Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1868-12-23

overthrowing the enactment and a few per-
sons, even, are bold enough to urge Congress
to repeal the law and thus at once cut the
Gordian knot. The great majority of think
ing men, however, agree that the return to
gold as a legal tender ought to be postponed
until greenbacks and the credit of the gov
ernment can be made, by legislation or good
financial management, as good as gold. A
financial policy that would gradually, and
without any sudden and marked change in
values, make a greenback dollar equal to a
gold dollar, and a government bond worth
lis face in coin, is desired by a great MAORI
II of the people. What shall that policy
be?
Secretary McCulloch's plan is an enact
mont leGalizing gold contracts, and a law
declaring :. that after the first day of Janu-
AIRY 1879, United States notes shall cease to
be a legal tender in payment of all private
debts subsequently, contracted and that
after the first day of January 1871, they
shall cease to be a legal tender on any CON
tract or for any purpose whatever, except
government dues, for which they are now
receivable" He says, {" the law should
also authorize the conversion of these notes
(greenbacks), at the pleasure of the holders,
into bonds bearing such rate Of interest as
may bc authorized by Congress-" The
secretary also recommends such a revision
of the tariff and excise laws, and such re-
trenchmcnt in the expenses of the govern
ment, as viii leave the government with
so 900. 600 annually to apply toward the
paymen. Of the debt. The Secretary, how
ever. makes no suggestion for replacing in
any way tie greenbacks which the govern
ment may withdraw or fund, but expresses
the opinion that the circulation of national
banks might be increased after a return to
specie as a legal tender. The absence Of
this or some similar suggestion is noticeable.
If his scheme had recommended an addition
to the circulation of the national banks, under
the same restrictions as now, allowing new
banks to be organized and put in operation
as rapidly as the sreenbacks were withdrawn
" funded, the plan would be much nearer
complete. We confess, however, to a dis
ike to any repeal of the legal tender act,
that does not make ample provision for the
payment OF redemption of greenbacks in
something equivalent to gold.
Senator Morton's plan,-which just now
is prominently before the people, having
been recently explained in his speech in the
Senate-is for the government to hoard coin
in tic treasury until July 1871, and then
redeem sreenbacks in gold and to require
the banks to redeem their bills in gold after
January !, 1872. lie judges that both the
government and the banks Will by that time
be able to pay specie on all their liabilities,
and greentacks and bills be as good as gold
and he pats off the day of redemption, ar
guing that the appreciation of the value o
grecnbacks will thus be gradual, and the
return to a specie valuation of property anC
contracts Will be by such small degrees a.
not to occasion any disturbance to the bust
ness Of the country.
One objection to Senator Morton's scheme
is that the treasury would lose the interes
on the gold it was boarding until july
1871. Another and more serious objection
is that there is every reasonable expectation
tIat this locking up of millions of golc
would run up the premium on that com
moditv. causing a greater disparity between
the greenback and gold dollar than now
and thus bring about great intermediate
injury to the business of the country. b.
thus boarding the gold the debt of the gov
eminent would also be increased,-as 1t ha
been increased nearly forty millions the pas
year in spite of the sales of gold-and tn
credit of the government would suffer anC
its expenses be multiplied by this increase o
its debt and consequent depreciation of it
credit. 1t seems to us, moreover. that Sen
ator Morton's scheme, like Secretary Nc
Cull0ch's, is obnoxious to the criticism tina
it attempts to restore the credit of the gov
eminent and bring about a return Of speci
valuations, 1oifhout proridinJ the mans 0
2 d0inq it. Ia other words, it is like an en-
c barrassed debtor endeavoring to make hi:
paper as good as specie, not by commencing
at once to pay his debts, or by providin
means adequate for their payment, but b
{ promising to do in a year or two years, wha
liz ndo hON AZ Nui " III anu W ia
iulging the future by the past, he will be i
no better situation to do two years hencr
: than he has been for the last two years.
n There is one indispensable preliminary
q a repeal in any way by the government
the legal tender act, and tn is we think is
d withdrawal of the g~reenbacks, or a paymer
or offer of payment by the government
S. gold, dollar for dollar, for its legal tend.
IN notes. When the government can do thi
and carry it into effect. what we call spec
n payment will come of itself and any repe;
lie of legal tenders which does mt offer gold f
d greenbacks will be reputation, and will NJ
bring about specie payments. While tt
a. government refuses to withdraw it's gree
G. backs or redeem them in coin, the banks m
} the people cannot resume specie payments.
a. But the government does Mt need to re
I'd deem all its greenbacks in gold and it do
ne not need to offer to do so,-in fact, cam
I'd safely offer to do so while the prese
n volume of legal tender is aflsat. 1t CT
Or withdraw legal tenders, however. and canC
G. them, whenever its revenues arc in excess
ne its disbursements, thus diminishing the VI
to u1ne of greenbacks and this it can do
~ lust the extent of the excess of its incol
r over its expenses ,-doing only what a
be prudent business man does who uses
a accommodations to pay his accrued indebt'
S, ness. In order to do this, the excise a
=. tariff laws must be revised so as to incrca
he the revenues, thus repairing the wretch