The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-11-12

IN coin or currency. 4 tOlu nun -
paid in either by the express terms OF the law
but that did not know how the Secretary OF
the Treasury would treat IL. 1e tod me me
next day that he had consulted the Secretary
who said he would pay IL IN coin.
Itis but Just 10 Mr. McCuiioch nero 10 Say
that he does not pretend that tho principal OF
the five twcnties (as his late letter shows ia
p,vable in coin, rs the bonds are silent npoh
that subject. and rs that conclusion is OK
Guided nv that very silence. II Is just, also,
10 the Democratic party 10 say that when the
question has been discussed in the House, no
lawyer among them has set up such 4 foolish
pretension and when the bill was on lis Nnal
passage the question was expressly asked OF
the chairman of the Committee of Ways and
Means, and rs expressly answered by MN.
that only the interest was payable In coin.
But every instrument speaks for itself, and
when 1t is silent npon the subject OF the cur
reucy, il is always made payable In money
which means the legal tender of the country.
| shall venture 10 say that II the oniteG
States chose TO BIZ faith!ess enough, she could
tender and pay not only the principal but me
interest in legal tenders, although the latter Is
expressly contracted 10 be paid in com Inc
law of legal tender means this or IL means
nothing.
As al this leads to something very like re-
pudiation Mr.. STEvESs cautions the public
not TO be alarmed "None but Asiatics would
do such a thing He then goes into some cal
figures. For instance, ne makes it appear that
the Government loss in the us" OF paper IN
stead of gold was during the war Sl.G42,50o,-
O0V-though lie tries TO make II appear 'fl''' 'ne
Government would have saved so 1n"ch oS
using creenhacks instead OF gold oearlhS
bonds. And just here he goes out OF ms way
10 dcnouncc England and the lree-f''oe
ruocks" aud to ask if she is again 10 Dr.
tourht thai cotton. "crippled, hump bacNeu'
:. oroo,,. ehou,dered rs she is, is still TO be
..ting :. And he enters into IN argument III
favor of IN export duty on cotton, anu enuea-
,o-s 20 ,,rove that this duty would come out
&c ,,o ror;r;s Of the foreigners. He will
hardly succeed in convincing any colloh
nIon,cr. cotton factor, or other business man,
of The truth of this theory, which Is based
mon the assumption that other countries can
not or will not produce cotton rs good rs ours
At q cost of two or three times that 1T which
il is produced by us Returning from this di-
erosion, 2Ir. STEVENS says
Various methods are suggested to redeem
the five twentieS in currency. One very able
writer suggests 4 loan in greenbacks TO
their amount, so that afterwards the green
backs may be redeemed with the others.
If we are satisfied that there is not more
than Il sufficient currency to do the bust
ness of the country together with its probable
increase, then that would be the proper
method, without initiating prices rs counter
balance TO the saving. But if ii is believed
;lat the present and prospective business of
The country would fairly absorb IN amount
large enough TO redeem these bonds as they
become due, and not in nriously increase the
business, then the true way would be for the
Government 10 issue legal tenders equal 10
the amount 10 be redeemed, and thus save the
interest both of the old and new loan.
Indeed, but Il small portion might be issued
monthly, say Si,coO,UOO, so as 10 lmperceptibly
affect the currency.
The business men here complain that the
retiring OF 81, 600, 900 month withCslt any sub
stitute causes Il stringcncy Ill the money mar
ket very injurious 10 business operations. !
doubt not that that additional issue would III
some WAY be taken up in the course of busi-
ness without being in urious!y felt rs an eN-
panson. l may here state that 90 not see
WHY nearly 500, 100000 in coin has been con
stantly lying Idle in the treasury, when IL
might have paid 1T least twice that amount oil
the national debt. do not attribute any I'M
due motives 10 the Secretary OF the Treasury,
whom | believe 10 BE- Il very honest man. But
| think ne errs Ho" specie payment Is to be
resumed within the time spoken OF by the De-
par,mcnt / cannot conjecture. Before the
banks can be expected 10 resume, the Govern
mcnt must resume the payment OF legal tend
ers Whatmeans has IL of raising T51O, ooo,0 600,
and besides paying its ordinary expenses III
thereby adding one hundred and fifty or two
hundred millions more, thus requiring three
quarters of u billion? The Interest upon
The public loan, about sl23, ooo. 600, added
to The ordinary and foreign expenses
Of the Government, about $500, 1000
make an aggregate Of F323, 100000, which
must first be paid i'll coin. OF that sum sl2o,-
900 900 would be paid in coin from foreign inn
purtatious and with the then contracted bIl-
siness Of the country, about 4 like sum by in
ierual taxes, making III all $40, 0GO,00O, which,
taken from the aggregate OF interest ana eX-
nrnscs, leaves Il bal"nce OF So3oOO,0CO. 50 II
viii bc seen that the coin revenue raised by
the ordinary means OF the Government will
bc insufficient 10 meet what is required 10 be
paid in coin before resumption IS toiched-the
difference being .e.,UUu,uJO. BuLlf All the Sod-
bnIriug bonds were out of the way, the lega!
tenders would undoubtedly be absorbed loa
very large amour! by other equivalents which
the G. oyernmrut couid furnish, and which the
holders would be willing TO receive; but the
process would be Il slow one, and any attempt
10 hasten IL would be ruinous TO the Business
men of the community. My notion, therefore,
is that the sooner the Government converts all
its indebtedness into II paper currency which
the people viii be willing 10 accept II 4 long
loan and 10 Il considerable amount, the sooner
il will bc able TO resume specie payment.
observe that respectable New York papers
have for the last year or TWO charged me with
wishing 10 delay the resumption OF specie pay
mcut. This is wholly false. | have been
lender eXciusi vely. not because il is any better
as a token of debt, but because it has been
adopted by most of the other civilized nations.
Bll do not wish 10 resume by breaking the
bones of every manufacturer, mechanic, ana
agriculturiSt for the benefit of foreign ope-
rItors who have now their fixed capital. |
think that even the 81 900 900 4 month which
the Treasurer is retiring Will be found quite
rs Stringent rs thry can endure. L aulllt
that such restriction might bcueiicially cramp
,,,r.t Oh for
they now are introduced beyond III" means OF
payment. To my mind. that is Il recommended.
uon instead OF an objection TO resumption;
but il would be IN objection 10 many who
think that coin alone should be used in the
business of the country.
1t has been said that the present national
banking system, instead of being 4 loss TO The
Government, has been large gain, because,
IN addition 10 the amount of money paid TO
the National Government by individuals, the
banks also have contributed their taxes. l.
has been said also THAT the establishment of
national banks contributed 10 the sale of
bonds. Now, DO not suppose that one sane
man in America believes this. Those bonds
We're taken with IN aTidlty never before
known in Il national loan. True, il required
agents and promises, us do all efforts of the
Kind But point out the man who had any
money 10 lend. and, preterring interest TO its
lying idle ever refused 10 entruSt this Govern
ment with il on account Of the security, and
then ! will admit that they assisted in the sale
of the bonds. The banks We're established 10
absorb the bonds already held rather than the
bonds purchased TO establish the banks But
why would they help 10 sell bonds of the Go
verrment and certificates of loan bearing six
per cent unless those kinds of securities We're
worth less than six per cent. interest? If
they were worth less, who made up the diff
ference? But il is said that, besides the banks
paying taxes, the capital itself pays some
taxes in The hands Of the holders. If these
banks had not erected vaults for the protec-
ton of This wrong, where would il have been
hidden away TO escape taxation? Could it
nave been put in any other form less likely 10
NJ trrtrd . l'hpy lnlIsi leGncl those and |