New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-27
THE NATIONAL FINANCES.
MIR. LYNCHs RESUMPTION PLAN.

currency upon a specie basis. Some contend that we
ton, but that by proper adjustment OF the tal ana
rigid economy IN the admnlsTat9R OF rns m
desired result be thus brought about IN aHe season ana
subject OF contracts Tor lutuIe p1y as wo as a M
dunn Of exchange and contracts Tor the future cannot Dc
atng and uncertain value. Mr. Lynch here states that
OF the debt $4,000 are 50 funded that We have INC
option pay IL within three years, and In order 70 fund
this at lower rate Of interest, and TO do ibis we
must improve our credit the depreciation o.
currency. He argues that II our currency were
brought 70 par our p1hks ~Iu o oroydeS for by
resumption, at total Of S53S7 $50 our present means
ts5cO27e or about 70 per cent our demand liabilities
He discusses the remedies proposed as; OohI
Tenders at discount which shall diminish per cent per
month until buy them at par tMaiOot PI1J An
enactment by Congress that specle sha DO re-
sumed by the Government at some 1xed day IN the In
on the part Of the National banks and by repeal Of the
LAgalTender act, resumption to be provided Tor by re-
tanning the Treasury all the surplus of coin after pay
ing the interest the public debt and by compelling the
banks retain the specie received as interest on her
ME- Mr.. Lynch. proceeds to argue tia! the contrao.
that to repeal the LegalTender act would compel
Individual debtors to pay their den a, IN gU1 or
and that the third Gen. Garfed's plan would fan be;
cause Government cannot by act OF Congress control
the price OF gold After comphmentng Senator MOTIONS
And this brings me 10 the bill before the Does
1t possess the necessary elements Of success Let us e
anime ITS provisions. They are FrS!-To destroy all
ury in the ordinary transactions and to issue
ike amount Of United States notes redeemable IN com
on demand and after year from the date OF ISSUE
See0nd-To cause al national bankn9tes received az tHo
United States legatender notes when legaender notes
shall in like manner be destroyed, and coin notes paya,
the currency issued after July l. 1852 from the
year from the date Of issue in coin. IhirdTo make
these notes leRatender for the redemption OF national
banknotes and all other purposes for which United
legal tender. Further, as matter
of subordinate detail 1t is provided that the secretary
into the Treasury before maturity instead OF reisung
them. issue an equal amount Of new notes payable luz
discretion after the maturity OF the notes FIRST Issued
issue notes In exchange for the present United
states notes at less time than year. hut not on less
time than three months. Tho Secretary is also author
Tedempon Of the coin notes after maturity, TO purchase
coin 70 the amount Of s500OOOo To state more in detail
ets BY the conversion Of the outstanding United States
notes into notes payable in coin Ia one year rom date 81
as the currency disbursements Of the treasury
TSed states iesaitender notes received into the Treas
ury OF the United States in the ordinary course OF bpsi
ness after July 1862 will be destroyed and all National
bank notes SO received viii be changed with the banks
issuing the for United States notes which notes
of United states notes issued payable in demand
athe Treasury ofthe United states after one year rom
of The notes will be legal tender for the
redemption by the banks OF their circulating notes, and
d on a beoe say and the Interest on the pub
lie debt where such interest is payable in COIN That IS
themselves be paid in coin at maturity by the United
States Taking the estimated currency als0 o,
0OOOO0O0, as basis OF calculation, and the conversion
from the present irredeemabe United States notes into
notes redeemabe in coin year from date would be
at the about month, 100000
day That is during the month OF July 1862 there would
be paid out the United States Treasury SIS 100000,
in notes payable in one year from date Of ISSUE on de-
amount each month during the year, which would make
the total amount thus converted during the nscal year
ending June So 1870 SloOVOVO OoS DOnI one nan lhe
United states notes outstanding The same
ury continue same would be coin notes
during the next fiscal year That Is, one-1af the
vertbe INTO notes payable in coin in one year from the
Este % I5 ne HyS6nId he tLns verfd dnTi1S
the fiscal ending June 80 1871 This gradual substi-
tuition OF coin notes payable on Sday certain for legal
tender notes never actually payable their face the
6rst measure proposed by this bill 1t 10 the means Of
sure but gradual aud the resumption Of
ments Ihis Is 70 oe sno nsS sp % ha net
step relates to the payment OF these coin notes This
rSt issue ON that day the 100000 in notes, issued
year before viii become redeemable and IT, presented
demanded at the of the original issue, say
$4,000 daily the time in which they can be presented Ior
years. July 1862 TO July l. 1874 These notes thus
redeemable legal notes and gold and serve two
very Important purposes which seem 70 me essential TO
the actual day Of payment to the several times when the
Government can undoubtedly make and maintain It ;
second, they give in the meantime the highest possible
that it win be made Not merely the declare
q
OF contract with and direct promise 10 each holder OF
these notes borne the face Of the note ITSELF that they
features Of tins plan namely frs the issue for two
tS S5 hSte com and IN seS SGs y pfc
vision for the payment in coin one year later
extending through Ike period OF two years pro
vision for the redemption IN spece.ofthc united States
notes outstanding within the three years ending
redemption by the national banks Of their than
required by tho pTeseqt law thar Is 2 redemption in L.
CALENDER notes for the reason that not consider IL
practicable for both the Government and the banks 70
resume at the same time aud TO undertake to provide
for both might prevent resumption by either AppTeeL
will be opened for the banks TO follow and redeem their
esnt can be adopted after the Government has placed
currency, which underfes the bank currency upon
tits specie basis and establish public confidence in It's
permanenoe, and have practically added much to
medium for tho redemption OF the national
bank notes With so large amount OF paper In eircu
none of which can be retired without seriously derangng
business, checking production aud impairing the
count Of twenty i've per cent in specie It Is the part
wisdom 70 make haste slowly The main point to be-
gin TO resume merely resolve that will do Mt
Some future day but commence at and however
slow the progress each step y not only carry us nearer
dence which will enable to reach It, Provision Is also
made for keeping tne currency ShSh s 1 proposes
gress There Ia no contraction OF the currency by ls
10 reissue these com after they have been received
into tho Treasury before maturity in payment OF public
dues or TO issue In their stead the same amount OF like
notes on time. This discretionary power, although not
an Important feature OF the paD may be found necessary
70 be used and valid objection 70 It's use exists as
notes received In payment OF public dues actually
paid redeemed by the United states ike discre-
tiOnary authority issue notes shorter time than
one year than three months 10 enable
the Secretary TO hasten the time for resuming ne hnds
II practicable 20 do after the maturity OF the notes
first Issued Having thus stated the general provisions
the bill It proper consider what viii DO It's general
their tenor second what win be the effect upon the
currency OF Issuing them 49,. -, n. .,ao