Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-01-17
CONGRESSIONAL.
Resumption Of Specie Payments
The Views Of Senator Sherman.
Resumption Promised without Con-
traction.
SENATE.

/
| traction.
SENATE.
WASHINGTON, Jan. 16.-A bill was in
troduced authorizing the Secretary OF War
to contract for the building Of seventy light
draft snag boats for the Mississippi, Missou-
ri and Arkansas rivers.
A bill was introduced by Senator Logan
authorizing the Secretary of War to erect a
monument stSalisbury, N. c., to the mem
ory of soldiers who died in prison and are
buried there.
The Vienna imposition.
Senator Schurz, from the Foreign Rela-
tiOns Committee, reported the House Dill
for representation Of the United States at
the Vienna Exposition with an amend
nent increasing the appropriation from
500, 1000 to 100000.
Mr.. Chandler opposed any appropriation,
because experience demonstrated that Amer
leans participating In such exposltions had
their inventions appropriated by foreigners.
MIR. Salisbury moved to make the amount
$3.50, 900 instead OF 100000.
The amendment of the committee max
ing the amount 100000, was adopted.
kIr. Carpenter said he had voted to IN
ere ase the amount to $500 900, because
if the appropriation was to be made at all
that was little enough, but so long as the
Washington Monument stood in its present
unfinished and dilapidated condition,
/ A Shame and Reprcach
to every American in the eyes of every
foreigner in our land, he would never vote
| $500, 900 or any sum to be sunk in show
fO Eurono Ja thay offarad ON avnapdpn
appropriating 100000 for the completion
of the Washington monument.
Mr.. TrumbEll predicted that before the
Vienna exhibition business was ended it
| would cost the U nited States S3,OO0,000.
At the expiration of the morning hour the
| bill went over.
Sherman ON Specie Resumption.
Mr.. Sherman called up Mr.. Bucking-
| hams bill providing for return to specie
payD lents, and addressed the Senate upon
it. He said that the resumption of specie
pay1 nent was demanded by the public
faitti, public policy, and the spirit Of our
laws. Individual hardships is not a suffi.
cier.t reason for violation of public faith,
| or q disregard of the general interests or
policy of the whole country. The effect of
| specie payments /, greatly exaggerated,
| in business are not only debtors, but
they are creditors. II they are injured by
| adding to the burden of their debts, they
are benefited by the increased value Of
their credits. No one engaged In produc
ton merely, whether as financier or manu-
| facturer, a mechanic or laborer, is injured;
for if the nominal value of his production
is diminished, the cost of living and all that
i ant iUf "a 20
| diminished in the same degree. Experience
most injurious to the laboring men. 1t
produces q false standard OF value, the
effect Of which is not noticed by q
merchant. Even upon current debts and
| surely be lnappreciable, for the nominal less
will be discounted in advance or be divided
during the gradual appreciation Of paper
money. The greater burden will fall upon
debts running long period of time as upon
corporation bonds and mortgages. As to
those in existence before the legal tender
act takes effect, it is but right that they be
paid in specie, while those contracted since
have been issued with the expectancy of
specie payments before this time. Still,
| LAO OhCSb vi q
debt is greatly exaggerated, it cannot be de-
contraction ..of the currency it would
! cause distres. and embarrassment to very
many who have contracted debt on a cur
rency basis. But this argument of hard
ship will apply forever. If we are contron-
ed by it, we can never pay our pensioners.
| The lapse of time will not make it easier.
Our financial condition is now so much
stronger that we can afford to do right, and
yet in such way as to injure in the least
possible degree those who contracted debts
on currency basis.
Again, the effect of specie standard in
producing contraction of currency is great
ly exaggerated. A contraction Of currency is
not necessarily result OF specie payments
Undoubtedly a contraction of currency
would produce specie payments. 1t is the
most direct road to specie payments,
and If the paper money in circulation is
in excess Of the wants of the community it
is the only road. We in 1866 and 1867
greatly contracted the currency by funding
over $500, 1900 debt Of compound inter-
est and other notes, most of which were
part of the currency. If in 1868 we had,
as was proposed in the Senate, authorized
the United States notes to be used for five
per cent bonds at par, we would have long
siuce been at specie payments. The notes
then could have been paid out again
for the payment e of current ex-
penses and the purchase of bonds,
precisely as now when gold is sold for notes
and the notes applied to the purchase of
bonds. In this way we could have reached
a speciei standard the moment our i've per
cent. bonds were worth par in gold. The
advancing credit of the nation would have
lifted our currency to par in gold, precisely
as it lifts all torms Of bonds to
par or when par in gold.
And now, when our credit is generally in
proved by the rapid payment of the debt,
as indicated by the advanced value of our
notes in gold, we can raise their value to the
specie standard much more readily than
four years ago. One fallacy lies at the
foundation of the objections to specie
standard that it will necessarily
compel a withdrawal of paper currency.
| This depends entirely upon the amount ne
cessary to conduct the business Of the
country, aud the degree of public con-
fidence in their redemption. Mr.. Knox, the
Comptroller Of the currency, in his last an-
nual report shows that in January, 1862,
when specie payment were suspended, the
aggregate circulation Of coin and paper was
S448,67I, ,2IS or ratio of 2.7l per cent.
of the wealth of the United States, and
that the circulation in the United States in
1870, including United, States notes, bank
notes, fractional currency and specie, was
$740, 1000, 900, or 2.62 per cent Of our wealth.
| The circulation in the United States, per
capita, is now less than in France and great
er than in Great Britain, but greater than
in either in proportion to wealth. When
we consider the vast extent Of our country,
its rapid gro WITH, the value Of productions
and the general use of paper money, it is not
unreasonable to suppose that all of 1t out
standing can be maintained in circulation
on specie standard. 1t must be remem-
bered that the total amount in United
States notes is $3.50 600, 900; that very large
sums must be retained by the banks as
their reserve; that large gold reserves are
now held III the treasury; that the notes are
widely circulated, have the confidence
Of the people and can be supported
by the public credit. Under these circum-
stances it is scarcely probable that any con-
siderable sum will be presented for re-
demption. If presented they can again be
paid out in the course Of public disUurse-
ment. Specie payments can thus be re-
sumed without contraction Of currency
and with only q change of the nominal
1f 10,