Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-01-08
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In addition to the United States notes,
there were also outstanding S32, $50, 900
Ave per cent. treasury notes, of which it
would. doubtless, be safe to estimate that
$50, 900, 900 were in circulation as cur-
rency.
From this statement it appears that,
without including seven aud three-tenth
notes, many of the small denominations Of
which were in circulation as money, and
all Of which tend in some measure to swell
the initiation. tho paper money Of the
country amounted, on the 3lst of October,
to the sum Of 704,2ls,0 3S 20, which has
been daily increased by the notes since
furnished TO the National Banks, and is
likely to be still further increased by those
TO which they are entitled. until the
amount authorized by law ($300, 000, o00)
shall have been reached, subject to such
reductions as may be made by the with
drawal Of the notes Of the State Banks.
In the course of his argument for a con-
traction Of paper currency, the Secretary
says:
An irredeemable paper currency may
be II necessity, but it can scarcely fail, if
long continued, to be a calamity to any
people. Gold and silver are the only
proper measure Of value. They have been
made so by the tact. agreement of nations,
and are the necessary regulator Of trade.
the medium BY which balances are set
tied between different countries and be-
tween sections Of the same country. AS a
universal measure of value they are u
commercial necessity. The trade between
differen, nations and between sections Of
the same country is carried on by an ex-
change Of commodities, but is never
equally balanced BY them, and unless
credits are being established, the move
ments OF coin unerringly indicate on which
side the balance exists.
There is no fact more manifest than that
the plethora Of paper money is not only
undermining the morals Of the people by
encouraging waste and extravaganza, but
is striking at the 100 of our material
prosperity by diminishing labor. The
evil is not at present beyond the contiol OF
legislation. but il il daily increasing, and,
if not speedily checked, will at nc distant
day eliminate in widespread disaster.
The remedy, and the only remedy within
the control Of Congress, is. IN the opinion
of the Secretary, to be found in the re-
duction Of the currency.
Naming the Legal Tender Acts War
Measures" the Secretary says:
The present legal tender Acts were war
measures, and while the repeal Of those
provisions which made the United States
notes lawful money is now recommended,
the Secretary is Of opinion that they ought
not to remain in force one day longer than
shall be necessary TO enable the people to
prepare for a return TO the constitutional
currency. 1t is not supposed that it was
the intention of Congress, BY these Acts,
TO introduce a standard Of value, in times
Of peace, lower than the coin standard,
much less to perpetuate the discredit which
must attach to q great nation which dis
honors its W obligations by unnecces-
sarily keeping in circulation An irredeem-
able paper currency. 1t has not, in past
times. been regarded as the province OF
Congress TO furnish the people directly
with money in any form. Their authority
is to coin money and fix the value there
Of" and inasmuch as a mixed currency,
consisting OF paper and specie, has been
found to be a commercial necessity, it
would seem also to be their duty to pro-
vide, as has been done by the National
Currency Act, that this paper currency
should be secured beyond any reasonable
contingency. To go beyond this, how
aya, anl ix.,a GoyarnpNanf OhlfOafiOna
making them by statute a legal tender for
all debts, public and private, is not be-
lieved to be, under ordinary circumstan-
ces, within the scope Of their duties or
constitutional powers.
II will be noticed that the Secretary
advises a gradual but "persis,ent" system
of retiring the legal tender notes:
The issue of United States as lawful
money was a measure expedient. doubtless,
and necessary in the great emergency in
which it was adopted but this emergency
no longer exists, and however desirable
may the saving of interest, and however
satisfactory these notes may be as a circu-
lating medium, these considerations will
not. il is respectfully submitted, justify u
departure from that strict construction OF
the Constitution given to it previous TO
the wal BY patriotic men Of all parties,
and which is essential TO the equal and
harmonious working of our peculiar insti-
tutions.
While, therefore, the Secretary is Of the
opinion that the immediate repeal OF the
legal tender provisions of the Acts referred
to would be unwise. as being likely to
affect injuriously the legitimate business
Of the country, upon the prosperity Of
which depend the welfare of the people
and the revenues which are necessary for
the maintenance Of the national credit.
and unjust TO the holders Of the notes, he
is of the opinion that not only these pro-
visions but the Acts also should be re-
garded ~ only temporary, and that the
work of retiring the notes which have
been issued under them should be COM
menced without delay. and carefully and
persistently continued until all are retired.
The Secretary makes estimates for the
extinquishmen. Of the National debt in
about thirty years:
The annual interest upon 49, 0o, 000.-
900, if funded az 81 per cent. per annum,
would be Sl65, 000, 900. but il funded at S
per cent. it would be $3.50, 000, 900.
Now, if 5000, 900, 900 should be ap-
Piled, in half yearly installments Of $780,
900. 900 each, in payment Of the accruing
interest and in reduction of the principal
funded at the higher rate Of 81 per cent,
the deb, would be entirely paid in 81 l.S
years. A. S per cent. per annum it would
be ~extinguised by the like application OF
800, 900, 900 every six months, in little
over twenty eight years.
AT the higher rate. the sum applied in
the frs, year in reduction Of the principal
of the debt would be S35, O00, 900; in the
last or thirty-second year, when the in
terest would be diminished to a little over
$4,000, 900, about Sl9l, 900. 900 of the
uniform annual payment would go to the
reduction Of the principal. r..a'