, 1866-02-07


In 1eGG opposed to maintaining the Industrial
independence of our country Is about the
same relatively. as opposed tho obtaining Of
political and Industrial independence 10 1776,
and with few exceptions, arc men Of similar
PATRIOTISM. PROJECTION.
1IR. $. $. HAYEs's REPORT.
IsIs Argument for Reducing the Gold
Dollar 10 stxty-Elkht Cent?.
In order 10 settle this question, we must be
acquainted With the pecrnlary condition Of
the country, the prospect OF any change IN 1t,
and Il any, what and especially tho manner
in which It is affected By existing taxation.
And first, 1t must be borne in mind that busi-
ness Is now and for some years past has been
carried on and debts contracted under the
operation Of acts Of Congress, mailing the
.unconveTtible notes Of the government legal
part and the interest and principal Of an:
: other part Of the bonds Of the United
States. These notes arc receivable for all
public dues except customs, and, with bank
notes Of tho same value, compose the curren-
cy Of the country. What Is to become Of this
agnin established. How will its value COM
pare with the yaluc Of the present curreucys
Nhnt will become Of the debts now payable
in lawful money These are questions Of the
utmost import tauce. And rs It Is known TINT
the policy OF the Government aud or Con-
gress Is not yet settled, all the light possible
Should be thrown upon them. The views Of
the writer Of this report were presented IN q
letter to the Secretary of the Treasury, Of
New. :, 1865, which, However, did not meet
his personal observation until some time In
December He safds
my which, go far as know, have yet been
nude pIbllc, and the subject is Of such vital
consequence, involving the welfare ot millions,
and the preservation or destruction of the
prosperity Of onr people, take the liberty Of
stating them to you u condensed fer.l.. -
tive OF many evils and dangers. Fluctuation
in values and the apprehension Of further
depreciation arc necessary Incidents, aud reck-
less speculation on the one hand, md the dis
couragement Of 1alr Investments ana enter
prises on tbs other, are its certain conse1uen.
ces. Hence great imitation of prices, y
as the manufacturer and business man mnst
-I,argn not orly fair profit on his investment.
but sum IN addition, to pay for the risk Of
future loss, from new change In the value Of
| moGitles are measured
All judlcious men, therefore, agree that a
sI cedy return to metulllc t,nsiA Ia greatly to
hc desired. Yet nearly all dread the shock
and the commercial ruin which are supposed
TO be Inevitable upon that event."
|
ono plan for tho resumption OF specie pay
mcnts has yet been suggested, plan, the OPP
Grafton OF which will certainly be attended
by these deP1orablo results. That plan Is to
require the redemption Of all our currency
| und the payment OF all debts In coin, OF the
standard ID use before the war, or its equiya-
lent, without discount or abatement
II 1t can be shown that there Is another
| plan, possessing all tho advantages of the
llrst, attended with none Of It's dangers and
disasters, and more Just and right IN itself, a
| great good Will have been done.
ga simple statement will relieve the sub
jcct of the confusion in which It Is involved,
and carry Us long way toward the truth.
We are without specie standard, yet We
have standard or measurable Government
my, If its value could be maintained without
change. That dollar Is worth to-day Us cents
In specie. The amount Of lega{-tender paper
IN circulation Is 9tfss;, 1p9,5 Estimating tho
circulation Of the national and other banks at
s::GG, ,oa90, ,419, the nominal amount Of our cur
sEcc1e ttSt, ,000, 900. This currency Is the
standard by which al e1ehangeable COM
mot,itics and commercial and other debts are
measured. Leaving ont OF view other prop
erty, the anount existing at this time
in the shape OF indebtedness from pri'
iesa than 5000, 900, 900. Indebtedness is q
necessary incident to commerce and produc'
tion. When It ceases TO exist the people Ol
this country will have ceased 10 do business.
Commodities cannot circulate, production on
great scale caunot continue, without the
free circulation OF capital aud credits. TAX
Ing the amount OF this Indebtedness In III
Infinite variety Of shapes nt the above cstl
mate OF &, 600 00O, 600, In currency, It's specit
value is i, 0,O00, coo. Add to this, for Other
liabilities Of the Government, payable tn cur
rency, With or without Interest, 81, 500, ,ooo, ,o3o
total Of fixed and floating Indebtedness o
s5.500, ,0Oo, ,000, worth in coin a. 7i0, ,00o, 900.
"Eow, 1t Is proposed to fix the value ol
thls Indebtedness by requiring its payment,
convertible, in gold and silver Oh demand.
The question arises, how much gold or silve
shall be fixed by the Government as IN equiv
nlcnt for each dollar Of the amount. Shal
] each dollar Of that Indebtedness or Of tha
currency be required by law to be paid will
Of use, and IL worth % an'aktlcle Of mcrchau
: disc premium OF 46H cents over the lega
dollar In uses OF shall another mode of equa
tion be rcsorted to! What Is that othe
: modes 1t is simply to provide for the re
cenpt.op of 6s cents worth OF currency. or
at ali events, OF 6S cents' worth Of debt, b
the payment of IS cents worth Of coin In
stead Of Il worth, AZ has been heretofore pro
| posed !; that payment to be made either In
, less amount Of the former coin or in a ne1
| coin 10 DC auI0ulNtu. MulC4eSEI Way y
. deemed most convenient aud freest from dl
aBut, says the obJector, would you deeas
!. our coinnEe-an act pronounced dishonorabl
!, by the enlightened public opinion Of moder
: times! I ans~er-no. would do no Sue
: thing, However, let US first settle tho mean
i Ing Of the phrase, 'debase our coinage
"To 1ebase the coinage Of country IL 70
the Government to lessen the value Of the col
!. In nse, which Is made By law legal tende
for debts, and the medium Of exchange, b
either reducing the weight or increasing tb
. alloy without changing Its denomination
! This act involves wrong upon the credlto
: class of the community, by compelling thet
: TO receive in payment less amount In actin:
= value than was stipulated for when the det
! was created. It Is also fraud on the con
munity at large, which, trusting to the ii
r change property for the coin, at its pretent
: cd value until the deception is found on
|, This wrong has been practtsed from tim
. to time BY nearly every government in Es
+. rope. In nFrance the coin has been de6ase
: until It contains only four twenty ty-se!enths (
: | its former weight Of silver. ln Scotland Ii
pound was reduced to one-thirty-sl1th pal
u its former weight. The German 6ortu vi
;, reduced to one-sixth; the Englfsh POM
+ sterling to about one.thfTd; the Turks
, ment committed the same wrong when
:. changedthe standard from specie to pnpe
= which has not been worth on The averng
: more than two-thirds lis nominal vatu
!. wrong which possibly was uuaToidab1
Il L and Justified BY the cxigcucy. Ina
n n much as We have now no metallic currenc
's and debts cannot be collected in coin. I
metallic standard which may be adopted c.
e tlebaso the currency, unless It ehonld be
"a less value than its paper substitute at II
time Of Its adoption. Therefore, tho prop
Il sltion to provide for redemption 10 coin equ
= in value to the present value OF the cuffenc
) which currency is redeemable only In pape
N Is not proposition to debasc the coinag
The new coinage, should new coinage be 7
- sorted to, need contain no more alloy than u
- | old. It might. and should, In addition,
:, stamped With It's weight ind anencss, or n
public of its real or intrinsic value, and pied
s ing tho faith Of the Government 10 that valu
~ "To determine whether this plan be co
r ristent with justice and good taith, let us c
- - anime more closely the object Of coin, III
,e the obligation assumed by government
: :s standard OF value, secondly to facilitate G
y changes. In reference to the first, McCulto'
~ says: II is Of no consequence how coins a
It le subt1ividcd, the grind requisite being th
y, their weight aud purity should be Prescrv
y fnyiolable, md that the substitutes shonld
p p Immediately convertible into them. Direct
~ y, to alter the terms Of contracts between in
~ ~ vidnals would be too batcfaced md tyrani
x se cal to be tolerated. Tho Sane result N
N altering the standard. The Injustice
e, precisely the same In either case. By
ad change in the standard a correspond
pd amount is added to OF deducted from the del
lc- und obligations Of society. Suppose tt
u. owing to an incrcaEe In the cost Of gold a
~ silver. OF In the quantity Of bullion contain
NJ in coins Of the sa1ne denomination, the val
u. Of money is raised 10 per cent; 1t Is plain II
az this will add 10 per cent to the various 81
which one part Of society owe to anosh
c. Though the nominal rent Of the Ea1mer,
is | avuun1n rontfnnea al a* fnnarv h5s real rr,li