The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-12-08
Mr.. Lynch's Resumption Bill.


Representative John Lynch of Maine pro-
poses two measures designed to effect a return
to specie payments, upon which we are asked
to express our views.
The first consists OF an act entitled "To
provide against undue expansions and oontrac-
tOns of the currency, and proposes to issue
$500, GOO, 600 of new coupon bonds, payable in
currency on demand, with interest, also in
currency, at per cent. per annum, payable
quarterly, and subject to State, municipal,
and local taxation, issuable for par in cur
rency, reissuable by the Secretary Of the
Treasury at any time within ten years If re-
ceived by him, and to be redeemed at the end
Of twenty years in coin. This provides for a
loan which, being payable principal and inte-
rest in currency, and subject to local taxa
tion, we Judge would be worth, while Five
tweDties are at 78, say so cents on the dollar
in gold. No possible relation exists between
the provisions of this act and the functions
ascribed TO it in its title, viz, "to provide
against expansions and contractions of the
currency" Congress might pass this act, and
on the very next day another for any amount
of additional currency. 1t might with equal
proprery have been entitled San act to
prevent the tides from rising on Sunday"
The second measure is entitled "a bill to
provide for the gradual resumption of specie
payments" 1t provides that, after a given
date, say May l, 1869 the Government shall
destroy all United States notes "when received
in the course of ordinary transactions" 1. e.,
for revenue, sales of lands, settlements OF
accounts, etc., and in lieu thereof issue new
United States notes of like denominations to
those destroyed, payable after one year, in
coin, on demand; all National Bank Notes re-
ceived by the Treasury shall be redeemed by
their banks in 'greenbacks," and the latter
destroyed in like manner. As no provision is
made for selling these notes, it is assumed that
they are to be paid out in the ordinary eX-
penses OF the Government for salaries, con-
tracts, the war and navy service, etc. Mr..
Lynch estimates that, as the Treasury receives
and pays out in current expenses say $50, 0O0,-
GOO year, or at the rate of $lj 600 900 per
month, his plan would cause this entire sum
in enc year to be changed from greenbacks
into notes payable in one year in con. These
new notes would be paid out at the rate OF
SIS, 600, 600 month during the first year, and
would fall due at the same rate during the
second year of the working of the plan.
We co not wish to discourage any feature
of value in this bill, but We suggest the lol-
lowing queries:-
l. Would not the payment of the members
of Congress, officers, contractors, clerks, SOL
diers, sailors, and other benefciaries of the
Government, in notes due in coin in one
year. while the producers and taxpayers are
still using the old National Bank note and
addition of about twenty per cent. to the pay
of all Federal officers and would not the new
notes to be issued under this act bear pre-
MUM of about twenty per cent. over the
ramaining currency of the country
ii. So long as they bear a premium, would
they not like gold, be boarded for payment
in gold and would not 30 great reduction
in the volume of the currency as the abstrac-
tion of $lS0,000, coo year by the Govern
ment, without any outflow of currency hav-
ing the same value as the National Bank
notes, the old legal tenders, and the general
'money of account" in use in business, oc-
casion such a stIipgency of the money mar
ket as would compel the abandonment Of the
plsnH
III. Would the people submit to, or be bene-
flied by, plan which adds twenty per cent.
gold value TO the expense of the Government
and the salaries of its officers, while it tight
ems the money market with tremendous force
on the merchants, manufacturers, and business
community
". Would not the new notes be a fancy
stock for politicians instead of a currency for
the people
V. Would it be feasible 20 require the ma
tionsl banks or the people to redeem their
| debts in these new notes, when there is nc
| provision by which they may get them, unless
they are employed by the Government
| vi. Can specie payments be resumed by
any measures which do not enable the people
and the banks TO resume?
There may be points in Mr.. Lynch's plar
which, in combination with others of which it
makes no mention, would do we'll enough.
But it is very incomplete, and OF itself would
nk Il