The Portland daily press., 1869-01-28
Mr.. Lynch's Speech ON the Finances.
THE GRADUAL RESUMPTION OF SPECIE PAY
MENTS +e --

Mr.. Lynch's Speech ON the Fiuauces.
THE GRADUAL RESUMPTION OF SPECIE PAY
MENTs.
A very able speech was delivered in the
House, Tuesday, by Mr.. Lynch, Representa-
tive from this district, on his measure for the
gradual resumption of specie payments. Only
a meagre abstract has yet come to hand. We
content ourselves for the present with printing
the concluding portion of his remarks in which
he gives conclusive answer to the objections
which have been urged against his proposition.
viz, that it would result in contraction of
the currency and that public officers who re-
ceive their pay in the new notes, redeemable
in coin, would obtain an increase of salary
thereby. Mr.. Lynch said: ~
First. Whatever advantage might accrue to
the public creditor by receiving payment in
the new notes would involve no loss to the
government, as the notes are not to be finall o
retired at maturity. The government loses
nothing by approaching its paper; it nuts
nothing INTO 1t except public faith, public con-
fidence, and secures to itself whatever adyan
tages result from the appreciation not onlv in
the appreciation of its bonds, but in all Dur
chases which it makes. An increased value is
thus given to every dollar received into the
Treasury as well as to every dollar paid out
pass directly from the hands of those to whom
they are first paid, as they have not the ability
TO hold them-generaly requiring all their re-
ceipts to pay their current expenses-and en-
ter directly into circulation at whatever appre-
citation public confidence might fix unon them.
and this appreciation would of course effect a
corresponding reduction of the premium on
gold. -. .-f -.l
Second The immediate effect of conyertinp
the legal tender notes might be to retire the
new issue from circulation; but this would be
done mostly by the banks into which tbey
would naturally run, and which would
substitute them for the legal tender notes
now held as reserve. This reserve amounts
to about one hundred and seventy-two
million dollars, and would nearly alb
This retirement of the converted notes would
AFFECT no contraction of the currency. as
1t would liberate like amount of Iegal.tene
der notes now held as reserve, and send them
into circulation to supply the place of the coin
notes withdrawn. To large extent those
boarded in private hands would take the place
OF specie. which would come out and reduce
the premium on gold. The contra ction, if any
which would take place would be temporary
and voluntary on the part of the business COM
munlty in whose hands the notes would he
held; and such temporary contraction of the
currency is one OF the conditions necessary to
be brought about during the transition from
an irredeemabe to redeemable currency.
The advantage of this mode of contraction is
that it is voluntary, self-imposed and selt-ad.
justing, and controlled by the natural laws of
trade; and that the amount retired is at ali
times within the reach of business, and can be
called forth whenever its exigencies demand
it. --.. .----
Third, An intermediate currency between
the present paper currency and gold would. at
most, be but a temporary Inconvenience to
which business would soon adjust itself a
large part OF it would, as L have shown, take
the place of other paper now out of active cir
culation; and such currency would be a val
liable agency by which to span the chasm now
existing between paper and specie.
1t is Objected that a return to specie pay-
ments will disturb the rel ltion between debtor
and creditor; but this objection applies to any
mode of reaching specie payments, whether
such resumption be facilitated by legislation or
r ,,Ia1 Oh itself without any such help BY the
Plan L propose there can be but little disturb
ance, because there is no sudden or permanent
contraction OF the currency and il would not
decrease the ability of the debtor tc nav nv an
preclating me currency without retiring it by
quantity. Resumption by this metI,od rsonid
In the end, increase rather than diminish the
volume of currency by liberating and nt;Iin; ~
the specie which now lies dormant, beina Iihse
merchandise, only moved by the agency new
of this bill all the advantages of an
arbitrary contraction of the currency
would be secured without apy Of
the evils attending such contraction. Most of
the objections urged against resumption by the
mode proposed in this hill lie with equal force
against any method of resumption, while many
of the objections to all othsr proposed modes
are obviated by this. The alternatives present.
ed, then, are: to remain as we are until time
shall effect cure, or to adopt some measure
which like this will take us step by step to-
ward the desired goal. ~.