New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-28

suspended Il specie be made TO perform some OF
functions OF currency it adds much to the volume
Of the currency and as specie contracts become
general me process Of resumption Is complete
rency 1t Is not the most convenient for trans
portation, even from hand TO hand To obviae this,
commercial paper, bills OF exchange drafts and eerth
Gates OF deposit have been devised distant exchanges
and paper money convertible into coin has been used for
exchanges from hand TO hand. When you authorize
contracts in gold and make demands for gold you at
unlock for daily the coin boarded in private
hands You can then provide the most important agency
equal in value to god-its representative, easy to
guard conceal and transport II Is only by restoring
gold contracts that you safely avail yourself OF all
the multiplied uses OF paper money Then and not until
gold now lying idle in the Treasury may then DO utilized
made to produce interest by the issue Of coin notes
based upon It, and thus enter into actual circulation and
gradually be made TO perform all the Of money now
performed by deprecated currency This is the basis
by the issue Of gold notes based upon it, and their app
cation to the purchase Of bonds and the reduction of IN
eres Aud the right to make contracts in gold may now
safely and properly DO extended TO banks organized
under the National BANKING n Upon SeP0d 90
Issue gold notes eqgaI to S5 per cent Of the value OF
ton. Their payment will be in coin, but in all
other respects they may be subject to the general
OF the banks especially In commercial cities will gladly
oval themselves Of such provision TO withdraw their
on demand into com. The superior value OF com
notes, t9eI convenience the goldproduclng States
every part Of the country. confident that under such
system the National banks WILL II allowed, and before
the present circulation and that too, without diminish
ing the aggregate OF circulation. Many Of them
the requisite deposit Of additional bonds and
the gold certificates now issued from the Treas
ury might be used for their without Great
ing demands for coin. There Is but other
bill relating gold contracts and gold notes and that
grows Of the doubt that rests upon the validity OF the
Legatender act We must not forget that currency
tracts depend upon the agreement OF parties but
trely upon tho validity OF that act This has always
been doubted and is now contested before the Supreme
Court remember very well the discussions in the Sen
ate when this act passed It's validity was theI dened
by Judge Colamer, and other able jnrists and II was
only maintained by myself and other Senators from tho
imperative necessity OF supporting armies then IN the
field This necessity has long since ceased There can be
pretence that as to future contracts by the United
States by individuals there is any necessity that the
public credit should any longer take the place Oh reI
money The Legaltender act is only material as II affects
existing contracts Is wise to continue measure only
eessity has passed. II may be that tho Supreme Court
will deny the validity Of the Legatender act or limit its
operation existing contracts made since It's passage. IL
may currency contracts to enforcement IN com Is
II not wiser to bridge over this uncertainty by authorzhg
tho adjustment OF TINS matter between the GteuoT anu no
debOn Again, Sir the law as now stands productive
OF gross injustice lou require nearly one nan o your
taxes 10 be pald IN gold ana yet you VIII not ehOlceh
contract by which the merchant buys the gold for you
Tho value OF commodities Is not affected blythe curren
cy used II the currency is Deprecated 1t VIII take more
OF purchase the article. iii Is appreciated, II VIII
currency not affect the price OF the other commOd
ties IN their relation each other. This only be eff
feced by the demand for Them by the supply OF them,
and ultimately by the OF producing them SO
without property and not In debt but who depends upon
by an appreciation the currency. His wages may DO
less what he OF the appreciated currency
ceiyed before The change does affect him Tor time,
for land and labor are the last commodities TO feei
precnon the currency Is injurious 10 him. for his food
and clothing Ise more quickly Than ms labor oat ap
10 him. for the that his labor does not fall IN
price as quickly as food ana clohlng dhe ya,ue OF
mode Of appreciation III Is brought about by sudden
.fn rlaga nd
labor Of fixed salaries and incomes are Dene
81 The pureciaon Their incomes have increased pur
chasing power aud they are enabled TO extend their
purchases supply new wants and add TO Their capital
Tho opposite eject during the war. when the currency
being deprecated carried distress ana want, ana
effect upon preachers and widows and old men, who
the purchasing power OF their annutes melt away
and condition Of independence changed TO poverty ana
They Will. by an appreciation Of the currency be
and bankers viii be affected by appreciation OF the
currency precisely their debts and credits bear to each
on debts due them they must lose TO the fun extent OF
the appropriations and they must make ther loss good by
ac OF part OF their property nj reduced prices or by
contracting debts 10 be paid In an appreciated cur
rency As general rule any apPeeaton ol m AM -
aud when enough IL due them to pay Nth yet the
delay payment the failure Of their debtors almost
alton OF the currency far more distressing operation
than may suppose our and other nations
have gone through this process before, and always with
tho sorest distress. Sometimes they have repudated
the deprecated currency, and from the necessity OF
the case, fallen back upon barter and gold Suoh, as
have already stated, was the case with the Connsn'
crate scrip All revolutionary movements were &C
compaued with the utter destruction OIL credit ana trade
We have also 10 guide MS several examples OF the appro
citation Of debased currency AT the revolution OF lSso
England the silver com, then legaltender had be-
come so deprecated Oy wear Aun ~ ChPphs as 20 80
worth only seventynye per cent OF the mint standard
and this was practically the only currency IL became
necessary appreciate this currency 20 the mint stand
ard. As all prices and obligations OF debt had become
proposed reduce the mint standard To the current
standard TO issue new shings az one aud oneonrth
Locke the two foremost men OF all the world" who
contended that the loss OF reconago was thrown upon
the mint IL would affect the individuals ~ all This
view strongly opposed by practical merchants but
the coinage issued and the old com retired AS
was all right but tho effect was immediately disastrous
upon al prices IL took IN more o sbnS 20
debtors We're ruined. The Bank OF England, then
in its infancy, only escaped failure by Issuing It's
was utterly wrecked small capitalists found them.
selves ruined, and laborcrs and citizen.
yertible paper currency. lionce the unpOpu4lty OF
cept capitalist OF debt to tho salaried officer or
annuitant 1t Is period Of loss danger assitude OF trade
disaster 10 every railroad it is an addition OF least
third TO the burden Of the debt and more than at
means the necessity OF paying ESQ for every 100 OF It's
and deposits except so far as tho bank may transfer
debts their capital though onothird less than
their property 1t moars the fall OF oil agrientarai PRO
durOns without any very great reduction OF taxes 10
attempt this task suddenly by surprise upon cur people
paTayLng their INDUSTRY ny hITchlluS thth
IN the midst of lawful business, and applying new
standard OF value 10 their property without any reduc-
ZION OF their debt or giving them opportunity 10 com
Mound with their creditors distribute their loss would
bo an act OF folly without example IN owl IN modern
age OF the Legal tender actthat We inflicted tho Same
loss ON the creditor that now depreehte LOT the
debtor. This is not true. The effect OF the Legal
tender net was undoubtedly TO deprecate our notes,
Int The process was very slow and gradual For more
than year IL scarcely operated AS depreciation, ana
during ali tho time tho capital paid of by deprecated
notes was invested In bonds bank stocks railroads. and
created by tho war, which yielded
as much mn gold as the capital produced before the war
Cant lost nothing by the even when PAID IN green
baeks for the demands capital during tho war made