The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1869-12-30

!, amounts shall constitute fund equal te
G that which would have been created i,
there had been no delay in the execution
| of the law.
: The depreciation of currency is due t.
7 two causes first, an excessive issue, and
] secondly, to the want of faith in the Gov
T ernment, and the extent of the infueRct
OF the first named cause cannot be seccr
tanned until the second is removed sub
, stantlally. Whenever our credit shall
be 30 much improved at home and abroad
that holders OF eur bonds are disposed X
retain them when the public mind 10 ex
cited upon financial subjects, we shall be
able TO judge more accurately the extern,
OF the over issue of paper money. Il il
also true that the quantity Of. currency
necessary for the transactions of tho baSi-
ness Of the country cannot be fixed aocu,
rately. Since the close Of the war the
wants ofthe states Of the South havo in
creased, and consequently large amour:
OF currency hac been withdraw from
other sections to supply the demand there
created. The amount necessary for the
purposes Of the South will steadily in
crease for the next two years. The con
struction of the Pacific Railroad is likely
to result in the substitution of paper for
coin by the people Of the Pacific coast
1t is probable that tho demand for paper
for that purpose will not bo less than
| @30,OOO,000; rs consequence, very
large quantity of coin will be withdrawn
| from circulation, and thus, practically
the coin will be increased upon the Az
lantic coast, and the paper circulation in
the States east of the Rocky Mountains
will be materially reduced these changes
will tend 10 determine the difference
between paper and coin.
The ability Of the country to resume
payment will NOT DO due to any special
legislation upon that subject, but to the
condition Of its industries and to its iRaA-
cial relations to other countries. These,
of course, will be more or less dependent
On the general policy Of the goverEncnt.
The war exhausted the country Of its
matsYial wealth, aEd the States Of the
South were literally Impoverished A
necessary condition for the resunpticn Of
specie payments was the development Of
the industry of the nation, beth South
and North, and the consequent accunule.
ton of movable products Of industry to
such en- extent that our exports of thoce
products shonld be equal, substantially,
to our imports 90 long as it is necessary
TO pay for merchandise imported by the
transfer Of government bonds or other
evidences Of indebtedness to other coun-
tries, 20 long it will be impraeticable to-
resume and maintain specie payment.
When the products Of inductry export
cd shall be equal, substantially, to the PRO
ducts Of other countries iHported, there
will be no deraand for specie for export
except what may arise from the ciroum-
stances, that eur bonds held abroad arc
sent home, sold in our market, and the
proceeds exported in coin; whom the
credit Of the country ahall be fully estab-
lished in Europe, and there she'll be nc
doubt either Of our ability or disposition
10 meet ell of our obligations, bonds here
tofors and new to large extent held by
merchants and bankers, will be Transferred
to capitalists for permanent iAvcstment
when this change shall have taken place,
the probability Of securities being sent
heme under the influence Of political or
financial disturbances in England will be
very light, and when, as . concurrent
fact, our exports, exclusive Of public secu-
rites, shall be equal TO our imports, spe.
Gle payments may be resumed without
even . temporary embarrassment to the
business Of the country.
Under these circumstances it does not
seem to me TO be wise to authorize the
funding of the whole amount of $40 bonds
which, as is now anticipated, will be out
standing on the first Of July next, but
that $3.50, o00,00oa at least should be suffer
cd to remain, either for purchase or re-
demption previous to 1874. Should the
sum Of $3.50 100000 be left for that pur-
pose, the entire public debt WOULD be in a
condition to be easily redeemed between
1874 and 1881 the 1910 bonds could be
paid and provisions also made for the re
demption of bonds which will become duo
in the year 1881 It may be wise to re-
ducs the proposed loan to $1,000, 600, 900,
which would then leave for payment pre-
vious to 1881 the sum Of abont $670,000,-
600, or hardly moro than $o0,000,000 g
year. Assuming that the proposed lean
will be for an amount not exceeding 81 p
90, 100000, recommend that it be offered
in three classes Of $400, 100000, the first
class Of $500, 100000 to be payable in ff-
teen years, and to be paid in twenty years
I The second class Of $500, 100000 to be
payable In twenty years, and to be paid in
twenty-five years. The third class of $400
100000 to be payable in twenty-five, and
/ to be paid in thirty years. The essential
conditions of the new loan appear to me
to be these First that the principal and
, interest shall be made payable in coin
second, that the bonds known as 5-2(
| bonds shall be received in exchange fol
: the new bonds; third, that the principa
be payable in this country and the inter
!, est payable either in the United States o.
s in Europe, as the subscribers to the loa1