The Plymouth Democrat. (Plymouth, Ind.) 1869-1941, 1869-12-16

The returns show that very large amount
of foreign trade is in English hands. We
are not only thus dependent upon a rival
country for the performance of the bust
ness which should be in the hands of our
own people, but our ability to maintain
specie payments is materially diminished
If the entire foreign trade of the country,
both of exports and imports, were carried
on in American ships, the earnings would
not be less than $75,000,000 Were the
trade exclusively in American hands, a
large part of this difference of $47, 100000
would be due to citizens Of the United
States, and payable in other countries.
This amount would ne thus added to our
ability to pay for goods imported from
those countries. l deem 1t
essential to our prosperity that the ship
ping interests of the country be fostered,
not only as nursery for seamen, but also
as an essential agency in enabling the
Government to institute and maintain
specie payments 1t is an interest, also,
which, in its development, is as important
to the States, and to the people remote
from the sea coast, as it is to the maritime
sections. Every addition to our facilities
for the export of the products of the inte
rior is as advantageous to the producers
as to the merchants and builders of
the coast While do not anticipate that
it will be necessary to delay resumption
until our proper commercial position
is regained, l am satisfied that the de-
velopment of the navigation and ship
building interests will improve the credit,
and rapidly augment the wealth of the
country"
Concerning the resumption OF specie
payment, the Secretary says:
1.-THE suggestions that have made In
dictate my opinion that it will not be wise
to resume specie payment while so large
a part of the interest bearing debt OF the
country is represented by fvetwenty
bonds, and held by European merchants,
bankers, and manufacturers. Questions
that have been raised in regard to the
nature OF the obligation assumed by the
government in the issue of these bonds,
have undoubtedly deferred many persons
from purchasing them as permanent in
vestment, and consequently they are large
ly held in this country and Europe for
speculative purposes, by persons who de-
sign to put them upon the market when
ever an advance shall furnish a sufficient
inducement, or when political or financial
disturbances may create a demand for
money for other purposes. 1t is probable
that from seven to nine millions of these
bonds are now held in Europe, and, to a
considerable extent, by persons who will
not dispose of them under the influence to
which have referred Such a panic as
existed in Europe in 1866, at the opening
of the Austrian and Prussian. war,
would be likely to induce tine re-
turn of sufficient amount to
this country for sale to embarrass bust
ness, and, in case of resumption, to cause
the suspension of the banks. 1t is there
fore, IN my judgment, essential that the
largest part of the $50 bonds be with
drawn, and that other bonds be substituted
in their place, issued upon terms and con-
ditions which admit of no doubt. In fine,
the practical question is not merely the
resumption of specie payments. AS a
measure by itself, it is not difficult, but
the problem is to resume under such cir
cumstances that the position can be main
tanned, not only in times of tranquility but
also in peril. Our course, it seems to me,
is plain. Every measure of the govern
ment bearing upon the subject should
tend to appreciate the value of our paper
currency. 1t is probable that some de-
crease in the volume of paper will ulti
L l.
| spectfully suggest that the Secretary oil
| the Treasury be clothed with authority to
reduce the circulation of United States
notes in amount not exceeding S2,000,00(
in any one month Thus will the country
be brought gradually, it may be, and yet
| without disaster, into a condition wher
the resumption of specie payments will be
easy, if not unavoidable.
Il Al.
| be fully established in Europe, and there
shall be no doubt either of our ability OIL
| disposition to meet all of our obligations
bonds, heretofore, and now, to a large
extent, held by merchants and bankers
will be transferred to capitalists for per
manent investment. When this change
shall have taken place the probability o
our securities being sent home under the
influence OF political or financial disturb
ances in England will be very light, ant
when, as a concurring fact, our exports
exclusive of public securities, shall bt
equal to our imports, specie payment.
may be resumed without even temper
airy embarrassment to the business of th,
country"
| Mr.. Boutwell, cites attention to two evil
in the present banking system, the SAM
| oo h'eAONi Al Viz lCpOII vi TIC
Ter of the Currency-the first that of tn
banks allowing interest on deposits, an,
the second, the practice of making cal
loans for speculative purposes. 1t doe
not seem to him to be wise to authoriZ
the funding of the whole ,amount of So
bonds, which as is ROW anticipated, will'b
outstanding on the 1st of July next; bu
that 100000 at least should be sui
fered. to remain, either for purchase O
redemption previous to 1874. Should tn
sum of $3.50, 100000 be left for that pull
pose, the entire public debt would be in
condition to be easily redeemed betwee
1874 and 1881. The 1O-40 bonds coul
be paid and provision also be made for tn
redemption of the bonds which will bt
come due in the year 1881. 1t may b
wise to reduce the proposed loan to 81
UO0,00O,OOO, which would then leave fo
payment, previous to 1881, the sum
: about 67O,0OO,000 or hardly more tina
S60,GOO,OOO year. Assuming that til
loan will be for an amount not exceedin
$l,2OO,OO0,OO0, he recommends that it /
offered In three classes, of 800 000, 0C
, each. The first class to be payable in
years, and to be paid in 20 years; TIL
second class of S400,000,000 to be payab
in 20 years, and to be paid in % years an
the third class of $400, O0O, 900 to be payab
: in 20 years, and to be paid in 30 years
In Offering the new loan, citizens an
subjects OF other governments should r,
ceive the strongest assurance that the il
terest and principal are to be paid in coli
according to the terms of the bonds issue,
! without any deduction or abatement wha
ever.
f When the 500 bonds shall have bee
f funded TO the amount of 100000 900
! $, 100000, the revenues can be r
? duced materially, and yet sufficient sun
be raised to meet the ordinary expens
OF the government, 20 pay the interest G
I the public debt, and also to pay from SO;