The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1869-02-05

which win be reposcd In these coin notes, for
there wouh DO no such appreciation OF these
notes toward par with gold unless the public
had full confidence that the redemption would
take place at the time promised; and the per-
ccntagc Of appreciation would be the exact mca-
sure Of that confidence.
The gentleman from Indiana, therefore, con-
cedes that the bill would effect the very object
for which It Is intended. namely the eItin-
guishment Of the premium on gold by an APP
probation Of the paper currency. Accepting
the gcntlcman's statement Of the credit which
these notes will win rs correct. let US consider
the effect Of that credit upon the currency. viii
| IL produce that contraction which the gentleman
apprehendsi think. il ut all, only tempora-
rily. For rs all the legal tender notes are In
process of conversion, and all national bank
notes are redccmable in legal-tcndcr notes, the
one issue cannot be appreciated without draw
ing up with II the whole paper currency OF tho
country. The confidence which these coin notes
would inspire would express itself not 70 much
in the form Of premium on those notes above
the value Of the present national currency, rs
in reduction Of the premium ON gold. | can
not better express my ideas Of the effect which
the issuing Of these coin notes would have In
reducing the premium on gold than by quoting
the following extract from speech made by me
in introducing the bill, In March last; OIL.
"with the steady conversion Of the green
backs into notes rcdeemablc In specie ut sPeci-
fed time, and with the certainty Of the ability
of the government to redeem them as promised,
the whole volume Of the currency would begin
TO appreciate. The boarded specie would come
out TO realize the premium, which would every
day be reduced. and ut no distant day be entire
" extinguished. The notes payable in specie as
they approached maturity, would probably DO
temporarily boarded, but only to liberate the
same amount in specie. As fast as they ma
turei and became redeenable In coin they
would remain in circulation rs specie; being no
ceivcd for payment Of duties on imports and
convertible into coin at the will Of the holder,
they would be received in payment for interest
on the public debt and for all other purposes for
which coin Is now required. Whenever any
amount of these notes was actually redeemed
the same amount Of coin would be liberated
from the treasury, where II now lies dormant,
and become useful TO the community. Once
place this paper circulation of the Government
upon specie basis, and establish public conf
dence in It's pcrmanence, and we have practical-
ly added $3.50, 900 900 Of specie to the amount
now in circulation, and thus furnished nell
um for the redemption Of national bank notes"
All arguments which have seen urged
against the bill start from the same point as
those Of the gentleman from Indiana, namely,
that the notes are Immediately to appreciate
and some Of them include another objection
which the gentleman did not name that this
appreciation would create q difference between
this issue and other notes In circulation, and in
ure. to the advantage Of the creditors OF the
Government. As have already said, believe
the appreciation would be expressed In the re-
duction OF the premium on gold, rather than by
any premium on this particular issue. But ad-
hitting the force Of the argument which con,
cedcs the practcability Of approaching tho legal
tender notes by making them payable at day
certain. and thus extnguishing the premium
on gold, let US see whether these apprehend evils
and inconvenience arc Of so serious character
as TO counterbalancc the advantages which
would result. from resumption Of specie pay
ments.
First. Whatever advantages might accrue
to the public creditor by receiving payment IN
the new notes, would involve no loss to the
Government, rs the notes are not to DO finally
retired at maturity. The Government loses
nothing by approaching its paper It puts
nothing into it except public Faith, public con-
6dcnce, and secures to itself whatever adyan-
tages result from the appreciation not only In
the appreciation of its bonds, but in all pur-
chases which il makes. An increased value Is
thus given to every dollar received into the trea-
sury as we'll rs to every dollar paid out. The
coin notes paid out Of the treasury would pass
directly from the hands Of those to whom they
arc first paid, rs they have not the ability to
hold them-generally requiring all their re-
ccipts to pay their current expenscs-and enter
directly into circulation ut whatever apprccia-
ton public confidence might fix upon them;
and this appreciation would, Of course, effect
n corresponding reduction Of the premium on
gold.
Second. The immediate effect Of converting
the legal tender notes might be to retire the
new issue from circulation; but this would be
done mostly by the banks, into which they
would naturally run, and which would subSfj-
tute them for the legal-tendcr notes, now held
rs reserve. This reserve amounts to about
one hundred and seycnty-two million dollars,
and would nearly absorb the amount issuei the
first year. This retirement Of the converted
notes would effect no contraction OF the curren-
CIV, as it would liberate q like amount Of legal
,,,lor ,,o,os ,o,v hall as m reserye and send
.iau' ;,,o oronia,;on 70 sunnly the Mace Of the
.o; s" ,",o. ,r;,hJr.wn To a j,rye extent those
S""r JoJ IN nr;voto hands would take the plaoe
"S auo.;o wh;oh would come ont and reduce the
premium on gold. The contraction, II any,
"non "Oa ~. ,,,r, ~ tho hns;ncss com,
anu Voluntary W s"S S p .ha 49, ~on,J y.
hoId. and such tsmnorarv contraction of the
ourr, , " i ono Of tbc conditions necessary 10
i,a hrnnyht ohont during Tho transition from an
;rrn',scmahlc ~ a redeemable currency. The
aJvantago Of this mole of contraction is, that
Il il voluntary. self.imposed, and sef.adiusting,
anil controlled Inv the natural laws of trade: and
that the amount retired Is at all times within
the reach Of business, and can be called forth
whenever its cxigencies demand il.
Tn this rec,rJ Tho con notes would not be
rri;ts tLo OBSERVATION-DISCLOSURES notes. which were
hold 20 = cons;dcrabIe a.tcnt NV the hanks as a
,,ar. ~ tSo;r rcserye and which went as these
p";r Pin ~ notes would cn, 20 make nm that mart Of
AL .,.s-o,.,, ,.L;1I l. I,J bv IN small s,,m. bv