The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-12-19

| that these bonds were generally taken
upon the supposition that they would be
paid in coin; and that this was expressly
declared by the authorized agents Of the
Government in negotiating the loan, and
that such declaration must have been
known by Congress and was not negatived
and that it was sanctioned by three sue.
cessive secretaries Of the Treasury-tha,
| upon the faith Of it the bonds have been
continually higher in market value than
the notes, and that a public sentiment
both in this country and in Europe would
regard it as breach Of public faith. Public
credit is so sensitive quality that time
cannot restore it when impaired. It is
better far to forget a doubtful privilege i,
IN the Judgment of impartial men we have
no right to exercise it. But the doubt
should be promptly removed. The dis
cussion of the question manifestly impairs
the public credit. Until it is settled no
new loan can be negotiated. The public
NINA becomes accustomed to the idea OF
reputation, and the widest schemes OF
paper money, worthy of the days of George
Law, poison the fountain of public and
private credit.
II mas, the committee say, been proposed
oy Congress, by joint resolution, to declare
that the five-twenty bonds are redeemable
only IN gold. This, instead of settling the
question, will only create divisions and
parties, and the resolution, when passed.
VIII be subject to agitation and repeal.
These considerations induce the com
mttee, without deciding upon the ques-
ton, to propose substitution of new
bonds, clear and explicit in their terms,
tor the five-twenty bonds as they become
redeemable. This exchange must depend
upon the voluntary consent of the holder,
but 1t is believed that the great body of
them will readily make the exchange, and
that the Government will be able to sell
the new bonds at q rate that will redeem
or purchase an equal amount of the five
twenty bonds. II is the manifest interest
Of the bondholders, as well as of the tax
payer, to have his rights clearly defined,
and that Congress, after full consideration,
should so settle them that they will not be
affected by any uncertainty as to the man
ner Of their payment. If this exchange is
refused by the bondholder it will be time
enough to determine whether, by the con-
dition of the bond, he may not be paid in
lawful money.
The plan proposed establishes the maxi
mum Of currency at the amount fixed by
law, and may be diminished by payment
for taxes and its conversion into bonds.
These processes would, it is believed +,
rapidly restore our currency to the stand
ard of gold, without the severe disturb
ance and uncertainty caused by the pre-
sent system. When the restored credit Of
~ h.
value Of the bonds to the gold standard
specie payments may be resumed and
maintained. This plan is in accordance
with the uniform practice of our Govern
ment prior to July /, 1903, and of Great
Britain during the long period Of the sus-
pension Of specie payments from 1877 to
1928.
The holder of the paper money paid out
was allowed at any time to convert 1t into
bond or annuity. The note forced upon
the people during the suspension Of specie
payments was never allowed to be Of less
value than other securities held by public
creditors.
The committee are of the opinion that
the time is not distant when it will be-
come the duty of Congress to repeal so
much Of existing laws as make the United
States notes legal tender in payment of
debts, either public or private. This pro-
vision was adopted with extreme reluct-
ance, and under the pressure Of over
whelming necessity.
The committee, having stated their views
upon the different propositions of the bill,
add that they do not consider this measure
as embracing all the financial measures
demanded by the public interest, but they
present it in the hope that it may not be
embarrassed by other financial problems
now exciting general discussion.