Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-05-01

fractional currency, fourth issue. q 35s, I57 40
National bank notes in circulation,
IS per COmptroler's report. 80, 952 $50 %
Grand total $3.50 ,65l,6 26
The population Of the United States, l
shall assume, Is, In the year 1872, forty
so that there are not quite twenty
dollars per capita Of currency.
Il will be observed in this statement that
1921, 952, 03020, or nearly one-half, is not
legal, but tolerated currency sanctioned
by law for convenience, ss alleged. For
whose convenience? Does not the legal
lender possess higher value to the holder?
VIII 1t not pay bis debts7 sit not guarded
better by the law? Surely it cannot be ar
yued that it Is for the interest Of those who
are simply holders.
Again, the existence Of the national bank
note makes two classes in your currency,
tends to destroy uniformity, and through
frauds and defalcations Of officers, agents,
ETC., and failures OF the banks, tends to de-
stroy the stability Of your currency. And
this want Of uniformity and stability is at
the expense of the labor of the country.
Again, there Is greater liability TO coun-
fact, the multiplicity Of these
It Is believed, encourages and
assists the counterfeiter, and whatever loss
is occssioned thereby falls upon, not the
bank, but the labor Of the country.
Placing, Mr.. Speaker, an estimate Of loss
by this difference in the two
classes Of currency at "a per cent. per
annum, you have about two million dollars
that the labor Of this country pays for this
currency Of alleged convenience. In having
but one class, with the improvements that
are being made in the manufacture of bank
paper, the people will not be SO liable to be
imposed upon by counterfeits; in relation
TO which beg leave to call the attention Of
the HOUSE to the remarks made by the gen.
tlemsn from Ohio (Mr. Monroe) the other
day in advocacy to the proposition ''tO pro-
vide for the retirement Of worn and multi
lated currency" which we're in these words,
and authorized By the Treasury Depart
msnt:
"But q more important object Of this bill is TO
protect the people against oounterfeiting.
some OF the bank notes now in circula-
ton have been counterfeited "a such q
manner rs TO give the officers of the
Treasury Department some solicitude. This fact
Is brOught'tO light in the note Of the Secretary
OF the Treasury which l have already read.
Dangerous commercials exist, and We have res
son to fear that there Will be more of them.
New plates and new printing will OF Itself put
the cOunterfeiters at fault for g long time. But
r more important protection against counterfeit
ing is found in the fact that should this bill be-
come q law, the Secretary Of the Treasury Rili
feel authorized 10 print the new Issue upon the
used for nearly three yesTs in printing the legal
tender notes. The result OF this experiment has
been most encouraging. Thus lar few attempts
st cOunteTfeiring have been made, and those so
imperfect as 20 be readily detected BY persons of
average experience in the use Of money. The
Of the special fiber pSper requires
large apartments, machinery moved by steam
pure spring wster, and, altogether, such an ag-
RregatiOn of buildings, material, and WoTkmen
~ would excite suspiciOn when employed for
dishonest purposes. COunterfeiters, therefore,
cannot engage In this business without deteC-
ton, even II we were to suppose them to have
capital enough for the purpose"
Now, although it is pretended that the Ma
tionsl Banks pay out Of The taxes levied
upon their circulation, ETC., the expenses Of
the notes printed by the United St ties for
their use, yet when The comparatively made
quats AZ they pay Is regarded, 1t viii be
estimated by the common sense Of the
country that the people really pay the bur-
den Of this accommodation to the banks.
In truth, there is now pending bill re-
ported from the committee, to whicn
| have referred, which seeks to tax the peo-
pie nearly one million dollars in order to
supply these institutions with new notes in
lieu OF those mutila;ed. So then, Mr..
Speaker, for this alleged currency of con-
venience the labor Of the people is taxed
for losses that accrue from want OF stability
and equality in value with the legal-tender
notes, fOr1Osses that occur from facility IN
counterfeitiDg, and for expense attending its
issue, including the printing OF notes and
keeping up q Bureau Of Currency, all oil
which, think, do not overestimate when
reckon it by millions per annum, and
which may be saved to the people by the
substitution Of higher, safer and more
valuable currency, tO-wit, that of legal
tender notes; reasons sufficient, It would
seem, to insure the favorable consideration
Of the first proposition submitted. But, in
this connection, II In addition thereto, and
in making this substitution or exchange,
the sum Of S21, 000,0 per annum can be
taken from the annual taxes required Of
the people, (as shall maintain it can law
fully be done.) then there should be no
hesitation il adopting the proposition.
This leads me to the consideration OF the
second proposition. The amount Of Ma
tIonRl Bank notes in circulation on the 30th
day Of September, 1871, was S322,952,-
$50 20. Now, IL this amount is retired il
will REQUIRE the issue of like amount OF
ereenbacks or IegSltender notes, and is to
that extent apparently an increase of the
national debt; that Is, inssmuch as 1t is not
proposed TO diminish the quantity Of cur
reucy. But il, in making this issue, with it q
like amount Of the Evs-twenty bonds are paid
and retired, there win be no actual increase
of the natl nal debt, but rather a decrease,
since interest on that amount would cease
upon payment. Without disguise this prop
osition involves the question whether the
five-twenty bonds may be lawfully paid In
Iegal-tender notes. 1t is the history of each,
that they had q common birth, by the act
Of 1852. Il is manifest by that act that
the Iegal-tender note was made ga legal
tender at its face value for all debts, public
and private, except duties on imports and
interest on the public debt" The express
declaration is made that it was legal-ten-
der for al public debts, and the five
twenties were then being made one, and
the exception Of interest on the public
debt 0aQ no Ot0eE mednlllS LuaA W give
emphasis TO the declaration. There can be
no want Of faith to the public creditor in
this mode Of payment: he purchased the
bond with this note, and in his purchase so
made contracted by his payment Of the
note to receive It when rendered. | waive
all consideration of its value Of his legal
tender note at the time, and the amount
he has received on his bond since, the con-
sideration Of which shows that he has nc
equity beyond the letter Of his bond. This
view Of the relative rights Of the United
States and the bondholder is fortified and
sustained by eminent men in the Republi.
can party, to whose opinions beg leave &c
refer. sH
senator Morton, the now recognized
leader Of that party, said IN his place IN The
senate of the United States that
: al am anxious 70 have the bonds paid in gOlC
or ifa Equivalent and that viii be the result whvl
We return 70 specie payment, rs h9ne We sool
Shali. hI.t when aIn asked 10 say that II is tn
original law Of the contract creating them
cannot do Il without changing my convictions a
to tue Constructors Of the statutes which hRv'
sntsrt&ned 9rcm the arskS fa -lA
Senator John shsr1nao, Who foT seVera
Vsay1 has isrSsa C7,asruaR Of The Einaugi