The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-03-19


cur system of paper money. Confidence
will never be firmly established until our
\ currency is regulated by maintaining its re-
demption in specie.
Among the many plans for reaching this
end, the Two following, which are directly OPP
poslte TO each other, have been proposed and
are now before Congress. One to retlfe ali
tue Chlted States notes from circulation, sup
plyiuS their place by the notes of the national
banks; the other to obliqe the national
DanEs TO withdraw their notes from circula-
non and to supply their place By United
States notes.
Let us examine these MEASURES and see
what wou'd be their practical operation
Under the first plan, il adopted, the United
States greenbaclls would be gradually retired
and all finally Withdrawn from circulation
their place being supplied by the notes OF the
national banks, which would then be the sole
circulating medium OF the country, and would
amount to about seven hundred million dol
lars. The government having returned TO
specie payments would require the banks to
redee a in specie. Could they do it? Would
they be so firmly established in public conf
| dence as to maintain such a circulation re-
deemable in coin? There is no probability,
scarcely possibility, that such would be the
case. What would be the result? The law
| which created them says they must redeem in
Lawful money, which would then be gold and
| silver only. But higher law-tbat of neces-
| sity-compels them to refuse. 1t would then
be the duty OF the Comptroller of the Curren-
| cy TO close them up under the currency act;
but tins course would deprive the country OF
a currency, and cause wide spread bankruptcy
| and commercial ruin. Would not this un-
ayoidable suspension be legalized, as has al
| ways been the case in like circumstances, un-
der the State bank system and specie pay
ments be thus indefinitely postponed?
By the other plan the government would
compel the banks to Withdraw their circula-
| ton, supplying its place with an equal amount
! OF 9reenDacks, and thus giving an exclusive
| government circulation of about seven hun
| dred million dollars In its attempt TO re-
sumo and maintain specie payments on this
| large amount OF paper the government would
have no support rom what is now the nation
| al banking interest, which SO largely repre-
| sents the capital OF the country and is the
| great creditor OF the nation. On the contrary,
this interest would be able at any time to
present SO large an amount OF greenbacks for
| redemption as TO compel the treasury to Sus-
| pend. Not only would it haze the power
thus to compel the government to suspend
| specie payments, but such a course might Of
| ten be favorable to its interest. Under such
| circumstances Wall street could ON any day
drive the government to suspension.
Both these plans lead from, and not TO-
| ward, specie resumption. The one proposes to
double the amount ofpaper currency now is
sued by the banks, and at the same time to
| WITHDRAW the United States notes, the only
medium for the redemption of this bank pa
| per, substituting nothing in their stead. The
| other proposes TO uproot our whol3 banking
| system, interviewer, as it Is, with all the bust
ness interests of the country, and to array
this great financial interest in hostility to the
| government at time when union, harmony
and an identity OF interest are of the most vi
| tai Importance
am decidedly opposed to both these plans
| We are in no conultion to make rash expert
ments. The measures OF finance now to be
adopted, to be successful, must notdeclare nor
lead to war by the government against the
banks OF the country, nor to placing the
banks in antagonism to the United States
Treasury. Neither should they be such as to
| iasten upon the country as its only currency
| an issue OF bank paper which must, form the
| nature OF the case, continue irredeemable for
| an indefinite time.
With the present mixed circulation let us
| see how the resumption of specie payments
could be resumed and maintained. This cir
eulation is nearly equally divided between
the banks and government, the government
notes underly ing the Whole. Let the govern
ment adopt a policy which shall gradually
bring its currency to par value with gold,
completing this work by an actual redemption
OF its paper money in coin; let the banks be
allowed TO redeem their notes in this govern
ment paper, approaching and at length made
equal in value OF gold. The banks holding as
reserve more than one halt the United
States legal-tender notes would have no mo-
tive Tor presenting this amount for redemp-
ton. as the notes would answer their wants
as well as gold Their interest would be to
sustain the credit of the government paper,
which would then be the basis OF their own
circulation fn fha ernv aAf
in its efforts to sustain the specie payments.
-, -, II u oirrIlnStances . IHere anIlld be no
run upon the United States Treasury fbaf
would exhaust or even weaken its power OF
payment, and the inevitable resrllt " oIh he
that not only the United States noue-, LII al
SO all the other authorized currency of the
country, would be brought to par value
with gold.
Mr.. Speaker, in order TO resume and main
| tain specie payments it is necessary to COM
bine and bind by one common bond ofunion
all the great financial interests of the coun-
try, uniting them IN support OF the govern
ment, which must lead the way in resulnp-
ton. To this end, believe the present
double circulation OF the government arc the
| banks shouldbe continued and the experience
will confirm and establish this continuance
as a part of our settled financial policy. With
a view to the attainment of these objects, at
| the commencement oil the present session 1
| ferred TO the committee on Banking and Cur
| rency. | here introduce them, with some
amendments, which l intend to propose,
should they come up for action, and to them
| now desire to call the attention OF the
| House:
| A bill to provide against undue expansions
and contractions of the currency.
| Be IL enacted By the Senate and House Of
| Representatives, of the United States Of AHleri-
| ca in Congress assembled, That the Secretary
of the Treasury be, and is hereby, authorized
and directed to issue United StaIes coupon
| bonds to an amount not exceeding $500 600 ,O00
| of such denominations, not less than S100 or
| the multiple of 800, as the Secretary shall
prescribe, payable in lawful money, on de-
| mand, bearing interest at the rate of four per
cent. per annum, payable quarter yearly IN
| lawful money and subject to State, municipal
and local taxation; SAID bonds to be issued to
| any person paying therefor the par value
thereof in lawful money at the Treasury of
the United States at any time twenty years
after their first issue and not earlier, except at
the. option OF the holder, as hereinafter pro-
| vided, and at the expiration of said twenty
years shall be paid in coin.
| Sec. 2. And be M Further enacted, That the
| bonds issued under the provisions of this act
| shall be signed by the First Second Comp
troller or the Register of the Treasury and coun-
terSigned by such othe" officer officers of the
| Treasury as the Secretary of the Treasury may
designate, and shall be issued under the seal
of the Treasury Department. The interest
l coupons may be signed by such person or per-
| sons or executed in such manner, as may be
| designated by the Secretary of the Treasury.
SEC. 8. And be 1t further enacted, That the
| Secretary of the Treasury shall take up said
bonds whenever presented for that purpose at
the Treasury of 10 United States, paying
therefor, in lawful money, the par value there
| of and The accrued interest thereon, to the
| amount of any matured and unpaid COUPON
| thereto attached; and the bonds so taken up
| may be reissued in manner provided for their
| first issue, the interest which may have ac-
| erued on any coupon thereto attached, at the
time of said reissue, being paid by the pur-
1 chaser in addition TO the par value of the
| bonds; and said bonds may continue to be
| issued as before at any time or times during
| the period of ten years, after which they shall
| not be again ressued.
| A bill to provide for the gradual resumption
| OF specie payments
| Be it enacted by the Senate and House of Rep
| reSeRtatiUes of the United States of Anler7ca IN
| Congress assembled, hat on and after the 1st
| day OF May, 1868, the United States notes now
| outstanding shall, when received in the course
/ of ordinary transactions at the Treasury of
| the United States, be destroyed under the di-
| reeton of the Secretary OF the Treasury, and
| in lieu thereof the Secretary of the Treasury
| is hereby authorized and directed to issue
| United States notes of the same denomina.
| tions as those in lieu of which they are issued
| payable in coin, on demand, at the Treasury
| of the United States, at and after one year
| from date; and all notes of national banks so
received at the Treasury shall under such reg
| ulatious as the Secretary shall prescribe, De