Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-12-14
'r1ycnty-filth Consress---Sd Sess

REPORT OF THE SECRETARY OF THE
SURY.-[CoKcLupED.
VII oy THE KIND CURRENCY RECEIVED FOR THE
PUBLIC DUES, THE RESUMPTION OF SPECIE PAY
MENTs BY THE BANKS
The two circulars annexed contain all the instructions
which have been issued by this department concerning
the currency receivable for public dues, since the pas
sage OF the resolution OF Congress on that SUBJECT IN
MAY last and the act Of July D, ISIS. Previously The
notes Of specie paying hanks well as specie anu rca
snrv notes were permitted to be taken Tor duties but
only the last for lands great part OF the actual
receipts however for both duties and lands was in spe
Gle and Treasury notes Since these instructions were
given more than half Of the receipts for duties has con
sisted Of of specie paying banks Most OF those
for lands continue TO be as before.
The kind Of currency that should be tnken for the
public dues has heretofore been fully discussed by this
Department. and the views then presented remain un-
changed il is not proposed, this time, 10 enlarge
any former suggestions
But what currency it is the most proper 10 encourage
for private as well public purposes, is topic init
maely connected with the recent resumption OF specie
payments
But these matters have of late had highly important
bearing on financial operations; and the striking
contrast between the state OF the country IN lS4 and
It's condition in 1897 recovering from the
OF specie payments which occurred in those years fur
nishes instructive lesson the subjects before men
toned, justify and require few details in connec
tinn with them
At the former period there ONLY about Ia millions
OF specie in The States whether in banks in active
circulation This sum would average but two dollars
to each individual Of our population at that time Small
bills receivable in almost every State, and by the
General Government. Such being the amount OF spe
Gle and the condition of the currency the Government
felt compelled to acquesce in the iDpolc, as well
unjust p.ion Of deprecated paper OF all kinds for
public dues; and the suspension OF specie payments, al
ways calamilnus, however short, pro,roctsd
" three years II then terminated only by great
personal sacrifices, by numerous nsOlyences, aud. as
many have supposed, by the operation of new Nag
tonal Bank which its friends established under the be-
lie OF utility IL not necessity, 10 effect the accom-
plishment Of that object.
But in 1887, the condition Of the currency had become
materially changed. There about ~ millions OF
specie the country equal to So per head o! our popu'
lation, or more than double the former average.
1, had been thus increased principally, by the firm and
peIseyering policy Of The General Government, during
the last our years. discourage the use o small notes.
and introduce gold more extensively into The currency
In this state of things the public officers al once de-
clined TO violate the laws and countenance partialy
among Debtors by receiving deprecated paper and that
OF very different values, for public dues Without he
station they also refused Justly to abandon the specie
standard of value either as 10 payments or receipts and
hence sustained throughout both that standard and The
uniformity in inposis, so wisely established by The
Constitution.
This step tended strongly TO encourage resumption
Of specie payments and in Of it, and Of
other asules about be explained The suspension
though general than The former one ceased
in places within less than year. and has already
ended in most parts of the Union without any aid
from the dangerous and overshadowing influence Of
National Bank. The essential difference in the
which the public officers able TO pursue, us To
the kind OF money received aud the earlier period and
greater Of resuming specie payments, bear no une
quivocal testimony TO the wisdom Of the policy which
had previously been adopted in relation 10 the improve
ment of The currency
Il is believed that about seven hundred banks and
branches situated in twenty two States and Territories
have already resumed specie payments These, includ
ing not far from thirty which never suspended, make
seven hundred aud thirty now paying specie. Seventy
more are expected 10 resume IN or before the first c
the ensuing Diunth. OF the residue, amounting 10
about twenty five, with capital OF from three ~ four
millions il IS believed that six eight winding up
their concerns, because unpr"ftabIe and that the rest
insolVent
Soon after the suspension this depai urged the
Deposte Banks TO their utmost efforts 10 resume
specie payne nts at an early day.
II was pressed that eaca, act of sound policy,
no less than Of strong moral obligation aud imperative
duty under the laws should specie payments the
,nolnrnt able safely to effect them; Or at least
that all The banks IN particular neghborhouds, cities,
counrs, and States should unite in doug this, when.
able, without waiting for weaker institutions
more embarrassed regions VI The country
The adoption OF that course IN some States. however,
much the questioned at the time and per
seperingy opposed by many banks we'll influential
individuals, has proved fortunate, and reflects great
credit the sagacity, rmness, and intelligence OF
those who adopted IT, The encouragement given by the
department, 10 such institutions resumed specie pay
ents by taking paper but theirs for public dues and
by preeirng them in The transaction of public business,
was not without saiutary influence Suits against the
banks in desult unless apparently nsolveut also
o.horne, aud diats ccn'nued with great advantage. TO
be issued gradually all that disposed to make
satisfactory arrange with the public creditors and
thus lessen those large immediate liabilities which stood
in the way OF early resumption.
indeed, every facility promised and extended,
which the limited power Of The department permitted;
and, lis rccommen dation, further of rea
sonabs indulgence 10 tie merchants and banks indeb
ed to tue Government recsiped the prompt attention Of
Congress and doubtless contributed much 10 shorten
the suspension.
Under the laws granting such indulgence the nggre
gate of merchants bonds, the payment Of which
postponed is supposed TO have reached between four
and five millions Of dollars. The chief benefit of this
measure ie in the Atlantic section OF the country,
while a similar extent Of relief experienced prnci.
psliy the West and Southwest, by the allowance 10
from them.
The curiaiiment of paper issues, which urged by
this department in 1886 indispensable 10 prevent i'm.
pending disasters and in 1897 equally indispensable
10 hr and restore specie payments has, since
their suspension, equaed at least thirty millions OF dol
lars Another striking fact is, that the curlaimcnt
rapid aud thorough in those sections Of the country
where the resumption Of specie payments FIRST took place.
and the exchanges were first squ=zed The difference
is believed to he still striking between Nav 1887
a,uJ Nav 1873 Nor has this event been accompauied
as many predicted by any ruirous fall in the prices Of
labor Of great staple commodities As further
illustration of some Of The real aud of the
embarrsssmen,s in the currency, it is computed that
within year from the suspension, reduction was ef
fec,cd in bank discounts exceeding 10 millions that there
was an increase of the whole amount Ct specie in the
county, FIVE millions; and that I'll. aggregate at this
time must he from S. to 80 millions Of dollars The cf
fetal OF the imports and exports al gold end s