The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-04

cfAAtH& ~1M nt&tfn~ Va" tiAH@ $500 - - ""
broug Id about nnl 60 f0Fnsr hal tate accomplished
~, ssl ssss. ~ ss =. ss.s y - s,
turn % iss 'rss mss.sls = ssss ha~sVsr as.rssls
Of such measures q. m al prevent faaAisg art iJw-
ousy srsci thaae bfahc1es y inaasary ftom whAea
mss, ~ sreng ssara pTsriel.ass ths asssssr shlcS
81 many anticipates Ene sarsd Ttus 80 ecnfloo n
the eostisy ara .ts irssssfy eesssrissa shs Ielsy
bearing notes, temporary isans a.. irsc soa1 bear
ms bonds and - eoasrses Tue psfer ercastoa W ths
years tots policy has besn steadily bas cafWgaiy tuf
sued aud the fesasi ugon ths wha~ been
ier y q I ne ssege ses ne s,ss ~. Il ~
1854 tho temporary loans fhe ceFtEraiss e 11tbacs
ness and TIE tvs pcs esnt noiss have al bcsn paii
scented for rsy msDi the cepoaDA ssreat no&ss have
been reduced from t9ls,c2sioe 70 s7i s1aeso
esrnaosss; Tie even ana serss sssss N nsss frsm
<sJ0OoOV0o 10 t8asBTe 500. the nl "a F1mew No1sa
, .ss1 l5ae.ss ssssss fssa ssss 20 81. =
Increased from Sos2ls,o5s to slS9 ses Ss4 aua the
funded deb has bssa increased ssss ssssa Hkhs
cia crisis and side OF tho ssatheta states whioh
are SIN greatly s0nerns from tho sascss - AID
tho unsettled state 81 sner industrial Asa 20
ica affairs no considerable hnsnesa eaharrssssnrnf
In his last report is remarked thai AFTER
careful survey Of The vhos Cad he ~ss q ne cpln
Ion that specie pAymenis ns "a be rsamea Aaa ouGat
TO DO resumed early Inc nfst asy VI JAY is6s
while be INDUCED the hope thai such would be tns
character OF future es salDn. aud the Of
our productive industry that ths moa dssrahls
might be brought about siill earlier day" Tbess
zed Tie grain erops d ise ssfs bsrsy sas 90, ias
home consumption. The expenses of The War Depart
ment OF military governments In tho Ssaahsrn saztes
have greatly exceeded tue es;iustos Tbs aascrnmeEt
has been dofisuded o. large ar Of The revenue upoa
been DISTURBED and unsatisfactory These facts and tho
apprehension created Europe. and 20 extent Al
lie men upon .hs subjects o. ansnes ana
taxation, that the pubic faith mig1t not
sS.c % :. ned may POSTPONE me Gs ssss
Ing these unexpected embarfssnents mach preliminary
work has bsen done, ana there nh 10 tho opinion u
the Secretary, nsupeFaoie dicuify 10 the Of
early aud permanent restoration the specie stand
ard II may be safe TO nx the exact time, bat, via
favorable crops year and with esslsion unia
yorabs at this session. u oasht not 70 be
delayed beyond The LIST Of January nj the lartnas the
LIST Of July. 1902 Nohns val, be gained, hc~evsr. BY
. forced resumption. When the counsry n condi.
tion TO maintain specie they will be ored
as necessary consequence To such condition NJ na
tiona prosperity as will nsure permanent restoration
OF the specie standard Tho foowing are, IN
tue opinion OF the secretary, important NOT indis-
Firt-The funding or payment OF the balance Of In
terest bearing notes. aud continued contraction Of tho
Second-Ibe maintenance or the public faith In regard
to the funded debt.
Tird-Ihe restoration Of tho Southern States 20 their
proper relations 10 the federal government.
II this opinion BIO correct the question Of permanent
specie payments, involving doee the prosperity Of
the country underes lhe great questions OF currency.
taxation and reconstruction which engaging the
attention OF the people, and cannot fail 70 receive the
earnest and deliberate attention OF Congress In view
or the paramount importance this great question the
Secretary deems 70 be Lis duty briefly TO discuss tho
measures regarded by him to be necessary for an carly
and wise disposition OF il even ~ the risk OF repet.
ton OF what he has said In previous communications 10
Congress.
Indispensable for national prosperity spd, .
sequence, for permanent Resumption, are;-
Fra-fhe funding or payment 0f the balance OF In.
terest bearing notes. and continued contraction Of tho
paper currency.
BY the act Il March q 1867 the Secretary was aaihor-
lied and directed to issue three per cent loan cerf
Gates to the amount Of 500 900 000 for the purpose OF
and retiring compound interest nolcs: and
such certificates, on the Isl instant Ind been issued 10
the amount OF 1850 000 redemption o. the notes
becoming due in octyb and December The notes sti
outstanding will be either taken up with certificates
paid at maturity The and three-ienths notes,
beng payable In lawful money or convertible At tho
paid converted according the terms the con-
tract Fortunately, all the interest bearing roes TO
be paid or converted within eleven months and they
need not therefore be regarded serious impeachment
10 return TO the true standard OF value AS TO tho
demptou of these notes. aud the manner in which they
difference Of opinion IL il In regard to crnTacton Of
the currency and upon which Of the kinds Of
Characterization should be brought to bear, thai
difference OF sentiment seems to exist.
In his report to Congress- under date OF the 9TH OF
December 1855, the Secretary presented fully and
ssarIy no was sbo 10 do his views upon tho sub
pu pose II bringing about Ieturn specie payments
The views tbus presented by him approved by the
House OF Representatives on the Sih of December,
1865 by adoption OF the following resolution by
decisive vote OF 144 to g.
Resolved Tha. this House cordially the
Of conractos Of the currency, with lew 70 az early
he count,y Win permit aud we hereby pledge
action to this end as speedily as practicable.
Among the views thus emphatically endorsed were
the following
The right Congress- at all times, to borrow money and
to for loans in suca form be cpnvs-
tons for circulating medium as money and 70 make these
Of The people duty maintain government
Necessary % &c done present legal tender wsrs
winch made he United States notes lawful money il not
now me sesrstrs i Of opinion sa they
be the people for return 70 the
urged in favor OF United
n sn e pees and .as
u @ 70 sae pocy are mat the pager eren
sing ACCORDING @ he requirements Of lcsaie busI.
as s Se h s ~ e ps
Or tue iuees q parties rather than the demands OF CON-
rrncy wauld e greatly o. rublio economy and
power whoa isn, IL under strong temptation 10 use Tor
other PURPOSES than The public ,ng the qaesson
question than which few things would be injurious
whe therefore Secretary OF the opinion that the
mmeda,e repeal Of the LEGAL tender previsons q the ac.s
"
ousy the business o. tbs country, the pros
pery which depend the welfare OF the people and the
which for the OF the
credit aud unjust 10 the holders Of thu he IL
OF opinion not provisions but the
also should he regarded as only temporary and that the
work retiring the notes Which have been Issued under
them should be menced without delay, and carefully
and persistently continued until all are retired.
The rapidty with which the government notes can be
withdrawn will depend the ability Of the secretary 70
dispose securities. The influences Of funding upon the
money viii suc emily prevent their TOO rapid with
drawal The Secretary, however, believes that decided
towards contraction Of the currency not only
public necessity, but that VIII speedily disspse the ap,
policy necessarily be TO make money scarce and
TO diminish The prosperity OF the country II y well r.
established which has escaped the attention OF all
Intelligent Observers that The demand for money increases
by advance OF pricesl with the supply, and
demspd IL not unfrequeny most pressing when
tie volume OF currency the argcs and imitation has
aple article 70 hold little Is withheld from active USE
and to its prices advance; on the
other hand reduction Of reduces prcea and ~ prices
reduced tue demand Tor falls or 40 that paradoxcal
may seer dminution Of tho currency may in facs
increase the supply OF Il.
Nor need there be apprehension thar REDUCTION Of
the curIenry--uncss violent one-wiu In iui ousy