The Portland daily press., 1869-02-02
DAILY PRESS.
CORTLAND.
Tuesday Morning, Feb uary Q, 1859.
The Resumption of Specie Payments.
PORTLAND .

THE HOUSE OF REPRESENTATIVES,,
TUESDAY, JAN 26, 1869.
The first part OF Mr.. Lynch's speech is de-
voted to criticism of the four plans for re-
sumption which have been proposed by differ
ent individuals and are supported by con-
siderable weight of authority, viz: by grad
ual contraction OF the currency until il shall
appreciate to par with gold; second, pro.
vision by law for immediate resumption by
the government and banks by repeal of the
legal tender act; third, purchase by the
government of its notes at fixed rate of dis
count, gradually reducing the discount until
the purchase is made at par; fourth, an act
OF Congress providing for resumption
at designated time by the govern
ment, to be followed by resumption by
the banks at future day, provision being
made lor this resumption by requiring the
government and banks 10 hoard their gold-
Inc nrst scheme Mr.. Lynch says was put in
operation by Secretary McCulloeh with the
almost unanimous assent of the people, but
proved afailure. Besides, he objects to con-
traction oil the currency on general princi-
pies, holding that we nave less currency uer
capita now than in 1860, and that its volume
is no greater, all things considered than the
business and the sufficiently rapid develop
ment of the country require. To do Justice
to Mr.. Lynchs views ON this subject they
should properly be presented in full, especial
ly as so much controversy has grown out of
the discussion of tie question as to whether
the currency is redundant, and as fulness of
statement is necessary to obviate the danger
OF mlsapprehension; but as the discussion of
his his own scheme occupies all our available
space we are obliged to emit this interesting
part OF the speech. Passing the other three
plans in review, the first two briefly, as unde-
serving OF serious attention, and the fourth,
that OF Mr.. Sherman, more at length, Mr..
Lynch gives the following lucid explanation
of the nature and anticipated results of the
bill introduced by himself:
And this brings me to the bill before the
| House. Does it possess the necessary ele-
ments OF success? Let us examine its proyi-
slons. They are, first, to destroy all United
| States legal-tender notes received into the
| Treasury in the course of ordinary transac-
| tions, and to issue a like amount of United
States notes, redeemabe in coin on demand
| at and after one year from the date of issue. |
| Second, 10 cause all national bank notes re-
| celved at the Treasury to be redeemed by the
| bank issuing the same in United States legal
| tender notes, which legal-tender notes shall
| in like manner bn destroyed, and coin notes,
payable in one year, issued in their stead. =. In
other words, all the paper currency issued af-
ter July 1, 1869, from the Treasury of the
United States is to be in notes payable in one
tror, fla 1ata oT
to make these notes legal tender for the re-
demption OF national bank notes, and for all
other purposes for which United States notes
| are now legal tender
Further, as a matter of subordinate detail,
it is provided that the Secretary of the Treas
ury may, on receiving any of said coin notes
| into the Treasury before maturity, instead of |
| resSuing them, issue an equal amount of |
| new notes payable full year from date and |
also that the Secretary may, at his discretion, |
after the maturity of the notes first issued, is
| sue the coin notes in exchange for the pres
| ent United States notes at less time than
| one year, but not on a less time than three
months. The Secretary is also authorized, in
case it may be necessary, IN order TO main
tain the redemption of the coin notes after
maturity, to purchase coin 10 the amount of
| S50000,O00. To state more in detail the bill
provides tor gradual resumption OF specie
| payments 10y the conversion of the outstand-
ing United States notes into notes pay able in
coin in one year from date OF issue, the con-
version into coin notes being made as the
currency disbursements of the Treasury re-
quire.
Under its operation. if it become law, all
United States legal-tender notes received in
to the Treasury of the United States, in the
ordinary course OF business, alter July I, 1862
wi be destroy ell ; and all national bank notes
so received will be changed with the banks
issuing the same for United States notes,
which notes will also be destroyed, and in
lieu thereof like amount OF United States
notes issued payable in coin on demand at
the Treasury OF the United States after one
year from date of issue. The new notes will
be legal tender for the redemption by the
banks OF their circulating notes, and ior all
other purposes except tor the payment OF du-
ties on imports before maturity, and the in
terest on the public debt where such interest
Is payable in coin. That is, they are les al
tender in general, but must themselves be
PAID IN com at maturity by the United
States.
Taking the estimated currency disburse-
ments of the Treasury for the next fiscal
year, say about one hundred and eighty mill
ION dollars as basis OF calculation, and the
conversion from tie present iriedeemable
United States notes into notes redeemable in
coin in one year from date would be at the
rate of about fifteen million dollars per
month, or half million dollars per day.
Th is, during the month of July, 1869, there
would be paid out from the United States
Treasury $l5,O00,000 in notes payable in one
year from date OF issue, on demand in COIN
at the Treasury, to be followed by like
amount each month during the year; which
would make the total amount thus converted
during the fiscal year endiDg June 30, 1870.
SlSO,O00,O00; being about one half the
amount of United States notes now outstand-
ing.
The same amount, providing the currency
expenditures of the Treasury continue the
| same, would be converted into coin during
the next fiscal year. That is, one-half the
present volume of United States notes would
be convertible into notes pay able i'll coin one
year from the date of their issue, during the
fiscal year ending June 30, 1870, and the 9th
er half would be thus converted during the
fiscal year ending June 80, 1871. This grad
ual substit alton OF coin notes payable on a
day certain for legal-tender notes, never actu-
ally payable on their lace, is the first meas
ure proposed by this bill. II is the means of
preparing for and OF making, not only prac-
ticable and sure but gradual and easy, the re-
sumption of specie payments. This is to be
the first step under this bill TO be taken to-
ward the return to a specie currency.
The next step relates to the payment of
these coin notes. The process is to COM
mence one year after the date OF their first is
sue. On that day the S500,000 in coin notes,
issued year before, will become redeemable,
and il presented at the Treasury must be
paid. As payment can only be demanded at
the same rate as of the original issue, say
S500000 daily, the time in which they can be
presented for redemption will be extended
through the period of two years, from July 1
r 1870, to July l, 1872.
These notes thus become an intermediate
currency between the present irredeemabe
d, legal-tender notes and gold, and serve two
: very important purposes, which seem to me
E essential to healthy return to specie pay
ments; first, they postpone the actual day o.
payment to the several times when the gov
y ernment can undoubtedly make and main.
tain it; second, theNgive in the meantime
the highest possible assurance that it will be
= made. Not merely the declaration OF stat
ute that it shall be made, but the assurance
of a contract with and direct promise to
:, each holder of these notes borne on the face
e Of the note itself, that they will be so paid
e l have thus presented the two main fea
. lures OF this plan, namely, first, the issue for
= two years of notes payable in coin in one
year from the date of their issue; and sec
5 ond, provision for the payment in com 9he ps
year later. extending through like perlou VI
two years, or provision tor the redeinPtlo -. y.
= specie of the United States notes now 9ut-
standing within the three years enuihS July
/. 1872. The bill makes no otner provision
tor the REDEMPTION by the national banks of
;, ~ va -, ;s renuired nv tho nrason 4