Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1869-03-31
Resumption of Specie Payments.
LETTER TO MR.. GARFIELD.
NEUTRALITY-SUSPICIOUS. ANlsl WALKER
WASHINGTON. March a.

LHPokIANISbG6ESTlONSby AMASA NALkEI
WASHINGTON, March "a.
The following correspondence, Civ.
I ing the views of Mr.. Amasa Walker.
| of Massachusetts, on the subject OF
the resumption of specie payments,
! &C., has been received by Mr.. Garfield,
Chairman of the House COMMITTEES
i. OF Banking and Currency:
I Hon. JAMES A. GARFIELD-lHy
Dear Sir: Having observed with
great pleasure your course hitherto
upon all questions relating to money
} and finance, 1 take the liberty in this
manner To present for Your cOnsfdeFa-
ton the following plan for the gradu-
al but voluntary reduction of the cur
rency and its restoration to the specie
standard.
II ann induced to do this because all
the plans heretofore brought forward
in Congress have contemplated either
the absolute withdrawal OF a part of
the existing circulation, or the COM
pulsory resumption of specie pay
ments by the National Treasury and
banks, III obedience to legislative en-
actment. All such measures being
entirely arbitrary i'm their character,
do not recognize those laws OF supply
and demand which should always be
carefully regarded in every provisions
relating to the currency, commerce
and industry of the country. AT pres
ent there are two kinds OF currency
in uSe-the issues of the national
banks, and the Treasury notes known
as gneenbacks. The circulation Of
both of these is under control of Con
gress, which can compel the with
drawal of either or both pro r0f0. as
it shall deem most advantageous to
the public interest; but in either case
the contraction effected would be i
compulsory one. made by force of law
and without reference to the existing
demands of trade or the needs of eur
rency, and it is quite apparent, from
what we have already seen il is not
in accordance with the popular will;
and it seems desirable, therefore, that
some plan which, While il shall be
certain 10 secure the intended object
the restoration OF She currency to
the specie value-will not be liable to
those objections whish have been
urged against every measure hitherto
proposed for that purpOse-sOme plan
more in harmony with public opin-
ion and the laws of trade. Believing
that this can be done, / venture 20
present the following propositions:
"FirSt-That Congress authorize
the issue of compound interest notes,
precisely like those with which the
people are already familiar, TO an ex-
tent equal to its Treasury notes, say
360, 900, 900, or 50 many as may re-
( quired TO redeem the greenbacks.
Let them be of the denomination OF
30, Sl0. so and S50, with a suitable
proportion of SEQ aud 81, 600 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 he maue ready for issue, and an
equal amount Oh each succeeding
month, until the entire quantity hius
been furnished.
'.Third-Let these notes be conver-
tible into 1910 bonds at ) per cent.
like those heretofore issued, at the
end of two years from date, but not
before.
"Fourth-Let Congress Imperative
ly require that these hotes and no
other be paid OOt for all disbursements
of the Treasury, except those payable
M coin, 50 long As there are sufficient
to meet the wants of the government,
and the whole monthly issues are
not thus put i'll circulation, let the
Secretary he required TO exchange
them Tor greenba-ks, as he will uu-
Ioubtedly lie able TO do, since they
must he much preferred to the latter
to-
such is the general o,Itline Of the
plan here proposed, and the following
results may be confidently anticipa-
ten:
"Ffrst-The notes being widely diff
fused throughout the entire nation
will come into the hands of all classes,
and eventually supersede the present
~greenbacks, and consequently, if per-
SOM are able and DISPOSED TO hoa rd
them or lay them by as an iu-
vestment, they will have abundant
opportunity TO do 50, and from what
we have seen in relation to the com
pound interest notes heretofore issued.
we may be certain that this will, to
great extent. take place: and that
finally the whole mass will be conve r
ted into ten-forty bonds.
"Second-Under this plan there cam
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 en-
tirely by the individual holders of tie
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 circu-
latiOn again, if the demand is such
that they can gain more by using
or loaning them than keeping
them on hand. Iris will, of course,
prevent the possibility of any extrav-
agant security of money, or high
rate o. interest, since whenever the
rate is much above six per cent, the
compound interest notes will be
brought into circulation, and all dan
ger Of a panic in the money market
will be effectually prevented.
"FNurth-AgaIn it may be observed
that these notes will foim an elastic
currency, in the best use of that term; (
and although elasticity is the worst
and most undesirable quality in a
currency designated for permanent (
use, yet, as an alternative during the
transition from a vastly expanded
and wholly irredeemable currency to
n equivalent TO gold, such a 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 circulate
ing medium. At present the currency 4
of the country, consisting wholly of
credit, or mere promises to pay at
some future and indefinite period,
remains Il fixed quantity without any
reference to the wants of trade, since
1t cannot, like specie, be exported and :
imported according to the varying
demands of commerce. BY the sub
stitutiOn of compound interest notes
this popularity will no longer exist.
because both a centripetal and n GEN.
trifugal force will be introduced into
the currency ce%ntripetal force
because there will be a certain and
constant tendency to boarding as the
of individuals will permit:
and Il centrifugal force because the
of trade, the demand for mon
ey will be certain to draw out thesei
notes whenever, and to such an extent,
as they shall be really needed. This
desideratum, so earnestly contended
fDr Inv many nprsOnS will ha oo-fasuly