Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1869-04-01
Of Specie ePaynents--ImPor-
tnnt suegestfons by Amasa Walker.

|
WASHINGTON, March "a.
The following correspondence giving
the views of Mr.. Amasa Walker, of Mas
saehusetts, on the subject of the resump-
ton of specie payments, &C., has been
received by Mr.. Garfield, Chairman OF
the House Committee on Banking and
Currency:
Hon. JAMES 4. GARFTELD-lLy Dear
sSiI. Having observed with great pleas
ure your course hitherto upon all ques-
tions relating to money and finance, l
take the liberty in this manner to pre-
sent for your consideration the following
plan for the gradual but voluntary re-
duction of the currency and its restora-
ton to the specie standard.
Il am induced to do this because all
the plans heretofore brought forward in
Congress have contemplated either the
absolute withdrawal of IA part of the ex-
isting circulation or the compulsory re-
sumption of specie payments by the
National Treasury and banks in Obedi-
ence to legislative enactment. All such
measures being entirely arbit trary in
their character, do not recognize those
laws of supply and demand which should
always be carefully regarded in every
provision relating to the currency, COM
merce and industry of the country. At
present there are two kinds of currency
| in use-the issues of the national banks,
and the Treasury notes known as green
backs. The circulation of both of these
is under control of Congress which can
compel the withdrawal of either or both
pro rata, as it shall deem most advanta
geous to the public interests; but in
- \
would be compulsory one, made by
the exiting demands of trade or the
needs ofrAA currency, and it is quite APP
parent, from What we have already seen,
| it is not in accordance with the popular
will; and which, while it shall be certain
to secure the intefftfed object-the res
toratiop of the--sIgrency~to the specie
value-%Hl not be liable to those objec
tions which have been urged against
every measure hitherto proposed for
that purpose--sOme plan more in har-
mony with public opinion and the laws
of trade Believing that this can be
done, | venture to present the following
propositions:
"First-That Congress authorize the
issue of compound interest notes, pre-
cisely like those with which the people
are already familiar, to an extent equal
to its Treasury notes, say $50 900, 900, or
so many as may be required to redeem
the greenbacks. Let them be of the
with suitable proportion of 500 and
81 900 for large operations.
"Second-Let these notes be dated on
the first day of each successive month
commencing with the first day of July
next, when ten millions should be made
ready for issue, and an equal amount on
each succeeding month, until the entire
quantity has been furnished.
"Third-Letth these notes be convertible
into 1910 bonds at 5 per cent, like those
heretofore issued, at the end oftwo years
from date, but not before.
"Fourth-Let Congress imperatively
require that these notes and no other be
paid out for all disbursements of the
Treasury, except those payable in coin,
so long as there are sufficient to meet
the wants of the government, and if the
whole monthly issues are not thus put
in circulation, let the Secretary be re-
quired to exchange them for greenbacks,
as he will undoubtedly be able to do
since they must be much preferred to
the latter.
RESULTS.
"Such is the general outline of the
plan here proposed, and the following
results may be confidently anticipated:I
"First-The no es being widely diff
fused throughout the entire nation will
come into the hands of all classes, and
eventually supersede the present green
backs, and consequently, ifpersons any,
where are able and disposed to heard
them or lay them by as an investment,
they will have abundant opportunity to
do so, and from what we have seen in
relation to the compound interest notes
heretofore issued, we may be certain that
this will, to a great extent, take place; |
and that finally the whole mass will be
converted into ten-forty bonds.
"Second-Under this plan there can
be no contraction of the currency that
is not wholly voluntary on the part of
the people, for so far as it takes place it |
will be done, not by the arbitrary act of
the government, or banks, or arbitrary
speculative classes, but entirely by the
individual holders of the notes.
"Third-It is evident that since those
who buy the notes, do so for the sake OF
the interest upon them, they will be
certain to put them into circulation
again, if the demand is such that they
can gain more by using or loaning them
than by keeping them on hand. This
will, of course prevent the possibility of
any extravagant security of money, or
high rate of interest, since whenever
the rate is much above six per cent, the
compound Interest notes Will be brought
into circulation, and all danger of a
panic in the money market will be ef-
fectually prevented.
"Fourth-Again it may be observed
that these notes will form an elastic
currency, in the best use of that term;
and although elasticity is the worst and
most undesirable quality in currency
designed for permanent use, yet, as an
alternative during the transition from a
vastly expanded and wholly irredeema-
BILE currency to one equivalent to gold,
such quality will at least prevent the
danger of distress or loss which many
persons fear would attend the return of
specie payment by the absolute and
direct withdrawal of a part of the circu-
lating medium. At present the currency
of the country, consisting wholly of
credit, or mere promises to pay at some
future and indefinite period, remains
fixed quantity without any reference to
the wants of trade, since it cannot, like
specie, be exported and imported accord
merce. By the substitution of compound
interest notes this popularity will no
longer exist, because both a centripetal
and a centrifugal force will be intro
duced into the currcncy-a centripetal
force because here will be certain and
con slant tendency to boarding as the
ability of individuals will permit; and
ce ntrifugal force because the events of
trade, the demand for money will be
certain to draw ou. these notes when
ever, and to such an extent, as they shall
be really needed. This desideratum,
soSearnestly contended for by many per-
sons, will be earnestly secured.
"Fifth-But another point worthy of
special notice is the very gradual man
ner in which the contraction will be ef-
e. A 4 L. L. e