I suggest this rate of interest because it
would bring currency at par with gold at the date fixed by law for final
resumption. I suggest 10 per cent as the demand premium at the beginning
because I believe this rate would insure the retention of silver in the
country for change.
The provisions of the third section of the act will prevent combinations
being made to exhaust the Treasury of coin.
With such a law it is presumable that no gold would be called for not
required for legitimate business purposes. When large amounts of coin
should be drawn from the Treasury, correspondingly large amounts of
currency would be withdrawn from circulation, thus causing a sufficient
stringency in currency to stop the outward flow of coin.
The advantages of a currency of a fixed known value would also be
reached. In my opinion, by the enactment of such a law business and
industries would revive and the beginning of prosperity on a firm basis
would be reached.
Other means of increasing revenue than those suggested should probably
be devised, and also other legislation.
In fact, to carry out the first section of the act another mint becomes
a necessity. With the present facilities for coinage, it would take a
period probably beyond that fixed by law for final specie resumption to
coin the silver necessary to transact the business of the country.
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