The New York herald., 1869-01-28

thus enter into actual circulation and gradually bq
formed BY Z deprecated currency. TINS 3 the baqlt
OF the fourth section Of the DILL which unIlz4 ~
sS y Ss ss q nDs ssssd bG s
reduction Of interest, and the right TO make 49,
tracts In gold may now safely and properly - exs
banks or new banks may be authorized TO ise15
& sss Sps e
circulation. Their payment win be ~ coin. but s.
m se s %s s susi a
OF the banks especially in commercia! cities, MY
gladly avail themselves Of such provision % vih3
draw their present circulation and substitute gold
notes. convertible on demand into coin. with Suc4
provision and on such basis the system may ~
Tie Sne e s SaOe
culation viii be avoided. right conferred upon all
applicable TO ALL would at once secure to the south
and West new banking facilities and would rapidly
er ana
create two cusTsncies q unequal value applies
Of unequal vaiue-soId and legal tenders. r 4
not only multiply the demand for con-we must en-
courage coin contracts issue coin notes both BY the
Contraction dispense with the use Of M the Inferior and
deprecated currency. The superior value OF coin
notes, their use IN commercial cities. their con-
venence In the gold producing States, will soon give
them higher credit and secure them in every part
OF the country. am confident that under Guch Q
system the national banks wiI ifalowed, and before
specie payment, resumed, substitute coin notes
for the present circulation, and that too. without
e aYe ow 1e p 20 af s
the requisite deposit Of additional bonds, and ting
gold certificates now Issued from the Treasury
might be used for their coin reserves without Great,
ing new demands for coin. There Is but one 9th er
consideration wish to urge in favor Of the sections
and that grows out OF the doubt that rests upon the
validity OF the Legal Tender act we must not for-
agreement OF parties, but entirely upon the validity
OF that act. This has always been doubted, ana ta
now contested before the Supreme Court remems
ber very well the discussions In the Senate when this
act passed. It's validity then denied by Judge
Collamer and other able Jurists, and It was
from the imperative necessity Of supporting armies
then in the field This necessity has long since
ment OF the United States we might resume specie
payments very soon-sooner even than the senator
% uaren q d Res
requiring the banks to maintain their full reserves
in legal tenders, by Withdrawing the three per cent
Treasury % we could resume at once. This pro,
cess might increase the bonded Indebtedness Of
the interest five million dollars, but our revenues
ample In gold to pay the increased INTEREST," and
e by Ing re rednon of prces to the od
standard, would be double and perhaps quadruple
the interest Tne % Gody d q our n
in gold and Its burden Is not increased BY specie
payments, while the saving In expenditure ana
at a lower interest would largely exceed any
interest we would have to pay on notes with.
Of resumption fell alone upon the national
banks the task would be an easy one. Their
securties deposited with the Treasurer o. the unlsea
Of their circulation A call under the Banking act
of per centum additional security could be easily
met by the great body OF them and thus enable them
to resume whenever the United states is prepared to
resume. Their profits in the past have been large:
object object OF their organization TO furnish
uniform currency convertible into gold-may well
Bu y
their debtors by the merchants, manufacturers ana
traders Of the county And we are therefore CON- I'M
ali the people Of the United States. How WIN the
Suppose 1t accomplished. how will 4 AFFECT ind!vi
duass person entirely out Of debt but possessed Of
Bopffss By the change n His property would bs q
less nominal value, but Il would be OF the
n vis Y s Day @ te sae ooS
OF commodities is not anected BY the currency
depreciated It viii take more Of Il to purchase the
article II It is appreciated 1t win take less; but the
not affect the price Of the other commodities In their
relation to each other This can only be anected by
s bg f e ns U s
man without property and not In debt but WIG
currency. ais wages may be iess, but what he
receives Of the appreciated currency has the same
fore. The change does not anect him for time, for
land and labor are the last commodities to feel
a depreciation IN the currency il injurious to
him, for his food and clothing rise more quickly
M me- % b q or re s
quickly as food and clothing. The value q labor.
mode OF appreciation. II It is brought about BY
sudden contraction. the result will be suspenaion
in tho price OF labor. Persons OF fixed salaries and
incomes benefited by an appreciation Of the CUR
incomes have increased purchasing power, and they
are enabled to extend their purchases, supply new
wants and add to their capital The opposite elect
precated carried distress and want and poverty into
many comfortable homes. 1t fell with severe effect
the purchasing power or their annuities melt away,
and condition OF independence changed TO poverty
rency. be restored to their own again. Merchants,
dealers, traders and bankers Will be affected by an
and credits bear 70 each other. II they owe more
than they promptly collect on debts due to them
they must lose TO the full extent OF the appreciation
sale Of q part Of their property at reduced
prices. or by contracting new debts TO be paid
appreciation OF currency is injurious to all these
classes, for they are generally in debt; and even even
N Tnen snonsa Or s as . q he
always embarasses them. Commercial and'bankin8
usage compels promptness so that merchant ora
banker however prudent he may be, fs often COM
PEELED TO sacrifice his assets to meet sudden appres
citation OF the currency. But the distress caused by
an appreciation Of the currency falls mainly on me
ability to pay. What does specie payment mean
to debtors II means the payment OF one hundred
and thirty-nve dollars where he has agreed to pay
one hundred dollars which is the same thing, the
payment OF one hundred dollars where he had agreed
chased property and paid one-fourth OF Il II means
the loss OF the property II means the addition Of
fourth to all currency debts In the United Staes
measure to require debtor now to pay hts debts
In gold or currency equivalent to gold requires him
wheriI he agreed to pay one hundred ana IL this
appreciation ia extended through period
OF three years It requires him to pay
an interest OF twelve per cent In ad-
dition to the rate he has agreed to pay. The
debtors OF the country include the active, enter