Wyandot County Republican. [volume] (Upper Sandusky, Ohio) 1869-1903, 1873-02-13

not they are entitled to public confidence;
but this present connection with an aggre-
gate surplus fund, far beyond the difference
Between currency and coin, justifies the con-
viction that they will merit the puDnc ex-
pectations. With specie resumption the
system becomes free. The fluctuations OF
their currency win be but the healthy eob
and flow of commerce. Resumption then
will become fact and will check the ten
dency of country banks to employ their
currency in Wall street speculation. AS
they may redeem in coin or in United States
notes, they will have the benefit OF the al
tentative provided as to United states
notes, SO that the sacrifice of their securities
that generally follows specie payments dur
ing panic can go no further than the pay
ment of their bonds for their notes par for
pal. Again, the specie standard will also
bring gold and silver coin into actual use.
The amount now boarded has been variously
estimated, and with that deposited in the
Treasury and in circulation in California,
cannot be less than $500 ,000, 900. This will
probably take the place of legal-tenders as
bank reserves, and thus add to the present
volume of currency. Even If specie pay
ments should cause retirement in coin, the
funding of S50, ,000, 600 in United States notes
in their place will be more than filled by the
coin let loose from its present Punishment.
/ therefore conclude that the fears OF evil
results from q specie standard are greatly
exaggerated; that there will be no contrac,
ton of the currency, no disturbance OF
real values or suspension of business; but
that our present United States and bank
notes will pass as usual In the ordinary eX-
changes, Increasing the value of all products
here or abroad equal to the real money OF
the world, and with no taint of dishouor OF
depreciation about it.
Mr.. Sherman continued at length, show
ing the obligations and necessity Of specie
payments, and how the anticipated evils oil
among the innumerable schemes proposed
for resumption several were practicable, but
careful consideration of the subject leads
him to the conclusion that the simplest and
most expedient manner is to declare by law
that on and after the first day of January
next the United States will redeem its notes
with coin or at the option of the Secretary
of the Treasury, with its bonds of convent
ent denominations bearing five per cent. in
terest in coin. 1t will provide also for the
possible but not probable contingency that
more notes will be presented than can con-
veniently be paid in coin. It is founded
upon plain equity that if we cannot literally
coin, we will at least give to
the public creditor who holds notes of
United States bond bearing commercial
value equal to gold. If then these notes are
currency, they will be presented for redemp-
ton and ought to be redeemed. If not their
value will be appreciated to gold standard,
and this is specie payment. The modifica-
ton of the banking act can properly be post
poned until future time, when the practi-
cal effect of the specie standard upon the
United States notes will test the ability OF
the banks to maintain their notes at par
with United States notes. Whether they
should be relieved from maintaining so large
a reserve? Whether there should be one
center of redemption? are the questions OF
practical legislation for the future. The mo.
ment the notes are redeemable in coin the
banking system ceases to be limited in the
number and distribution of the banks, and
they will stand like all other business pur-
suits-open to all who will give requisite
security for their notes, and will obey the
general law.
Mr.. Sherman reported, from the Commit
tee on Finance, the following substitute fol
Mr.. Buckingham's bill:
Be it enacted, etc, That on the 1st day of Janu
ary, 1874, the Secretary of the Treasury is author
lied and required to pay on demand at the offies
of the Assistant Treasurer in the city of New Gor
to any holder of United States notes to the amount
of $1,000, or any multiple thereof in exchange fol
such notes an equal amount of gold coin of the
United States or in lieu of coin he may, at his op
ton, issue in exchange for the said notes an equa
amount of coupon or registered bonds of the
United States in sucn form as he may prescribe
of denominations of $50 or some multiple of thai
sum, redeemable in coin of the present standard
value, at the pleasure of the United States, after
ten years from the date of this issue and bearing
interest, payable quarterly in coin at the rate o
five per centum per annum; and the Secretary o.
the Treasury may reissue United States notes sc
received, or, if they cancelled, may issue
United States notes to the same amount either tC
purchase or redeem the public debt, or meet cur
rent payments for public services; and the
said bonds and the interest thereon shal
all taxes duties of the United States, as well a.
from taxation in any form by or under State, mu
nicpal or local authority; and the said bonds shal
have set forth and expressed upon their face The
above specified conditions. and shall. with thei
coupons, be made payable at the Treasury of thu
United States.
SEC q That from and after the first day of Jul.
next, the limit of the aggregate circulation of th
| national banks now prescribed by law is repealed
and all banks thereafter organized shall deposit a
security for their circulating notes bonds of tn
United States issued under this act or under tn
act entitled IAN act to authorize the refunding
the national debt approved July IA, 1870.
SEC. 8. That all banking associations which shal
on and after January, 1874, redeem their circu
| lating notes at such localities as now OF may b.
cen ofefer OF in Gnted states "T legal f fende
| notes, shall be exempt from the require
ment under the existing law as to holding
| Ps0Uided, That nothing herein contained shal
| authorize any national gold bank established un
der an act entitled "An act to provide for the re
demption of three per cent. temporary loan Gel
tifcates and for increase of national bank notes,
| approved July 10, 1870 to redeem their circulai
ing notes in anything but gold coin of the Unite
States.
| SEC 4. That Section of the act entitled "a
act to provide for the redemption of three pc
cent. temporary loan certificates, and for an il
crease of national bank notes." approved July !;
| 1870, be- and is hereby, repealed.
Sec. 5. That banks without circulation may b
organized under the provisions of an ''act to pre-
vide national currency secured by pledge c
United States bonds and to provide for the circI
lation and redemption thereof" approved June
| 1864, upon deposit with the Treasurer of tn
| United States of not less than $4,000 in Unite
States registered bonds as provided in Section
| of that act.