The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1868-05-01

policy pursued and the hilaSy OF the ueoiy "" "N''
that policy was based viz; that currency would appreci'
ate in value in the ratio Of its reduction in quantity in
proof Of which he give, the following figures;
On the ,,d Of March, 1850, the day on
which the loin bill authorizing contrae-
/ ton At the rate OF four millions per
| mouth passed this House, the public
On the first day OF April 1867, u was.. a,SaS<sSo7o
Il Reduction Of the debt. ........... siss,siS,+to
1 On the ,,d OF March, IS6b. the interest on
| the debt, when reduced 10 currency,
amounted to- ................s...''.' So9siS+)o
On the first day OF April, 1867. itamount.
ed to. ...."............" ,o.o,sI.
An increase Of the annual interest or $500
A reduction Of the debt Of siSsoooooo and an IN
crease Of the annual inerSs, Of more than hall million
| Of dollars
On the ,,d Of March, 800. the premium on gold was
AZ per cent On the ,Id Of March, 1897 Il was IS per
Ssns an psra and an increase Of over hall million
dollars To be paid in annual interest
lie next attacks the plea for contraction based on the
assumption that the in circulation is in excess Of
the demands of business and shows by comparison that
the premium on gold has sometimes been higher when
the amount OF circulation small than when il
larger and that the larger circulation, with the increased
value indicated by reduced premium gold, found fun
and profitable employment in the channels Of trade. This
part Of the speech is worthy OF the attention be.
cause the faCy against which il is directed is very
prevalent haer further showing the effects Of a
scarcity Of money in eur,ang industrial operations and
making eSceen, point against the assumption that il
benefits the aborer by essenng the expenses Of living,
he devotes space to argument against the mme
date reduction Of the national debt and then says:
but, sir while do not believe in the wisdom Of the
present payment of any part OF the principal Of the pub
lie debt, and opposed to the contraction Of the cur.
! hstlha nj hlnr
sumption Of specie payments, in any way tending to
improve the condition Of our finances, do not, there
fore underestimate the value to our currency to our II.
nances in general to every business interest OF the
Try, ot return tn specie payments This sir, believe,
Is the first step To be ken the first question To be set
tied Settle this question: and all Others settle them,
selves. Settle IT, and the question To whether
bonds payable in greenbacks in specie becomes i'm
material Settle it, and our bonds, approaching with
currency will stand At premium in gold in the markets
OF the world We then raise long loan at lower
rates OF interest the with which retire the Five.
twenty bonds Our bonds have been and will continue
10 be- measured by standard, which is
rency. Place that upon gold basis ami bonds viii
follow. Can expect tn negotiate long loan onAyor-
able terms, while make no provision tor the rcdemp-
ton OF demand notes, and while propositions ac'
tualy before Congress To buy them ia at discount To
make the attempt would be like merchant, with abund.
ant means TO meet all his obligations allowing his notes
to remain under protest. and then, with his credit i'm.
paired by his neglect, tn attempt tn negotiate loan
Sir in my view. is OF the first importance that the
rency OF the country shall, as practicablc be
placed upon specie basis That is the only ioun.
daon Cr our system Of paper money. Confidence will
never be firmly established until cur currency is regulated
| by maintaining its redemption.
After considering some OF the financial plans which
have been proposed in Congress- Mr. Lynch proceeds to
present his own which aims at the accomplishment Of
two dstnc, but closely related objects Thehrst Of these
is to regulate the supply of currency rather provide
system which shall by its operation constantly adj
Just the supply to the increased or diminished demands
Of trade. To effect this he proposes bill providing for
the issue Of coupon bonds to the amount OF three hun
dred million dollars, Of denominations Of sroo and multi
pies Of .ioo. payable demand in lawful money at the
Treasury Of the United States, with interest," quarter
yearly the rate OF four per cent also in lawful money
These bonds be issued to any person applying for
them at the Treasury Of the United States upon paying
for the same their par value and the accrued interest
thereon in United States notes. and the holder Of the
bonds may re-exchange them at his option receiving or
them the par value and accrued interest to the amount Of
any overdue and unpaid coupon By this means, when
ever the amount Of currency exceeds the requirements oil
business the excess need not be idle and unproducNe
but can be invested in these bonds and draw rate OF in
,eres which, considering the nature Of the security and
the heily for conversion, would be sufficiently remuner
alive Indeed il can scarcely be said that there IS sur
illus Of money when the OF interest private loans
rules higher than 1--WE, at the most, six per cent and
depreciation cScurs under such conditions II Is atrbuta
bic to lack Of confidence in the character OF the eircu
la,ins medium rather than to OF its quantity
This arrangement recognizes equitable principle, via
tina, loan Oh which no interest Is paid should only be Is
sued tn the extent desired by those who take it. Ever,
man who holds lesaltendcr note makes free loan To
the Government to the OF It's yaue but 50 long
he hos no more Of such notes than he requires in his
business he suStains no loss and the rule arpe'
to the community considered ~ siSSe, But Il there Is
more than is required this bill provides for converting
the free loan into an bearing loan at once to the
full extent IL the excess or there be no doubt that
the amount 81 these bonds to be issued would he sui
Glen, margin To cover the fluctuations In the demands
trade II We are to have Government circulation, some
such scheme as this emnently adapted to secure
the requisite degree Of elasticity in the currency. and
the rate Of interest were fixed at the right figure there
would be M complaint as to its equity.
The second part Of Mr. Lyneh's plan is presented in
the form Of "a bill to provide for the gradual resumption
of specie payment" which provides that from and after
the frs, day Of March, 1885, all United States egal,en'
der notes shall when received into the Treasury OF the
United States p the ordinary course Of business, be de-
s,royed and that all the circulating notes OF the national
hanks so received shall be redeemed by the banks issuing
the sau,c in United States notes which notes shall also
- .,,,.., an, !, len ,he,.of ,h,,. .h,,l he issued
's'>'' w " -
ahke amount OF new United states notes payable ON de'
m,nd in coin a, the Treasury Of the United States aer
/ . -, IT,, J,,. =, ;s.,. ,h,, IN. man, NOTE. sh,, n.
"e s'A' "'" "' =" " w
legal tender G the redemption by the banks Of their cir
ro,., anil lr all o,he, rurr,ses excep fr the
payment Of duties imports before maturity and the in
,e-cst ON the public debt where such niere, is payable
| :, Ar, It, N , H. l,i ,,., D., Al,
| !" Wv" "'' "''' ' NV " "s' N''.' |.'' '
United States after maturity but may be rescued as The
NJ s,; IN <ueh os The rube creditor, ,s may
| WV
elect 10 receive he'n'
Mr. Lynch computes That the amount of greenb1Cks
DESTROYED and consequently the amount Of gold notes Is
sued ,i,er this bill would be about fifteen millions per
c,,h during the frs, year Of its o;,sra,ic, and eonse
o,srv the demand urop The Treasury s,r spece would
90, s,e,,a sncs, millions per month during The ,soord