The Portland daily press., 1869-02-02

deuce might fix upon them and this appIecl
atioL would, Of course, effect coriesPoNN'As
reduction of the premium ON Soia. -,.,n.
Second The immediate erect Oh COn'e.E
inc the local tender notes might De 10 reIlre
tbe new issne from circulation; out THIS
would be done mostly by the BANKS mo
which thew would naturally run, and which
yn1ld substitute them for the legal-tender
notes now held as a reserve. This reserve
amounts to about one hundred and seventy
two million dollars, and would nearly absorb
tle amount issued the first year. THIS re-
trement of the converted notes would effect
no contraction OF the currency, as it would
liberate like amount OF legal-tender notes
now held as a reserve, and send them into
circulation to supply the place OF the coin
notes withdrawn. To a large extent those
boarded IN private hands would take
the place of specie, which would come
1t and reduce the premium on gold
fIe contraction, if any, which would take
place woul be temporary aud voluntary on
the part OF the business community in whose
hands the notes would be held; and such
temporary contraction of the currency is one
OF the conditions necessary to be brought
about during the transition from an irredeem-
able to a redeemable currency. The adf "a u
tago of this mode OF contraction IS, Ina ~ %
voluntary, seltimposed, and sei-aIJ uoUins'
aud controlled by the natural ia"s VI t.aue'
and that the amount retired Is aC an timeS
within the reach of business, anu can DE
called forth whenever Its exige-cles de-
Inand it.
In this regard the coin notes would not be
unlike the mpound-interest notes. which
were held to considerable extent BIZ the
banks as a part Of their reserve, and which
went as these coin notes would 90, to make
up that part OF the currency which is Land by
IN snail sums by all classes, and which in
the aggregate constitutes no inconsiderable
percentage OF the circulation. individuals as
well as banks keep;a reserve, but keep it to be
used when required. The last dollar paid out
would undoubtedly be the one VIII ch in the
estimation of the holder was the most valua-
Bile, but that last dollar would come out, and
be made available as currency either at par
with other paper or at an intermediate pre-
lum between that paper and gold, whenever
the demands OF business required it,
Third. An intermediate currency between
the present paper currency and gold would, at
most, be hut temporary Inconvenience to
which business would soon adj just tself A large
part OF it would. as / have shown, take the
place other paper now out OF active circula-
ton; and such currency would be valuable
agency by which to span the chasm now ex-
isting between paper and specie
1t is objected that return TO specie pay
ments will disturb the relation between debt
or and creditor; but this objection applies to
any mode ofreaching specie payments wheth-
er such resumption be facilitated by legisla-
ton or comes OF itself without any such help.
BY the plan propose there could be but lit
tie disturbance, because there is no sudden or
permanent contraction of the currency, and il
would not decrease the ability OF the debtor
to pay by approaching the currency without
retiring it; by improving its quality without
reducing its quantity. Resumption by this
method would, in the end, increase rather
than diminish the volume of currency by lib
Grating and utilizing the specie which now
lies dormant, being, like merchandise, only
moved by the agency of the paper currency.
Under the operation OF this bill all the advan-
tages OF an arbitrary contraction of the cur
rency would be secured without any of the
evils attending such contraction. Most of
the objections urged against resumption by
the mode proposed in this bill lie with equal
force against any method of RESUMPTION,
while many of the objections to all other pro-
posed modes are obvIated by this. The al
ternatives presented, then, are: to remain rs
we are until time shall effect cure, or to
adopt some measure which like this will take
US step by step toward the desired goal.
Mr.. Speaker, there is no royal road TO the
payment of our debt; and those who pre-
'NnN Vn"o VIC Ctu Carl y Tue DufuenS imposed
upon us by the contest for national existence
through which we have successfully passed.
without Inconvenience and labor, do but
Halter and delude. 1t must cost us some
thin2 to return to specie payments. But
believe that by adopting careful and wise
measures the task we have to perform will be
so toned and proportioned to our gradually
Increasing strength that it will be acconp-
ished naturally and easily, and will be in
itself means of national development and
financial health and strength. The chasm
between our currency ana specie must be
brideed; it cannot be leaped. We must, first,
promise TO resume; second, show that we
are able to perform our promise; and third
arrange SO that the transition from paper to
gold, from an irredeemable to a redeemable
currency, shall be gentle and gradual, and
thus avoid any sudden revulsion and conse-
quent panic. This done, We shall have fixed
our currency on firm and enduring basis,
and brought our public debt into normal and
heal thy relations with the trade and COM
merce of the country.