Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1867-12-18


It is well to remember that at the time when the
irstbatch Of legal tender notes were proposed,
the right to issue them disputed by some OF
the oldest and ahlest statesmen in this body, and
the authority relied upon and prominently brought
forward in the other House 90 support the right
Of such an issue was that il war measure.
The several States being expressly forbidden 10
make ANYTHING but gold and silver legal tender,
and the Constitution nowhere authorizing the gen
eral government to do that which was forbidden
to the States. it was conceded that by implication,
at least the power to issue paper rs legal tender
denounced in all countries rs an uumihgated
scourge-had been wisely and Intentionally with
held. IL was in great emergency, perhaps JUS
tifably exercised a civil right brought into use
when necessary to the full power OF making war.
Peace has now returned although a qualified
peace. and II must be admitted, even while we in
hert all the legaces of the war, that whatever vir
tue there might be in the original argument as
war measure, it no longer has force and should be
mustered OUT Of service. Certainly it will not
cover an increased issue Of paper money and can
only be decently made to cover an honorable re-
treat or the retirement a: the first reasonable OPP
porunty Of what still "lags superiluous on the
stage The war powers OF the Constitution, how
ever priceless in war. should not be called forth
upon weak and insufficient occasions or in time Of
peace,
The Government is no longer swelling the bust
ness Of the country by spending SSO0,OOO, 600 per
annum an eager purchaser in all markets, but is
reduced to a mere seller of the old blankets. blue
oyercoats and old Junk left by the war, and does
not require banking facilities seven fold greater
than those furnished by the old United States
Bank
do not propose to retire the legal tender is
sues now, and never with mcrciless rigor regard
less Of the vast interests involved, but let them be
raised to par and then be retired when no longer
useful quietly but surely TO the end IL may be
bafn hall Ia of
per money. but if we can make and keep il equal
in value 10 gold and silver It's greatest evil will
have been overcome Give the country the am
pie notice contained in this bill and its practical
operation will be followed by mo disaster, but ratli-
or by great good to all the business interests Of
the country.
The first section Of the bill proposes to fix some
time when the lega-tender notes may bc presented
10 the Treasury TO be paid In actual cash II is
important to fix by positive law some day when
the grccnback currency shall be- made equal TO
coin. 1t is the uncertainty shrouding this point
which creates the great disparity between paper
and coin. Such an act would inspire much Of
confidence that from The day OF its passage the
inequality now existing between lega-tender notes
and coin would gradually diminish, and by the
time fixed for fedcmption-pro hcfore-it
would disappear and coin would be worth no more
than legal-tenders.
This time is placed (July4 1862 so far ahead
to give ample notice by which such preparation
can BE- made as will secure the country rom any
panic or commercial disaster. Merchants and
business men would behold the meies and bounds,
and could have that forecast over future transact
ions which is essential to all healthy trade. in
fact, the general stagnation in trade which now
prevails almost throughout The world has wrought
such depression in prices that a return TO the
specie standard would not bring much if any fur
ther reduction in values Tue time is most OPP
perfume, therefore, for the Inauguration OF the
policy. ! do not propose or expect at once to re-
tire any considerable amount of the legal-tcnder
currency that is now, perhaps, not necessary
but do propose to increase its value 10 par.
When that is done, if there is too much currency
aflsat, the excess will be very easily absorbed in
the funded debt Of the United States
There may be tmidity in some quarters lest the
Government should fail in the attempt proposed.
| do not admit that it would not be best to try,
even though complete success should not be abso-
lutcly free from doubt; but there need not be the
slightest apprehension about the success OF any
we-considered plan Of resumption. Our most
vulnerable point would be the foreign exchanges,
and this point was never more strongly fortified
The wants of the Treasury compel to maintain
a high revenue tariff and will so continue TO do
for some years. This alone powerfully tends to
check over-tradng. The demand for gold TO pay
for the foreign cost of merchandise obviously can
not be excessive while such state Of things exists
and it will grow less day by day the time arrives
Wntn paper ana COIN hDhll ne Drought upon the
same level. Importers could not fail to see that
merchandise imported with gold even at very
small premium must be sold at a loss compared
with that imported when gold and paper money
should be on perfect equality. We have also a
million and half of stalwart men Just released
from war and restored to the industrial employ
ments of life, besides large number of foreign
immigrants constantly arriving. These will so in
crease American products that there will be less
need of purchasing the products of foreign labor.
There is, then, no danger that imports will be
swelled to that extent likely TO turn exchanges
against US. On the other hand our exports have
been rarely in a more promising condition by
the report Of the Bureau Of Statistics | See that
our exports for the four months preceding August
81, 1867, in currency value, were $40 72S, j64
or at the rate OF Si37 lS5.092 per amum En-
braced in this amount there will be found the fol-
lowing articles -
Coal oils, S6.747. 33f Naval stores, ,537 100;
Breadstuffs, l4,7ls,s24; Cotton, 81, s57,l47 To-
bacco, 15,754,579; Wood and lumber and manu-
features OF wood, Apps, l25; Provisions and tai
low II, 1S7 926.
These are sources which will not dry up, and
some OF them must be largely augmented Bread
stuiis are but lust harvested and the demand in
France and England has not been great for
years. The high prices there will be likely to
draw from all we can spare-twice the amount
for which foreign market is usually found, or as
much as fifty millions. Our cotton crop will be
larger this year than last, and but a small portion
OF it has yet been shipped Moreover later ship
ments will be likely TO bring higher prices as the
entire shipments Of East India cotton to Great
Britain in 1866 were 6l5 500, 240 pounds, while
they fall off to 2Sl, 95l 1000 pounds in the first
nine months of 1867. The shipments for the sea-
from India are nearly over, having been rushed
forward rapidly to secure the high prices but
those from the United States have only Just com
menced. | see no reason why our general exports
may not for the year to come exceed our imports
by a considerable balance. 1t would certainly
seem to be safe to calculate that exchange will not
be turned against us on account of liqudating any
Indebtedness for balance of foreign trade. II
this be so, from what other quarter can the ex-
changes be adversely Affected The interest on
that portion Of our debt due abroad will have TO
be paid. And here, fortunately, the products of
our gold aud silver mines promise TO be inexhaust-
ible 1t is not high estimate TO set down the
future annual product at Sl0O,000,O00 OF this
can and do easily part with one-haIf, or $780,
600, 900, which is much more Than enough to pay
the interest that is likely to be due abroad
on United States debts. But the doubtermay still
ask may not something happen to send our secu-
rites home and food cur markets. 1t is not
likely that making securities better will induce
foreigners to part with them. They are not held
by spectators The Rothschilds and the Barings
only buy American securities to supply their Gus
4. a IL