Wyandot County Republican. [volume] (Upper Sandusky, Ohio) 1869-1903, 1869-02-18

distant exchanges, and paper money |
convertible into coin has been used
for exchanges from hand to .hand.
When you authorize contracts in
gold and make demands for gold
you at once unlock for daily use the
coin now horded in private hands.
You can then provide the most i'm
portant agency Of modern times-a
convertible paper currency, always
equal in value to gold, its true repre-
sentative, easy to guard. conceal,
and transport. 1t is only by restor-
ing gold contracts that you can
safely avail yourself of all the mul-
tiplied uses of paper money. Then,
and not until then, you can issue
paper money based upon gold. The
gold now lying idle in the Treasury
may then be utilized, made to pro-
duced an interest by the isue ofcoin
notes based upon it, and thus enter
into actual circulation and graau-
ally be made to perform all the uses
of money now performed by a de-
preeiated currency. This is the
basis of the fourth section of the
bill, which utilizes the gold by the
isue of gold notes based upon it,
and their application to the pur-
chase of bonds and the reduction
of interest. ga--f,.
And the right to make contracts
in gold may now safely and prop
erly be extended to banks organized
under the national banking system.
Upon deposit of bonds existing
banks or new banks may be author
lied to issue gold notes eqpal to
sixty-ive per cent. Of the value Of
United States bonds deposited to
secure their circulation. Their pay-
ment will be in coin, but in all 9th
er respects they may be subject to
the general provisions and limita-
tions OF the banking act. Many of
the banks, especially in commercial
cities, will gladly avail themselves
of such provision to withdraw
their present circulation and substi
tute gold notes convertible on de-
mand into coin. With such pro-
vision and on such basis the sys-
tenn may be free, and thus all the
embarrassing questions about the
inequality of the distribution of
banking circulation will be avoided.
A right conferred upon all, without
limit as to amount and upon regula-
tions applicable to all, would at
once secure to the South and west
new banking facilities, and would
rapidly tend to substitute coin OF
its equivalent for legal tender notes
and without the severe process Of
contraction. The objection made.
that this would create two curren
cies Of unequal values, applies as
well to the present state of the cur
rency, for we have now two curren
cies, of unequal value-gold an6
legal tenders. t
| If we are sincere in wishing spe
Gle payments we must not only
multiply the demands for coin, WE
must encourage coin contracts
issue coin notes both by the United
States and by the banks and thus
without contraction dispense with
the use of the inferior and depre
ciated currency. .....-
The superior value of coin notes
their use in commercial cities, there
convenience in the gold producing
States, will soon give them highe
credit, and secure them in ever,
part Of the country. am confiden
that under such system the nation
al banks will if allowed, and befor
specie payments are resumed, sub
stitute coin notes for their presen
t circulation, and that, two, withou
diminishing the aggregate of circu
lation- Many of them have nov
reserves and profits enough to max
the requisite deposit of additions
f bonds; and the gold certificate
now issued from the Treasury nigh
, be used for their coin reserve
without creating new demands 70
, coin.
There is but one other consider
alton wish to urge in favor of tn
sections Of this bill relating to golt
contracts and gold notes, and tina
: grows out of the doubt that rest
upon the validity Of the legal -tende
| act. We must not forget that cur
rency contracts depend not upol
| the agreement of parties, but entire
lily upon the validity Of that act
f This has always been doubted, an,
l is now contested before the Suprem
e Court. 1 remember very well til
= discussions in the Senate when thi
5 act passed. Its validity was the
: denied by Judge Collamer and othe
5 able jurists, and it was only main
, tanned by myself and other Senator
, from the imperative necessity @
t supporting armies then in the field
: This necessity has long since ceased
, There can be no pretense that as t.
: future contracts by the United State
r or by individuals there is any neces
Y sity that the public credit should an
longer take the place of real money
V The legal tender act is only materif
, as it affects existing contracts. !
= it wise to continue a measure onl
: justified by grave public necessity
now when the necessity has passed
5 1t may be that the Supreme Coul
e will deny the validity of the legal
t tender act, or limit its operation t
: existing contracts made since it
| passage. 1t may subject currenc
!. contracts to enforcement in coin.-
f Is it not wiser to bridge over thi
9 uncertainty by authorizing the ad
= justment of this matter between tn
8 craditOr and dahtnr2