumstance affords no argument in favor of con- tinuing the system, if a better one has been discovered or can be proved to exist. Up to the thirteenth century merchants were compelled to trans- mit, at great risk and cost, all their remittances from one country to another, and from one part of their own country to another, in gold or silver coin or bullion, in order to maintain the balances of trade. This circumstance of itself, at a period when expresses were unknown, and when neither the public conveyances by sea nor by land were free from danger, would necessarily limit the growth of trade— especially between distant countries. At length, early in the century just named, the Lombard merchants— a class of shrewd money dealers— invented what were termed "money dealers' letters," which were, in fact, bills of exchange, A small sum was added to the amount demanded for these bills, to cover risk of transferrenco of balances from place to place in coin, which these dealers could I! ~l.(ui^'i olTont chonpor timi, ordinary ino.clmnt. and travelers. Thcso a "ri..T'n ^'■'""^. '^••*">""''o.lato,l by this simple expedient, and. as tl. .r IM Is were transferable by indorsement, they soon passed f om han.l to hand, nn.l were at length rcccised as a kind of cireu- latin^ nicdiujii or currency. nnr?n? m'" "" T''\' ' "'"""''' '' '' ^^^"'' ^"'•''^''^y "H the early IZ T'"TT^' ''-'"'"'''^'' ^^'''"" ^''^ »'^"'^ of An.sterdam was Furo r"S- T", '"' ''''''' ^"'"^ •" -•-•'^''- thr.a.ghout we X \ T' ''^'"'"^•"^'"l !>>' ••*^«oivM.ff gold depo..Us by m '"^1^7"""? ••'^^^'■P'^ ^''^'-'-'for. ".aking a B:nan deduction for the cost of recomago. The.e receipts were granted for six monts payable to bearer, and. in consequence of the high repute sta! tho" nV """;'• '" •" ^""'■"' ''"■^"''^*'^" '^^ '"°"^y- *>«•" this nS.Io , ^ r" ''"""^ promissory notes of (ixed denominations, payable to bearer on demand, and the use of checks, was an easy JL^^l ''r ^° ^.^«" *''^^ ^^''i'" banking is claimed by eminent wr e.s to have ex.sted as early as the time of Moses, the use of bank notes for money is of very recent date. The principles wliich govern a paper currency will bo considered at another time, and the advantages of a solvent and opulent nation's currency over that ot one or many banks pointed out. Grrat Importance of the Currency Question. (From the Sow York Uornld, ISlh Doc, 18U9.) tl,„y!l"* ^''''' PT'^''"^" *o ""3 question is the circumstance that the currency of a country is a permanent, ever-abiding neces- 6ity-a thing not of months or years, but for all time. While in- dustry and commerce continue to exist, or, in other words, so long as the human race shall inhabit the earth in its present form, cur- rency, m some shape and nndcr some condition or other, must bo maintained to circulate commodities and keep all the complicated and varied machinery of labor in motion. Hence the question of funding the national debt, which is only a temporary charge on the industry of the people, and the readjustment of taxation, which is merely an incident growing out of the same, are matters which the economist and the legislator can only regard as of secondary im- portancc. •' 1 ravclors. Tlicso lo expedient, und, they soon passed 3 a kind of circu- iicy till the early ■ Amatcrdam wa.s '8 growing out of tion throughout ;old depo.dts by 8;nall doductiou granted for six the high repute ncy. From thin 1 denominations, :ks, was an easy mod by eminent loses, the uao of principles Avhich other time, and ■rency over that JESTION. circumstance ■-abiding necos- mo. While in- words, so long (Sent form, cur- other, must bo lie complicated the question of ' charge on the ition, which is ters which tho secondary im- Thb Adoi'tiox op Hank instead op Govrrnment NoxEa, kor Currency, the Hesuf-t of Accident. Wo have shown tho origin of paper currency, and that it was rather the result of accident than of any preconceived theory. Tho " raonoy-doalors' letters " of tho Loiriiiard merchants, in tho thir- teenth century, were simply bills of exchange, similar to those of the present day, Miiicli wo shall hereafter classify with tho various kinds of currency recognized by modern political ecomomiats. Thoir circulation, howcvor, was limited, and wo have no evidence that they were used as money then more than now. The gold certificates of tho Bank of Amsterdam, which were payable in six months, did take the place of gold as a circulating medium. Now, it was the acci- dental circumstance of tho issuo of this currency or "paper money" by tho Bank of Amsterdain that established the practice or system which has ever since prevailed of limiting tho issuo of promissory notes, payable on demand in gold or silver bullion or coin, to banks. Had tho government of Holland or of any other opulent country been the first to issuo such certificates or demand notes, it is not only probable, but certain, that the usage would have been confined to tho national administratiops, instead of being turned over to a number of private corporations, or to one great national monopoly, as in England, Franco and other European countries. When gov- ernments havo resorted to tho practice of issuing paper pi-omises they havo in all cases done so, not to create a convenient circulat- ing medium, or to promote the ends of legitimate commerce, but to create capital or resources, out of the credit of tho nation. Henco such notes have as invariably been irredeemable, and, as a conse- quence, have depreciated ivhen issued in excess of the requirements of commerce. The argument of Senator Sumner and other statesmen, that wo should make haste to abolish our national or government currency, and substitute in its place the paper of an infinite number of banks, has no better foundation than the reason ofiered by the countryman who was asked by his more enlightened neighbor why ho balanced his bag of grain on his horse by means of a stone of equal weight, when he might readily divide his corn between the two ends, and thus relieve his beast of half his load. His answer, we are J Tiiitifrififii , 1 ^■ ^ m Hii > il am ' 0Mt e mb^lkiuJili |i i!^ t- 8 or ; rcten ion o? •" *? *''^ «--P«"ments. Those who arguo lor a 1 ctention of our national currency and for abolishing our bank ZZVo'IZuof-!' '"'i '^' ''' ^'^P™°* - far fried as to Trlnl fW . ^f ^ '"'"'"'^"^ ^'^^"''^^^ «f th« ^'^tion shall cnt . -f fill ""^ consequence what the originators of our pres- -Ihetnllr' •'r^T!''"P''*'^ ^^^" *^^y P"t it i° ^circulation -^hetner hoy intended it as a temporary war measure or as a permanent institution. If it has served a valuabrpurpose and has as we contend it has. produced a large share of tirre Ices of the prosperity which has since enabled the country not ^nly to wealth in a ratio never before known in this or any other commu- nity, or in any age of the world, then, we say, let us not destrH and go back to the worst and most precarious system of curr^ y The Object op a Paper Cubbency Considebed. duftl''f/rr'' t°.'^«'"°n«trate, by scientific reasoning or de- ducfon that the issuing of that description of currency which takes the place of money, and which we shall refer to occa ionaUv as paper money, in contradistinction to money, or sp 1, as woU ^ to those other kinds of paper currency which while thJy seTve to circulate commodities, are not received or u ed as moTev hould be confined exclusively to the nation. In order the morT'exS' obie'of of -T^'^r^ are aiming at. we must briefl'tate the ^:^Z:^-' '' ''' -'-'^ «^ ^ P'P- ^or a The object and purpose of money, in whatever form, is to circu- nTcTatrr^*' " ^^""^ ''''''' '^ " facilitate 'exchng' Befl fhl J' 'f ^'°^'' ^^ '^°*^«"°^ '^'^ unnecessary. Before the invention of money the commerce of the world mus have been carried on by the rude process of barter or by exchant ing one kind of produce for another. Gold and silve hiving been selected as a common measure of values, because of their scarcity ^a^.V^>;mrir'--' r ■ ■] ' ,S^ss^»^^^^^--^-^;^.^-^j^ 9 d dono so before rhose who argue )lishing our bank • far tried as to 3wth of our com- the nation shall md natural pro- tors of our pres- ; it in circulation measure or as a )le purpose and f the resources, itry not only to )p its incredible y other commu- 3 not destroy it, }ra of currency Law or of the :debed. asoning or de- irrency, which to occasionally 3cie, as well as they serve to money, should more exactly riefly state the a paper for a m, is to circu- B exchanges." unnecessary. I world must 'by exchang- ' having been their scarcity and great value as commodities, at once abolished the practice of exchanges of commodities, both in domestic and foreign trade. When writers assert that " money is the medium for effecting the exchange of commodities," they simply mean, that being the meas- ure of values, the owner of it may procure such as he desires with- out the necessity of keeping on hand one kind of merchandise to bo exchanged for another. The object and purpose of money is, then, ia promote or facilitate the commercial transactions between indi- viduals and countries, by doing away with the system of barter or the exchange of one specific description of merchandise or product of labor for another. But to do this it was necessary, until the in- vention of paper currency, payable in money on demand, or at a specific date, came into vogue, to transfer the precious metals in the shape of bullion or coin from the purchaser to the seller. In a small community there miglit not be much inconvenience in this latter method. But it will be obvious to every man of reflection that in largo communities and wide-spread transactions great incon- venience and risk would ensue. Hence it will be equally obvious that the notes of a solvent bank, or a government, convertible into gold on demand, must tend greatly to promote the ends of com- merce, and in the same degree stimulate industry. We desire to fix these universally accepted principles on the minds of readers, because they form the groundwork of the great question as to what kind of currency we shall henceforth have in this country. i , ; ' The Various Kinds op Curbency Used in Cojimerce. We have a few more general principles to elucidate before we can reach the main question coming up for discussion in Congress. We have to state the fact that there are several kinds of currency in continual use in commercial countries. First, there is gold and silver, or money proper; secondly, the demand notes of solvent banks and governments, which are divided into two descriptions, governed partly by the same laws — namely, redeemable according to the terms of the promises, and irredeemable. Both kinds are usually received and pass as money, and may properly enough be called " paper money." And, thirdly, all other kinds of commer- cial paper, such as checks on bankers, time notes and bills of ex- change used in circulating commodities. These constitute the cur- # J. 10 rXnVr "^''*^ "'"'f • ^'^'"""^^ '^^' ^'"^ "«t •^^"^'"o^ly used n circulat.ng commodities, such as tl.o bonds of governments states, municipalities and corporations, must be excluded, as not' passessing the requisites of c^rrency, which is money, or its repre- sentative or equivalent in the markets of the world. We hav^ now narrowed the subject down to one of close reasoning and dem^ onstration, at which we shall endeavor to arrive. . The Poweu of the State or Xation to Issue Paper Money Examined. (From The New York Herald, ICth Dec. 18C0 ) oullirT' *° '''"''^'' *^' arguments in favor of maintaining our nat ona currency and of making itfor all time the only "papef money of the nation. We have already shown that there are no be t.r reasons in favor of making the national bank currency the on y paper money than the circumstance of its accidental origin, and the prescription of time, which may be pleaded in favoi of most of the " time honored" vices and abuses of society. The accl dent of our civil war has, however, given us a circulating medTum use aJ' TT *' '^r'-^''''''' ""'''' ^" ''^' ««««"*-! object^ uses and advantages of a paper currency, while it is free from al the evils which have been found to attend that of bank notes. the duty of coming money and of regulating the value thereof is properly, and rightly lodged in the sovereign power of t State This IS a pi-oposition that no one is likely to dispute. Tt i« 1 .r would b^d!' ""''.* '""P"''""* ^™'"^°^ "f government. whTch h would be dangerous to entrust to any individual or corporation who vnS • i ^*'' "PP'^ '"^"^ "^"^^ ^^'•^^ t° «'c principles in- into" oW Altrr' '"«°«^«-«"t of paper money, convertible or, 1,^1 . 1 ^^ °f P'^P'' '' ^' P'-^^^^^t irredeemable at par of inSr.;^^r''" f''' superabundance, there are but few m^en of influence in the country who do not take the ground that we must in one way or another, get back to a specie basil or to a resumZn of specie payments. We therefore treat the subject in refcrenc to SUCH a condition of things, and take the ground'that the is u ng ^f |\ iiiii'Tiii-iiTfitar.' >t commonly used of governments, excluded, as not )ney, or its repre- orld. Wo have isoning and dem- ! s Paper Money p of maintaining the only "paper iliat there are no nk currency the ccidental origin, ided in favor of !iety. The acci- 3ulating medium essential objects, t is free from all ank notes, d principle, that value thereof ia cr of the State. 0. Tt is one of nment, which it orporation who 3 reasons which er solely in the le principles in- ley, convertible eemable at par re but few men i that we must, a resumption in reference to ; the issuing of \ 11 that description of currency, which wo have designated in former articles as " paper money," of right belongs to the sovereign power of the nation or State. Money, of whatever kind, concerns the whole people, and the experience of two centuries has shown that its issue in any form cannot be entrusted with advantage to private corporations or individuals. The allegation that tlie issue and management of a national currency opens the door for fraud or party abuse, applies with exactly the same force to the coinage and management of gold and silver currency. When our currency shall become convertible on demand into coin, there can be no shadow or pretense for urging such a weak argument We therefore claim it as a first principle, and as the natural right of the people to have and possess the sole and exclusive power to issue, through their national government, both the gold and silver money and the paper money founded thereon, for the purpose of economizing the former and stimulating industry and commerce. The reasons in support of this claim or riglit are, first, because no corporation or individual can offer the same security as the State, which represents the whole property of the nation; secondly, because the important advantages resulting from the issue and circulation of paper money should enure to the whole people, and not to those who already pos- sess a largo amount of accumulated capital.* The Question of Security Considered. Let us briefly consider the first proposition — security. Public confidence in the ability of the promisor constitutes the first ele- ment to the success of a paper circulation, and this is founded on the security guaranteed by the issuer. If the government offers the highest order of security, then it is manifest that a government cur- rency will command this first element necessary to maintain a paper circulation. If, on the other hand, 1,600 or 1,700 national banks, which Senator Sumner and others propose to increase indefinitely, possess individually and collectively a higher order of security, then their notes should take precedence over the national notes in this respect. But the experience of this country, ever since the issue *ThiB article was written before the writer had his attention directed to Mr. Chase's report to Congress, advocating a national currency, hereafter quoted. i :i itBPWa«%,i«M«w»k;vi^,***^.,**»Kdre than with the '• the best author- in money, bills of ufacturers and all ances on all such Bured by bills of 3 quite a modern least as the days ents to enter into m with the public, v^er the principles e supply of paper f the principle bo er agent for pro- ting medium, and ly follows that it its management. 5 imposed on the ve once widened ey, it becomes of I administration. W The Excessive Issue op Paper Money a Serious Mistake. We have now arrived at the grand problem demanding solution. Had the framcrs of our legal tender net understood the principles which govern a paper currency, or, indeed, any other kind of cur- I'ency, the nation would have escaped very much of the injury it has sustained from a redundant circulation, the evils of which are not yet ended, and will only cease by an appreciation to a specie basis. It was a complete misconception of first principles and in direct violation of sound policy, deducible from all past experience, to issue so large an amount of inconvertible paper in so short a period. To add $500,000,000 to the ordinary amount of bank circulation, every man having the least knowledge of banking and currency foresaw would produce a complete unsettling of values and derange- ment of our monetary and commercial aflfairs- Even though the suspension of specie payments had been averted by some miracu- lous circumstance, such an amount issued, in one or two years, must have been productive of mischief by being in excess of the legiti- mate demands of commerce. These considerations servo to point out the necessity of having a department of the government created to manage the whole business of coining money and issuing and managing the paper currency. There are many reasons why this department should not be connect- ed with the Treasury. The management of the national finances and the provision of the national money, or circulating medium, are totally diflferent in their details as well as principles. Until they are sparated there can never be a sound and scientifically establish- ed system of currency in this or any other country. The tempta- tion to issue notes in excess of the requirements of commerce ought, for the reasons already stated and for others equally obvious, not to be left in the way of a minister of finance, who is too apt to consult only his immediate necessities. Had this provision been clearly settled by tho Constitution we should not have witnessed another exemplification of the folly of attempting to create national resources by an overissue, or, more correctly speaking, an excess- ive issue, of irredeemable promises, and our debt would not have reached much above one-half its present volume. 1. i ,1^ ^* Reasons why the 10 Banks Should Notes. NOT Issue Ciuculatino Still more cogent are the reasons against the banks being endow- ed with the prerogative of providing any portion of the circulating medium. Wo have conceded that it does not belong to the govern- ment to supply loanable capital to the community or to trade in money, except in certain emergencies, and for a strictly temporary and legitimate purpose, which will be hereafter referred to. But It would be much more defensible for it to do so, than it is to per- mit the continuance of a practice at variance with the natural rights and interests of the people. Tho use made of this vast power by the banks exemplifies the utter defencelessness of tho principle in- volved. It is an undeniable fact that the banks use this great na- tional gift, amounting in the aggregate to $300,000,000, to earn tho largest possible dividends for their stockholders. This is a question we have a right to go behind. We have a right to consider the uses made of this vast free gift, which ought to enure to tho advantage of industry at large. In order to earn the largest possible dividends, it is a notorious fact that tho bulk of the banking currency is used to aid great speculators in a wide- ly extended system of stock and other equally pernicious gambling in the products of labor. Thus the bulk of our loanable capital has become a monopoly in the hands of a limited number of great capi- talists, and the eflfect is to make the rich richer and the poor poorer. Though we may not bo able to prevent this abuse of capital, it is nevertheless a powerful reason against the continuation of so large a State gift to such unworthy recipients. Let this question be fairly met. Let Mr. Sumner, the great cham- pion of a bank in preference to a national currency, answer it—is It right, or justifiable, on any national grounds, for the goTornment to continue what seems so monstrous a wrong on tho community ? The privilege of issuing $300,000,000 of currencv cannot be worth less than $30,000,000 a year. The prerogative of providing the circulating medium and of being the sole judge of its sufficiency can- not be safely trusted in the hands of individuals or corporations It belongs of right to the nation, and the nation alone should pro- vide for Its emission and control in the way we have pointed out iinirf'ri-Tiriiiini'Tiirriili; msmi iKfi'iiiiiiC-li'-'iinifii-'ii SUB Circulating •anks being endnw- a of the circulating long to the govorn- nity or to trade in strictly temporary r referred to. But 0, than it is to per- tho natural rights his vast power by f the principle in- I use this great na- 00,000, to earn the • hind. We have a » gift, which ought In order to earn fact that the bulk ulators in a wide- rnicioua gambling anable capital has iber of great capi- i the poor poorer, se of capital, it is nation of so large r, the great cham- icy, answer it — is r the government I the community ? cannot be worth of providing the ts RuflSciency can- or corporations, ilone should pro- lave pointed out, 1 IT or in some other equally sound and reliable. General Garfield, the able and accomplished chairman of the House Committee on Banks and Currency, has candidly acknowledged his change of views on this most important question. Ho supports our theory, and so will every logical mind that examines the subject by the light of expcri once and the aid of science. A Board of Control Rkcommended. What is needed, then, is a department to prepare and regulate our money, which is not only " the sinews of war," but the very hfe-blood of the nation. This department may properly be called the Board of Control. It should be composed of at least five com- missioners, one of whom might be a cabinet minister and the pre- siding officer. The others, like the judges of the Supreme Court should be selected for their peculiar qualifications for the duties to be discharged. They should be paid in proportion to the high re- sponsibility of their positions and the ability indispensible to the efficient exercise of their official functions. Like the judges, they should bo made, as far as possible, independent of political influence, and bo removable only for cause shown and by impeachment. The position of the presiding officer would bo analogous to that of the Master of the Mint in England, and ho would be the medium of communication with the other branches of the government We shall not enter into the details of the proposed measure, which would require much careful consideration to prepare. These details would have to be framed in reference to the duties the commission- ers would have to perform. The experience of the Managers of the Mint and of the Currency Bureau would no doubf. be valuable But the Board of Control should have very extensive discretionary powers. We also propose to make the Board of Control the de- pository of all the funds of the government at present received and disbursed through and by the Secretary of the Treasury. This would bo necessary in order to concentrate the whole financial power of the government in aid of the system which is to be thus made permanent. It would take the place held by the Bank of England in respect to the British government. The board would therefore, have to establish agencies wherever it has been found necessary to do so by the Treasury. It would, in fact, occupy the ■• ifattMiiitfMUimiMtt ifalta i u ground at present in possession of that department, and the Secre- tary of the Treasury would deposit nil the funds of the nation in tlie af?encic8 in question and draw his requisitions for the same when needed. The BoAnn to Reoulate the Volume ok CunRENCT Accord- ing TO Scientific Principles and Experience. The board should bo the sole judge of the amount of paper money or demand notes necessary to bo issued and kept in circulation. On this point hinges the grand feature of the proposed reform— wo might almost call it a revolution— in the management of our cur- rency. A volume might bo written to demonstrate by past expe- rience the beneficent results which would follow the establishment of a well regulated system of money or circulating medium. Wo reserve for another occasion tho elucidation of the principles which would guide the Board of Control in the exercise of its high func- tions. (The followiog arlldei h»v« not before been publUhed.') The Testimony op Chief-Justice Chase in favor of a National cuubency. Mr. Chase, when Secretary of tho Treasury, in his report to Con- gress in December, 1S61, suggests the following cogent reasons in favor of a national currency. " To enable the Government to ob- tain the necessary means for prosecuting the war, without unneces- sary cost, is a problem that must engage the most careful attention of the legislature." He then goes on to say, " the circulation of the banks of the United States on tho first day of January, 1861, was computed to be $202,000,707. Of this circulation $150,000,000, in round numbers, was in the States now loyal, including Western Vir- ginia, and. $50,000,000 in the rebellious States. The whole op this CIRCULATION CONSTITUTES A LOAN WITHOUT INTEREST FROM THE PEO- PLE TO THE BANKS, COSTING THEM NOTHING, OXCOpt the expense of issue and redemption, and the interest on the specie kept on hand for the latter purpose ; and it deserves consideration whether sound policy does not require that the advantages of this loan be trans- ferred, in part at least, from the banks, representing only the in- Id nt, and the Sccro- s of the nation in For the same whon riRKNCY Accord- EUIENCE. J it of paper money pt in circulation. )08C(1 reform — wo ment of our cur- ito by past cxpe- tlio establishment ig medium. Wo principles which I of its high func- ed.) R OP A National is report to Con- ogent reasons in overnment to ob- without unneces- careful attention 3irculation of the nuary, 1861, was $150,000,000, in ing Western Vir- lE WHOLE OF THIS 3T FROM THE PEO- t the expense of sio kept on hand •n whether sound 8 loan be trans- ing only the in- terests of the stockholders, to tlio (Jovernnicrit representing the n^- gregato interest of the whole people." The Secretary next questions the right of States to confer on banks the power to issue a circulating medium, and then proceeds to say, " hoicever thia may be, it ia too clear to he reasonably dinjmU'd that Congress, under its constitutional poicirs to lay taxes, to regu- late commerce anrl to regulate the value of coin, possesses amjAe au- thority to control the credit circulation tahich enters so largely into the transactions of commerce and affects in so many ways the value of coin. In the Judgment of the Secretary, the time has arrived when Congress should eaeercisc this authority." • * " In the face of such arguments, with what consistency could Mr. Chase subsequently demand the passage of a National Bank Bill for $300,000,«00, thus making tiio enormous gift, or, as ho himself termed it, "loan without interest,'' of $150,000,000 to those who were invited to form new banks under that act? It is true, the proprietors of these additional banks were obliged to purchase $165,000,000 of Government securities, to bo lodged with the Comp- troller, before they could avail themselves of this great benefac- tion. But it will be seen that the Secretary, as the authorized agent of Congress, supplied the purchasers with ninety per cent, of the purchase money, in the shape of national bank notes. The net result, then, was $15,000,000 to the Government, when it might, and of right ought to have had the benefit of the whole $165,000,(100. If the Secretary had granted this loan without interest to the nation, instead of to the bondholders, to enable them to establish banks for their own profit, it would have saved the necessity of bor- rowing $150,000,000, and compelling the nation to pay interest therefor. If we compute compound interest, which we have a right to do, on this sum, our debt, according to Mr. Chase's own show- ing, would now be $212,500,000 less than it is, and Mr. Boutwell could reduce taxes to the amount of $12,750,000 a year, or have that sum to add to the sinking fund for the current year more than he has, and this would go on increasing each year at compound in- terest. So much for Mr. C!i ise's financiering. There was at least a fair ground for making such a concegsion to the State banks, whose capital amounted to $160,000,000, for the abandonment of franchises and benefactions conferred on them by 1 ii'. < States. Hut aa tho wliolo $300,000,000 of tho pcoplo'H money, credit or capital, call it hy what name you ploaso, «o genorouBJy bestowed by Coiigresn on tho wealthy claBHCS, making them so much richer and tho laboring claHscs ho much poorer, has bccorao a vostod and legal right, according to tho laws of Congress, tho present bank proprietors should perhaps bo indemniliod if tho " loan without in- terest " should bo withdrawn in order to give to tho country a uni- form national currency. On this point wo have nothing further to say. Wo are discussing principles. If they are true and well established, it remains for Congress to remove all difiicultics and give them effect. Tho banks themsolvos should bo tho first to recognize the desirability of establishing a permanent and ecientiflc circulating medium, and would no doubt moot the Govornmont half way. j'.i >;^(tt s : 'i h-:>"- Free BANKrmj. Under such a system of currency, free banking becomes a neces- Bity. There is no more justification in limiting the right to organ- ize joint stock banks to some 1,000 institutions, or, to speak more correctly, to limit tho gross amount of capital to bo allotted to any number of such institutions, than there is to limit tho number of traders and manufacturers, and tho amount of capital they shall employ in their respective pursuits. The business of banking con- sists in trading in money, bills of exchange, &c. All who choose to form themselves into associations are entitled as a natural, inherent right to tho privilege of doing so, to tho extent of thoir means, just as merchants, manufacturers and others are authorized to do under general laws. Nor have bankers or banking companies any greater claim on the public at large for Government benefactions, or "loans without interest," than other trading and manufacturing corpora- tions. What the Cby for Free Banking at present Means. The moment wo divest our minds of the unfounded idea that banks are the proper sources for supplying the circulating medium -the moment we concede that right and that duty to the nation the monstrous absurdity of our present system of banking becomes apparent. At present the cry for free banking means the right to ) pcople'a monoy, so, 80 gcnorouBly iiig tlicni 80 mucli 8 become a vested the present bank ' loan witliout in- Ito country a uni- lothing further to true and well II difficulties and 1 bo the first to ent and scientiflo Oovcrnmeut half becomes a neces- riglit to organ- r, to speak more aUotted to any t the number of ipital tlioy shall of banking con- .11 who choose to Qatural, inherent their means, just izcd to do under inies any greater ctiona, or "loans ;turing corpora- NT Means. mded idea that ulating medium y to the nation, anking becomes ans the right to tl convcyt tli( hole national d«ht into a baHis for the Ihsuo, l)y the Comptroller, of " loans without intorpst," in the shapo of niitional bank notes. It is simply a proposition to onable the holders of national HPciiritics to own thfrfo desirtble investments, draw the in- terest on the same, and, at the satno time, get 90 per cent, of their par value in money a» a bonus. Why should not the owner of a house or farm have the same right accorded to liim ? Thin is just what that eminent Scotch financier of 150 years ago, John Law, j)ro. posed. It is in fact a proposition involving the monstrous absurd- ity that a man may own his property and at the same time possess the value or price of it in money. The Nkw Tiieobv of Fuee Bankino. When wo have only a national currency, redeemable at par in specie, it will at once bo seen that no possible evil can arise from perfect freedom in banking. The nation's raoue) being under the regulation of an intelligent Board of Experts or Control, such as we have suggested, would always bo kept up to a volume adequate to the growing business of the country, and anybody of individuals desiring to organize as a banking corporation should be allowed every facility for so doing. The power of granting franchises might be left with such board, or with any other authorized official. The Fallacy op " An Equitable Distribution of the Cuk- There are several bills now in Congress intended to provide for a more equal distribution of the currency, the real object, how- ever, of nearly every one being to enable a number of bondholders and speculators to get their hands into the national treasury. They all aim to retire a part or the whole of the national notes, and to substitute in their places bank notes, predicated on national securities. The bill which seems most likely to become law, unless the President interposes his veto power, is that which has passed the Senate, and is now before the House Committee on Banking and Currency, of which General Garfield is chairman. The object of that bill is professedly to "equalize the distribution of the cir- culating notes." It proposes to retire $45,000,000 of three per cent, temporary loan certificates, and to issue to certain Southern 22 and Western States as a " loan without interest" an equal amount of money in the sliape of national bank notes. Nothing can be more flimsy than the reasons urged for this additional act of plunder. These three per cents, serve, to some extent, the purposes of currency, and in order to retire them the Secretary must borrow at a higher rate of interest and thus add to the debt, or he must use his surplus revenue if he has any for that purpose. National bank notes, by reason of their being secured by government bonds, possess the quality of uniformity of value in every section of the country. Now, it is a law of currency, or money possessing this quality, to continually flow to the great oceans or centres of commerce (just as water finds its way through innumerable rivulets and streams to the oceans and lakes), whence it is carried back to purchase and transport to market the varied products of labor. Only such an amount is retained as is necessary for local requirements. The laws of nature, which keep up a per- P'oiual circulation of the waters of the earth, admirably illustrate the laws of currency. Then what a transparent humbug it is for Congress to put for- ward such a pretext, for what every man who votes for the measure knows to be a gross fraud on the rights of the people. It is said that many of the prominent members who support this measure do so to meet the demands of a powerful lobby and satisfy clamorous constituents. No explanation or apology can change the plain, unvarnished facts and fallacies involved in this and all similar proposals to increase the bank circulation at the public expense. To accept of Senator Sumner's bill would be to increase the national debt $200,000,000 and to present the avails to the bondholders. Who will profit by the Pboposed Redistribution ? We are assured, by well informed persons, that a considerable number of Senators and members of the House who favor these projects are entirely reckless of consequences; that nearly all such have friends and partisans who are anxious for a measure which promises to open a vast field of speculation and wealth to a few at the expense of the country. It is asserted that there are now many Southern and Western men in this city engaging Govern- in equal amount urged for this . serve, to some retire them the and thus add to has any for that )cing secured by aity of value in of currency, or 17 to the great its way through i lakes), whence irket the varied . as is necessary keep up a per- rably illustrate fress to put for- for the measure )ple. It is said this measure do itisfy clamorous in, unvarnished IT proposals to ise. To accept 3 national debt olders. IBUTION ? a considerable rho favor these nearly all such measure which ilth to a few at there are now jaging Govern- 1 28 ment bonds on which to organize Southern and Western national banks, under the Senate currency bill. The process is an easy one, and when it is understood the complete deception of " redistribution" will be perceived. We will suppose it to be sought to establish a national bank with a paid up capital and circulation of $1,000,000. The new organization will have to provide bonds of the par value of, say, $1,100,000, the notes to be issued thereon being 90 per cent. The only capital, tliereforc, required to complete a legal organization would be the margin of $100,000 and the premium on the bonds, which may be called 10 per cent. (It may be nothing wlien gold falls to par.) Tliis, added to the $100,000, makes $200,000. The remaining purchase money, amounting to $1,000,000, the Govern- ment will generously advance, in the shape of a "perpetual loan, without interest"— for these very "circulating notes" may be used to pay the whole of this $1,000,000— towards the bonds which are to be made security for the notes. This, of course, will not be done in quite so direct a manner as wo have stated it. The form of discounting a number of pieces of commercial paper, and per- haps a number of other forms known to modern masters of finance, will probably be complied with, in order "to cover up the tracks" of the operators. But the net result will be a full-blown national bank, located, we will say, in some remote Western or Southern city. It will thus be seen that the "apportionment" of the $1,000,000 for that particular locality first serves the purpose of a grand stock or bond operation in Wall or Broad Street. But, it will be asked, where is the capital for "banking" to come from? Oh, that is the easiest thing in the world. The managers will, of course, take the best building in the far oft" city, and make a display of a few tliouaand dollars of their bran-new notes, and will receive deposits and commence selling bills on New York. If they are smart, this will soon furnish funds for the discount of prime commercial paper, and supply the requisite amount of greenbacks for the redemption of any stray notes that may find their way from New York, where they are soon mixed up, promiscuously, in and with the great ocean of currency, national and bank. Will Presi- dent Grant investigate this question, in the interest of labor and honest industry, before putting his signature to any such measure ? So much for the cry for "redistribution," raised to humbug the public. 24 III i i Testimony op IIox. Mr. Spauldino. It is, perhaps, not saying too much to assert that the country owes It more to the Hon. Elbridoe G. Spauldino, of Buffalo, than to any other man, that it has enjoyed the vast advantai^cs of sound national currency during the last eight years. It is extremely doubtful whether the war could have been successfully prosecuted but for this currency. Indeed, it is almost demonstrable that it would have terminated ingloriously, before the end of the second or middle of the third year, but for Mr. Spaulding'g determined and success- ful efforts to establish our national currency. It was, beyond question, the motive-power that set our armies and navies in active motion, and at the same time stimulated productive labor every- where to provide the means necessary to the occasion. Mr. Spauld- mg has lately published a valuable financial history of the war in which he modestly takes less credit to himself than he is entitled' to for the part he took in carrying through Congress the first and sub- sequent measures authorizing the issue of "treasury notes, payable on demand." Mr. Chase only " suggested" such an issue, but pre- ferred and recommended what he, himself, designated the raising of money by granting " loans without interest" to a vast number of na- tional banks,who wore to use these loans to purchase interest-bearing bonds of the United States. Mr. Spaulding, as chairman of the sub-committee of Ways and Means, "recommended," and by a con- vincing and powerful speech, carried the measure that gave us the first and subsequent issues of greenbacks, which may properly be called the people's money, in contradistinction to the banks' MONEY. While making this just concession to Mr. Spaulding, we might perhaps, be able to demonstrate that a great error was committed m not suppressing the entire bank circulation, making adequate compensation for it by payment of damages in treasury notes, and then maintaining specie payments. The Government had the power through its revenue channels, of controlling all the gold in the country, at that time amounting, according to the estimate of Secretary Chase, to $275,000,000. On such a basis, or even on half that sum, the nation, with all its vast resources, could have main- tained specie payments on a circulation of $500,000,000, and that 26 NO. the country owes ffalo, than to any )f sound national ;remcly doubtful osccutcd but for le that it would second or middle nod and success- It was, beyond navies in active ;ive labor cvery- tn. Mr. Spauld- y of the war, in he is entitled to he first and sub- j notes, payable n issue, but pre- 5d the raising of 3t number of na- interest-bearing chairman of the " and by a con- liat gave us the lay properly be to the banks' ling, we might, was committed iking adequate sury notes, and had the power, le gold in the lie estimate of )r even on half uld have main- >,<)00, and that amount would have been ample for all the fiscal purposes of the war. Tub Wau should havb been Fought on a Specie Basis. The idea of selling the government securities below par was a bugbear at which Mr. Spaulding and otiiers became frightened, and they fell into the error of issuing too large a volume of circulating medium, which finally reduced tlie proceeds of loans to only fifty cents on the dollar of gold. With the enormous increase of com- mercial and industrial transactions, caused by the war and by the extraordinary development of our railway system just prior there- to, $500,000,000 Mas not too largo a volume of currency, and would now be too small, even on a specie basis. No one will dis- pute the assertion that the war might have been prosecuted on a greatly reduced expenditure if we had maintained specie payments, even if our bonds had to be sold at ten, twenty, or even thirty discount. But we have not space to enter into an elaborate argument on this particular point. We simply desire to givfi Mr. Spaulding the credit he is entitled to as the real father of the national cur- rency, lie still adheres to the principle thatit ought to be main- tained as a permanent institution, as wo understand from a letter received from him, in which he says he has not changed his views as expressed in his speech at the meeting last year of the National Bank Association, wherein he proclaims his strong predilection for the greenback currency. Mr. S., from his extensive scientific and practical knowledge of banking and currency, and as a practical legislator, is just the man to be placed at the head of the proposed Board of Control. , The Testimony op the late Hon. Thaddeus Stevens. At the close of the debate in the House on the first legal tender national currency bill, when Mr. Stevens submitted a substitute for Mr. Spaulding's bill, then under consideration, the former gen- tleman, in his usual vigorous, terse and forcible manner, remarked, " The national bank scheme recommended by the Secretary (Chase) might, in ordinary times, be very useful; but while the banks are under suspension it was not easy to see how it would relieve the government. They ivonld have the circulation without interest, and at the same time tvould draw interest on the bonds, and afford no .inmedjate relief. He thought the government sliould have the heneht of the circulation of the legal tender notes." Those and other equally cogent and patriotic arguments urged Dy Mr. Stevens in support of this great measure were evidently the result of a plain, unprejudiced and common sense view of the ob- ject, uses and principles of a paper currency, rather than of any deep knowledge of the science of money; for he, like most who spoke on the bill, did not exhibit evidence of a careful study of this complicated subject. Although Mr. Stevens' substitute was adopted, It was so like Mr. Spaulding's bill as to almost amount to a distinction without a difference. The only material change made consisted in increasing the issue of greenbacks from $100,000,000 to !t.l50,000,000, and the retirement of i!50,000,000 of treasury notes previously issued by authority of Congress. Mr. Stevens, to put the matter more clearly before Congress, observes: "If the $150,000,000 were constantly afloat it would be a loan to the gov- ernment without interest to that amount, $9,000,000 a year." He might still further have pointed his argument by adding that the scheme recommenced by the Secretary » (Chase) would just reverse the case, and give to the banks (which he, the Secretary, favored) that amount. If the President and Secretary Boutwell take these fathers of the national currency as models for their guidance, we may yet be spared the addition of $400,000,000 to our debt and over $20,000,000 a year to the national burdens proposed by such men as Senators bumner, Sherman and others, who wish to fund our greenback cur- rency and grant an equal amount of money, without interest, to the bondholders for the organization of national banks-their main argument being, as we have before stated, that the former, as "a war measure," ought to be abolished in times of peace. In other words the Union being no longer in danger, the nation can afford to make this enormous gift to the wealthy classes, and raise the means to do it by taxing the labor of the people-for all taxes come primarily from labor. But, as if to make the proposition more aggravating and conspicuous, they propose to exempt these bondholders altogether from taxation. Can those gentlemen hope "wm 'thout interest, and nds, and afford no sliould have the ! arguments urged vere evidently the e view of the ob- ther than of any e, like most who a careful study of is' substitute was almost amount to 'rial change made i-om $100,000,000 1,000 of treasury Mr. Stevens, to (bserves: " If the loan to the gov- 100 a year." He r adding that the irould just reverse cretary, favored) these fathers of e, we may yet be over $20,000,000 men as Senators r greenback cur- hout interest, to nks — their main le former, as " a leace. In other ition can afford s, and raise the Q— for all taxes the proposition to exempt these gentlemen hope 87 that such a proposition, if consummated, will go unchallenged by the country ? ° e j When the $150,000,000 bill passed the Senate manv Senators, but more especially Messrs. Fessenden and Sumner, voted for it as It were, under protest, that it was to be regarded only in the light of a financial expedient of the war. The former gentleman said, It has been defended simply and solely npon the ground that it is M «t«^Ze measure, standing by itself, and not to be repeated." ^^ Mr. Sumner was equally pronounced in his judgment, and said loe must all set our faces against any provosition like the present except as a temporary expedient, rendered necessary by the exigency of the hour." Mr. Sumner still adheres to this view, but neither then nor now has offered a single reason against the principles in- vovcd m the question of conceding to the government the solo duty and right to supply our paper money-just as it is its unques- tioned duty and right to supply the coin or metallic money. If indeed, our fathers had been stupid enough to have so framed the Constitution as to have prohibited the issue by government of paper money, statesmen should at once set to work to amend it. Will Mr Sumner, as the most prominent, able and emphatic sup- porter of a bank currency (to be "loaned to the banks without interest ), meet the case fairly and squarely as it has been pre- sented in these pages ? Let him tell us wherein the bank currency predicated on public securities is safer or better than one secured on the resources of the whole people, through the action and under the control and management of governmcat. Is there any reason arising out of the nature of things, or any argument deducible from natural reason, or from practical experience, why that which he supported in 1862, on the grounds of expediency only, is not the best for all time ? We have endeavored to demonstrate our posi- tion by close reasoning and by appealing to the results of eight years experience, and we proclaim our conviction that the judg- ment of the country, and of men of scientific culture on this ques- tion, 13 m favor of the national currency. Mr. Chase's Want of Consistency. * We cannot close our remarks on the origin of our national cur- rency without directing attention to the circumstance of the f ilf'^tW.ti ir In- 28 Secretary of the Treasury (Mr. Chase) " recommending " a financial policy entirely opposed to the principles he so clearly demonstrated as being sound and correct. That which ho proved to be best by unanswerable arguments he faintly "suggested," whilst the scheme he recommended was exactly that which he overthrew by the most powerful of reasons. We suppose this apparent inconsistency of the becretary must be set down to the account of the strong op- posing influences of the committee of bankers he had summoned to his aid. Had he studied the history of British finance he would most likely have discovered that such counselors always have a strong penchant for getting into the public purse-a liking for loans from the nation to themselves, " without interest." - ,. » , , , Prospect of Resumption. ^t We have expressed profound regrfit that a determined eflforthad not been made by Congress when the $150,000,000 currency bill was passed to get back to a specie basis. Had Congress possessed the knowledge now acquired of the abilitv of the government to control the gold market, there can hardly be a doubt that the attempt we refer to would have been made. Had it been made, and followed up by the vigorous financial policv of President Grant, its success could not have been doubtful. But this knowl- edge was slow of attainment. Indeed, its full force only became apparent on the 24th of September last, when Mr. Boutwell sent his memorable order to New York, " Sell four millions of gold." But it is aside from the object of these articles to criticise the policy that led to the issue of so large an amount as $400,000,000 of national and over $150,000,000 of bank currency, in addition to the $150,000,(100 required to take the place of the then out- standing State banks' currency. We have considered things as we have them, looking for a time not very far distant, when, by the laws of money, our currency, national and bank, will be appre- ciated to a par with specie by the increase in our industry and commerce. Those who have formed their opinions on the question of the amount needed to circulate our commodities on the ante-war standard, are ignorant of the principles of currency. Two years ago the writer expressed his reaso'.?, lurough leading journals, for believing that the extraordinary development in all branches of in- 1 ling " a financial rly demonstrated d to be best by 'hilst the Bchcme rew by the most inconsistency of )f the strong op- ad summoned to finance he would I always have a 30 — a liking for •est." mined eifort had )0 currency bill tigress possessed I government to doubt that the id it been made, y of President But this knowl- ce only became . Boutwell sent ions of gold." to criticise tho as $400,000,000 icy, in addition f the then out- ed things as we it, when, by the will be appre- r industry and on the question )n the ante-war !y. Two years ig journals, for branches of in- 29 duBtry and wealtk, would cause our too large volume of currency to steadily appreciate towards a specie value. When Congress met, in December, 1868, Senator Morton and many other members of both houses made elaborate speeches to demonstrate that no such phenomena would ever present itself. Mr. Morton declared that an irredeemable paper currency would never appreciate to par without contraction, unless the government borrowed a fab- ulous amount of gold and solemnly fixed a day when it would resume. Another class of philosophers took issue on these and other equally crude notions by declaring that " the way to resume was to resume." That is, tho government was to sell all its gold at par, when the laws of nature had fixed its market value at about 133. What the government should then have done was to have oflfered gold to all comers at its market value, which might, for the pur- pose, have been determined on monthly or quarterly averages. This would have stopped the injurious fluctuations caused by tho gold gamblers. There would then have been no necessity for the government's coming to the relief of the bears on the notable 24th of September. But the event of that day has been of great value to the country and to the science of money. It has shown how completely the government is master of the situation, and demon- strated what the writer was among the first to contend for, namely that the currency would in a few years come to par without tho distressing ordeal of contraction. He then claimed that all that was needed was to let it alone, and " hedge " against the conspira- cies of the "bulls" and the "bears." The distinction between selling gold at the value fixed oy the law of supply and demand and selling it at par, must bo obvious to every one. Under such a policy the government would never have been called on to sell of its steadily increasing supply, as the price in the open market would always have been a fraction lower, as it was in England during the bank suspension. Though gold has fallen to 113, or twenty per cent, since the autumn of 1868, when Senator Morton declared the currency would iusver appreciate to par, the Treasury has taken no steps to steady Its price and pv<>rmit the paper money to be raised by easy stages to a specie value. If it should now be carried to par by a panic f"' ! 30 it would be difficult to roflumc, because the very att would suddenly inflate the volume of poper money $44,000,000— the amount of gold certificates afloat, which would at once circulate as currency. If such an event as we refer to should happen, the only way for gov- ernment to resume and maintain specie payments, would be to fund the gold certificates promptly and suppress the fractional cur- rency. The latter would be no longer needed, as all our silver would at once come out, even before par was reached, as well as gold dollars. Mr. Hincks, the remarkable Canadian financier, who has ordered that our silver shall be current in the Dominion at 20 discount, will have his anxieties set at rest. It will come back in far less time than it took to find its way there, and leave our neighbors in distress for want of change. It is not desirable that the government should force on specie payments too rapidly. But better that than the passage of any of the measures now before Congress for funding the debt in the inter- est of the national banks or for inflating the currency. From these and all other such crude and premature measures, the nation may pray, " Good Lord, deliver us !" The time for passing a fund- ing bill has not arrived, and the currency will take care of itself if Secretary Boutwell does not throw away too much of his ammu- nition in skirmishing with the gold gamblers. Let him ask for and obtain power to sell gold to all comers at the market value, which an average of the last month would fix somewhere between its present price of 113 and 120. This would at once relieve the country from all anxiety about combinations to raise the market, and the gold-room would soon become a very tame place. The recent heavy fall in gold is due to two causes : First, the rapid ap- preciation of the public credit, caused by the excellent administra- tion of the national finances by President Grant and Secretary Boutwell ; and, secondly, to the death blow dealt to that most un- scrupulous clique, of which Gould and Fisk were the head and front, by the order to " sell four millions " on the 24th September. But little of the phenomena can be charged to the account of the natural law of supply and demand. The popular view of this question, as between the national cur- rency and the bank currency, as is often the case, coincides with the strict deductions of science and with the clear teachings of 1 t would suddenly e amount of gold 08 currency. If nly way for gov- its, would be to le fractional cur- 8 all our silver ftchcd, as well as ladian financier, in the Dominion it. It will come there, and leave I force on specie assagc of any of Icbt in the inter- urrency. From ures, the nation r passing a fund- CO care of itself ;h of his ammn- -.et him ask for e market value, swhere between mce relieve the ise the market, me place. The t, the rapid ap- lent administra- and Secretary ) that most un- the head and 1th September, account of the 31 history. Let the President and his earnest Finance Minister devote themselves to tiic public interest, and the nation will certainly sus- tain their policy in opposition to that thus far developed by Con- gress in favor of the monopoly of capital. If the matter cannot be otherwise settled at present, let there bo a truce, and let the two kinds of currency continue to circulate until the finances admit of buying up the bank circulation, dollar for dollar, and thus for- ever set at rest a matter of the highest importance to the nation. A sound and uniform currency, under able and experienced man- agement, will do more to add stability to our institutions and pro- mote the interests of labor than any other consideration or measure now engaging the attention of Congress. If all legislation on financial matters can be postponed, even for a single year, members will be better informed, and will come back to the consideration of the various subjects better qualified to deal with them. In conclusion, we venture to predict, that if Congress will only permit the President and his able Secretary of the Treasury to pursue the policy they have adopted for strengthening the public credit, for two years longer, a bill may then be passed to fund all the interest-bearing debt in one class of bonds, or national stock, bearing not to exceed four per cent, interest. The income tax, in some modified form, should be renewed. It is the most equitable method of raising revenue that can be devised, and it is the mo',t popvlar, nohvithstandiny the cry raised by certain journals in the interest of the rich, who ought to contribute, out of the accumulations of labor, too often seized by grasping avarice from the sons and daughters of toil. Being both just and popular, let this tax be renewed— at any rate until all our debt can be funded at four per cent. e national cur- coincides with r teachings of BBjw w w w a wim w / 9' y W