Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1869-02-10
important end, to wit, contraction of cur
rencv and fall of DriceS

/
rency and fall of prices.
When, then, we shall settle down to
| specie paying paper currency, L am inclined
/ to give the preference TO a system of nation
al banking free to all, and paying into the
Treasury as much money as the Government
could save by issuing Its own notes. No
other system could make the bill holder more
secure, earn more for the Treasury, nor so
well supply the wants of trade.
This system cannot be adopted until after
| We resume specie payments and this leads
me to inquire how and when resumption
shall begin To answer this question [ will
| ask another: how much paper will our share
of the worlds gold and silver keep afoat
Before the war under the old system OF State
! banking. we were able TO carry about two
hundred million dollars. We can carry much
more now, both because the world has more
! specie now than 1t had then, owing to our
| improved system OF banking and securities,
to float the same amount OF paper. Lit is
hard TO say how much we could keep out,
but L will suppose $500, 100000. This is
rough guess designed as an illustration rath-
er than as Il statement of fact. On this sup
| position the 500 900, 900 OF paper now out
would diminish after resumption o..$500, COG
! OOO, or to such sum as would be shown by
experience To be our maximum. Specie pay
ments, then, involves j contraction OF the
currency.
Whether this contraction should take place
IN advance, IN preparation Tor, or follow as
the effect OF resumption, l do not care just
here to consider. am only asserting that
we viii have considerably less paper VIXEN
We have specie payments than we have now.
The elect OF this contraction must be a fall
in prices. Whenever we are prepared TO
submit TO this and take the consequences
we can find ways enough to bring it about.
| Many plans have been proposed, ,-all feasible,
though perhaps not all equally good. One
Is to resume at once, IN the belief that gold
will come into the Treasury as it will be
drawn out. The New York Tribune advo-
Gates this way Possibly this plan would sue
ceed. Possibly the Treasury would receive
as much geld as it would be required TO pay
out; but if we did continue to pay specie,
L am quite sure we would soon reduce the
amount of currency, prices would tall, and
the debtor class suffer
Another plan is to fix q time of resump
ton, and save up enough gold to make
1t certain that we will be able to meet all de
mands. This, | think, is Senator MORTON $
plan. This would be pretty sure to enable
us to continue specie payments once begun;
but 1t would not, as is supposed, enable us
to float our present amount of paper. 1t
we thus secured more gold than would ordl-
narliy stay in this country, 1t would flow
back to its accustomed pools as soon as 1t
was put upon tap, and we would soon be
LETT with as much paper currency as our
proper share of the world 5 gold would float,
ana no more. Low prices would follow as
before. Another plan is to reduce the paper
currency to an amount which we might sup
pose could be kept afioat, and then resume
- III. L.
plan is good enough, but the effect would
be precisely the same, contracted currency
and low prices. Another plan is to buy in
or redeem the currency. beginning at about
its present value in gold and rising month
ly in price until we shall finally redeem 1t
at its face In the meanwhile we would pay
out the notes as at present. This plan was
introduced by the gentleman from Ohio,
Mr.. GARFIELD, and is as good as any. 1t
avoids the danger OF compulsory suspension
involved In the Tribune plan, the expense
of boarding involved in Senator MORTON S
plan, and the uncertainty as to the amount
to be retired involved in the Secretary S
plan. 1t is as gradual as any, aud has this
advantage over them all, that it fore tells to
the people exactly how fast prices will fall.
But while this plan Is as unobjectlonable
as any, il does not avoid the great fault (if
fault it should be called Of them all, to wit
an ultimate contraction of the currency. 1t
is because all these plans Involve this result |
that all are rejected We are seeking for u
plan that will keep afoat our $700, 600, 900 |
of paper, and still redeem 1t IN gold upon
demand. We will seek in vain. 1t Is not |
in the power of legislation. All the plans |
proposed, and all that can be proposed, are |
only different roads to the same goal. Some |
may be shorter than others, some more agree
able than others but travail which we will, |
we come to contraction and low prices at last.
Ii low prices is the effect OF resumption,
when can we encounter them with the least
injur y? Most certainly when the people are
least in debt. Ii nobody was in debt, no
body would be hurt by the change. To pre-
pare for resumption, then, the people should
endeavor to pay their debts while prices are
still high. If Congress should take no steps
toward resumption the supreme Court may
The argument over the consututloDahty OF
legal tenders has ceased, and the court
is dehberating. Nobody, L presume, not
even the court itself knows what the decis
ion will be. The uncertainty OF jury YER
diet has passed into proverb, but L would
as leave bet on the jury as the judge Who
can guess to what conclusion mind educa-
ted in belligerent logic and professional sub
tlety, tempted at least-perhaps swayed-
by personal ambition, may come? 1t Is quite
however, the court may search
out some theory by which TO sustain the ac-
ton of Congress, prompted by the terrible
of the war but 1t Is not so GER
tain that it will attempt to elothe Congress
in all future time with plenary power over
all contracts, past, present, and regardless OF
their terms and stipulations, to satisfy them
with anything valuable or invaluable. paper,
wood, leather, or anything else that this Z
body in its ingenuity can invent and call q
money While this uncertainty hangs over
he question it behooves the people every :
where to take advantage of the high prices
md liquidate their debts. Out of debt out
If danger.
You see, Mr.. Speaker, l am neither ad-
-ocating nor opposing these multidinous I
,lans of resumption My object in rising at e
his time was to prove to the House that t
here can be no permanent resumption with q
'ut contraction, and that all feasible plans
# resumption lead directly or indirectly to
hat result
| think we had better not act upon any s
Ian this short session. Standing still is a Il
tep toward resumptlon-a very short step, c.
will admit; but still it is something Every t
ear adds to the world stock of gold and
liver Evarv vaar hy the increase Of our