The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-09

sonable rates, for moving the crops and conducting
snch an unsettled condition Of the curren cy, gam
Dung Is active while enterprise hats, trade stag
to the nturef II NOT not That snc
as ~ recommended VIII cure the financial evils
Which now aict the country; but WIN Pc pea de de-
rotary INDUCES the hope that it will receive the early
and favorable consideration of Congress.
Tie legal tender acts were war measures. By
reference TO the debates upon their passage it will
be perceived that, by oil who advocated them, they
were expected to be temporary only. 1t was feared
that rredeemable government notes. In the unfortu-
nate condition OF the country, could only be saved
tender--the great fact not being sufficiently con-
sIdered that by possessing this character their de-
quised. Hence it was declared that they should be
law1ul money and q legal tender in payment of all
except duties on imports and interest on the p"bic
debt" They were issued in an emergency, for which
Il then ,s seemed that no other provision could be
| only by the condition OF the country and they
were 50 recognized by Congress ana the people. by
| no meinDer O congress ana by no public journal
was the issue OF these notes rs lawful money advo-
Gated on any ether ground than that OF necessity;
and the question arises, should they not now. Or
at an early day. be Invested OF the character which
was conferred upon them in condition OF the
country SO different from the presently The
Secretary believes that they should, and he
therefore recommends, in addition the enactment
by which contracts for the payment of coin can be
enforced, that ii be declared that after the rst day OF
January, eighteen hundred and seventy, United
o notes a saa cease to be legal tender in pay
| and that after the first day OF January elrbteen
hundred and seventy-one. they shall cease to be
| legal tender on any contract for any purpose
| Whatever except government dues, for which they
are now receivable. The law should also authorize
the conversion OF these notes. at the pleasure OF the
holders, into bonds bearing such rate OFF interest as
may be authorized by Congress on the debt into
! which the present outstanding bonds may be funded.
| The period for which they would continue to be
legal tender would be sufficient to enable the people
change and the privilege or their conversion would
save them from depreciation What has been said
nclous effects upon business ana the public morals
OF nconvertlble legal tender notes. aud what said
IN ihls report upon the advantages which would re-
suit IRON egalzing coiu contracts, sustaini this
| communication IL may not he improper, however. to
suggest another reason for divesting these notes
OF their legal tender character by legislative action.
Although the decisions OF the courts have been gene
rally favorable to tho consttutonaty OF the acts by
which they were authorized grave doubts are enter
tai ed by many OF the ablest lawyers OF the country
to the correctness OF these decisions and t Is to
| be borne in mind that they have not yet been sus-
| tanned by the Supreme Court OF the United States
The illustrious lawyer and statesman whose Ian
guage upon the subject OF irreGcemabe paper money
has been quoted. in the Senate OF the United States
on the Dist day OF December 1885, expressed the fol
lowing Gpinion-
try under the authority Of this or any Other but
ana y %n
PRINCIPLE perfectly plain aud q the very highest importance
soS and sssr sss lender
as has granted n this but
70 coin money and L. regulate the value Of foreign coins
payment discharge Of con-
anshes has coined and & coins u.
1ss the :sr
| overthrow 1t would shake the whole system
1t is by no means certain tnat the supreme Court
VIII differ from Mr. Webster upon this question, and
no one can fan 10 perceive how important 1t is that
| the legislation recommended should precede de-
| cison from which there can he no appeal that
United states notes are not under the federal con-
| stitutton a legal tender.
The receipts from customs for the last three years
have been rs follows:--
For the fiscal year ending June So 1862 s179 o4665l
For the fiscal year ending June 30, 1857. I76417 $40
For the fiscal year ending June so, 1868. 164 500
While Il appears from these figures that the GUS
year 1885 nave been, in revenue point Of view,
trely satisfactory, the question naturally arises
what do these large receipts, under high tariff In
dictate ~ regard to our foreign trade aud TO our
IL Is Impossible to ascertain with precision the
amount Of our securities held in Europe nor Is
there any perfectly reliable data for ascertaining
evcn what amount has gone there annually since
the first bonds issued for the prosecution OF the
late war In his report Of 1855 the Secretary estl-
ferent kinds, including railroad and other stock,
held in Europe. az 5000 600 900. He amer be.
| came satisfied that this estimate was too low by
nom one hundred 10 one hundred and NIFTY Millions
Would be sars % put the amount 90 held at the
which not less than 5000, 100000 United States
bonds nearly all OF which have left the United States
within the last six years The amount Is formida-
bic and little satisfaction is derived from the con-
sideraon that these securities have been transferred
III payment or interest and for foreign commodities
and just as little from the consideration that proba
by not over sJOO00o,00O IN gold values have been
received for these oSo Of debt Ia this es5
other stocks are not Included. as they are not
debt but the evidence merely OF the ownership OF
| property in the United States. Fortunately, for
some years past, individual credits have been cur
tailed and our foreign and domestic trade, in this
particular has not been unsatisfactory. In addition
them TO the stocks referred TO and the individual in
debedness, Of the amount OF which accurate es-
innate can made, Europe holds not less than
$500 OF American Securities, nearly all or
which interest aud on the greater part OF which In
revenue systems and with deprecated paper cur
rency ~ The increase OF our foreign DEBT likely TO be
plus Of agricultural products Of all descriptions,
United States bonds are still creating, 10 small
balances are being adjusted. We are even now In.
creasing our debt 10 Europe Mt the rate OF SEQ
or $I0oUOo 900 per annum in the form OF goldbearing
bonds
The gold and SILVER product OF California and the
Territories, SINCE 1878, has been UPWARDS OF
$1,000 100000. Allowing that 300 0oo0 600 have been
| used IN manufactures and that the coin
Ia the counsry has been increased to
| mense suns /, loo, 900, O00-has gone to other
countries IN exchange for their productions Within
| tural products and 10 our manufactures which have
been exported IN large quantities, we have parted
nevertheless, confronted with foreign debt OF some
$3.50 100000. which IS steadily Increasing and all
framed with the view OF projecting American
against foreign manufacturers. But this y not all.
During the recent war most or our vessels engage
In the foreign trade were either destroyed by repe
\ cruisers or transferred TO foreigners. Our exports
az well as our imports are now chiefly In foreign bot
toms. The carry ing trade between the United States
and Europe IL almost literally IN the hands OF Euro
peans. Were II not for the remnant OF ships still
employed In The China trade, and the stand we are
| making by the establishment OF line OF steamers
on the Pacific, the coastwise trade, which retained
by the exclusion ~ foreign competition would seem
ID he about I'll that can. under existing legislation
| be- relied upon for the employment OF American
shipping.
There are many intelligent persons who entertain
the opinion thar the country has been benefited by
tue transfer oil our bonds to Europe on the ground
that capital has been received IN exchange for them
which has been profiiaby employed In the develop.
ment OF our national resources; and that II matters
little whether the interest upon the debt IL received
| bv our own people or by the people uf other coun-
tries. This opinion IL the result Of misrepresentation