Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1864-03-31
FINANCIAL VIEWS.

Means In the House of Representatives during
the last Congress, has just addressed letter to
banker in the city of New York, on what he
considers one of The principal causes Of the pre-
sent fluctuations in the price Of gold. After re-
ferring to the laws Of Congress passed in 1877 and
1887 fixing the standard Of value in the gold coin
age Of the country, he proceeds to say:
The original legal tender note bill introduced by me
a. necessary war measure and which approved by
the President February 25h 1852 changed the standard
OF value, not with the world at large but within the Uni
ted States BY authorizing the Secretary of the Treasury
to issue $3.50 900 Of Uoed Sates notes to circulate
as currency making them lawful money and legal tender
for ali debts public and private, and providing for their
redemption ut all mes at the Treasury Department in
6vetw1nty six per cent bonds-interest payable semi
annually in COIN and further authorizing the issue Of
900 OF these bonds for that purpose This was
not the ssue Of rredeemAbe paper currency There
fixed standard and Of value for the redemp
Of all these legal tender notes they be ssued
reissuod from time time That standard five twenty
SIX per cent bonds principal and interest payable in gold
Every person who should receive these notes voluntarily
or by compulson, knew exactly what he c0dd do with
he should have gold bearing bonds for all the notes taken
by him. The redemption in this not gold on
as formerly but six per cent ntsrs 10 gold every
months, and the principal payable gold within twenty
years This the standard Of value fixed by the legal
tender note BILL 1t was n effect forced loan from the
people to the Government but at a rate Of interest for
both the lender ard the borrower.
This radical change in the standard or measure
Of value within the United States but it fired stand
ard established BY a, and every business could act
upon it, and shape all his contracts and business tansac
tons accordingly.
"Ths act Of July H. 1862 authorized further issue
Of $3.50 of legal tender notes. and required their
the 20 six per cent bonds still leaving the standard of
value OF legal tender notes by providing for their
sion at any time into per cent United states bonds,
principal and interest payable 10 gold Although this
in eff nnnf from fha and
equitable 10 its terms the peril of the country great
and the object to be attained in crushing the rebeOp
Important that loyal citizen could object to it, There
very great danger that the currency would become
excessively inflated 80 long every holding green
backs not bearing interest could exchange them ut his
own will into bonds at six per cent interest
per annum. The Government was carried smoothly
and the war prosecuted vigorously under this system
to January 81 1864 when the $40 six per cent bonds
authorised BY the act of the 5th Of February 1862
exhausted"
In the mean time the standard of value for the
redemption Of legaltender Treasury notes, as our
readers are aware, was changed. The act of the
Sd Of March, 1868, to furnish ways and means for
the support Of the Government, commonly called
the 5000, 100000 loao bill, so modified the legal
tender note bill to leave it in the discretion Of
the Secretary Of the Treasury to fix the time and
manner of issuing the bonds or notes and the rate
of interest they should bear under the act. As
Mr.. SpauldiDg recites, it gives him the power to
issue them at six per cent, five per cent, even
at lower rate Of interest if he deems it advisable
but, under the notifications of the act, there Is no
longer any standard Of valSe fired BY lao. 1t
rests with the Secretary to say, from time to time,
what the rates Of interest shall be- He also has
the power to issue and reissue legal-tender notes
on demand and on time in sufficient volume to
hoat five per cent, and even four per cent bonds
and notes, if he shall deem it advisable to do SO
and it is in this fact that Mr.. Spaudirg finds an.
explanation Of the present advance of the price Of
gold and of other commodities. No man, he says,
can regulate his contracts or business affairs with
any certainty. No person, when he takes legal
tender Treasury notes, can fix in bis own mind
what is their real value. 1t is no longer converti-
BILE at the will of the holder into United States six
per cent. bonds nor is there any provision in the
law which compes the Government to redeem
them in my kind Of bonds, or in any other way
except for dues to the Government 1t has, how
ever, been the practice of the Treasury Depart
ment during the last two months to redeem legal
VonoeA AASuiy nosooj noe ucnlinB Wy GA
changing for them one and two years Treasury
notes, bearing five per cent. Interest, both principal
and interest payable in currency.
| 1t is in virtue Of these considerations that Mr.
Spaulding cnforces on Congress the Iropriety Of
establishing the standard value of legal-tendcr
notes by fixing the rate of interest at which they
may at any time be converted into the funded debt
Of the United'States, principal and interest pay
able in gold. He thinGs it will be cheaper in the
end, and that specie pIyments can be resumed al
an earlier day, if the Government to continue
the conversion of legal-tender notes into six per
cent. bonds, because gold will bo lower nd prices
but, whatever the rate Of interest is to be, he
deems it of the first necessity tt at the rate sAall
be fixed in the law il elf, SO that all business men
may be able 10 shape their contr vets and bust ess
10 accordance with the public law establishing
such standard of value.
There is undoubtedly some force in these views,
though they perhaps do not extend quite as far as
Mr.. Spaulding suPoses, whether considered as
indicating the source Of our present financial de-
preston or as suggesting its remedy But, rs far
as they are just, they will, we sure, engage the
attention of the present enlightened Secretary of
/ Al Il