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

from the present irrvieemablo United State
notes into notes redeemable In coin In one yea'
from date would be at the rate Of about 6fteer
million dollars per month or halls million dol.
lars per day.-fhat Is, during the month O
July. 1869, there will he paid out from Tho
United States Treasury sl5,0OO,OOO In notc'
payable in one year from date Of issue, on de.
mand, in coin, at the Treasury, to be followcd
by n, like amount each month during the year
which would make the total amount thus con-
yerted during the fiscal year ending June 30
1870, $50, O00, 900; being aboCt one.half thu
amount of United States notes now outstand'
ing. 'i|t III.
The same amount, providing the currency ex-
pcndturrs of the Treasury continue the same
would be converted into coin during the next
fiscal year. That is. onc-half the present vol
ume of United States notes would be converti-
bic into notes payable in coin one year from the
date Of their issue, during the fiscal year end
ing June 80, 1870, And the other half would be
thus converted during the fiscal year ending
June 80, 1871. This gradual Substitution Of
coin notes payable on day certain for legal
tender notes, never actually payable on their
face, 1, the first measure proposed by this bill.
II is the means Of preparing for and Of making,
not only practicable and sure but gradual and
easy, the resumption Of specie payments. This
Is to be the frs, step under this bill to be taken
toward the return TO specie currency.
The next step relates to the payment Of these
coin notes. The process is to commence one
year after the date Of their first issue. On that
iaythc $500, 900 In coin notes, issued year
before, will become rciccmable. and II present.
ell at the Treasury must be paid. As payment
can only be demanded ut the same rate as Of the
original issue, sly $500. 900 daily, the time in
which they can be presented for redemption
will be extended through the period Of two years
from July /, 1870, to July 1, 1872. '..f.
These notes thus become an intermediate cur
rcncy between the present irrcieemable legal
tender notes and gold, and serve two very Inn
portant purposes, which seem to me essential to
healthy return TO specie payments; first they
postpone the actual day to the several times
when the government can undoubtedly make
and maintain it; second, they give in the mean.
time the highest possible assurance that 1t will
be made. Not merely the declaration OF stat
ute that II sha / be made, but the assurance Of q
contract with and direct promise to each
holder of these notes borne on the face OF the
note itself, III they will be so paid.
have thus presented the two main features
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 second, provision
for the payment In coin one year later, extend-
ing through like period Of two years, or pro-
vision for the redemption in specie Of the United
States notes now outstanding within the three
years ending July /, 1872. The bill makes no
other provision for the redemption by the nation-
nj banks of their notes than is required by the
present law; that is n redemption in legal-tender
notes, for the reason that do not consider 1t
practicable for both the government and the
banks to resume at the same time, and to UNDER
take TO provide for both might prevent resump-
ton by either. Appreciate the United States
notes to a par with gold, and way will be
opened for the banks to follow and redeem their
notes in specie. The measure necessary to Sc
cure this result can be adopted affcr the govern
men has placed its currency, which underlies
the bank currency, upon a specie basis. Once
place the government currency on this specie
basis and establish public confidence in Its per-
manence and we have practically added so
much to the specie of the country, and thus fur
nished medium for the redemption Of the ma
tiOnal bank notes.
With so large an amount Of paper In circula-
ton, every dollar of which is probably employ
ell and none of which can be retired without
seriously deranging business checking produce
ton and mp,ring the revenues Of the govern
mcnt; with this paper ut discount Of twenty
five per cent. in specie, it is the part Of wisdom
to make haste slowly.
The main point is to begin to resume, not
merely to resolve that We will do so at some fu-
ture day, but TO commence at once, and how
ever slow the progress, each step will not only
carry us nearer TO the goal, but will impart that
strength and that confidence which will enable
us to reach 1t.
Provision is also made for keeping the cur
rency which this bill proposes to create in circu-
lation until further Legislation by Congress.
There Is no contraction of the currency by its
operation.
The Secretary of the Treasury Is authorized
to reissue these coin notes after they have been
received into the Treasury before maturity in
payment of public dues, or to issue in their
stead the same amount Of like notes ON time.
This discretionary power, although not an i'm
portant feature of the plan, may be found nee
essary TO be used, and no valid objection to its
use exists, as notes received in payment Of pub
lie dues are actually paid or redeemed by the
United States. A like discretionary authority
but not on less than three months, Is to enable
the Secretary to hasten the time for rcsuming, IL
he finds It practicable to do so, after the matur-
ity of the notes first issued. ...
Having thus stated the general provisions Of
the BILL Il II proper to consider what will be its
general effect.
First, can these coin notes be paid according
to their tenorf and second, what will 10 the CT
feet npon the currency OF issuing theml
Let US now see what means the Secretary will
have, at the maturity Of these notes, with which
to redeem them:
The amount of coin the Treasury Janu-
airy |. 1869, was.......... ......... s9s,I6J36]
Deduct coin certificates. ............. l3,053,U02
leaving net balance of.............. S5,T00,2T6
To which wli estimated rrcsipts coin
over expenditures to eni Of the fscal
year ending June 30, lS7o........... $4,000, 900
Which will give the amount IN the Treas
ury on the maturity 81 the first coin
NOES I.s,,,i. NORTHUMBERLAND, liliOo2J6