, 1873-01-18

Senator Sherman lnH reported from tho |
Senate Committee OH Finnnca q bill providing
for tho eventual resumption Of spocio payments,
Tho bill fxes Tho LIST day Of January, 1874, when
tho Secretary Of tho Treasury shall ray on do
1anutl, to tho holder Of United Stateg Troasury
notes, when presented in Bums Of $1,000 Or
mn!tiplos thorcof m equal amount Of gold coin;
or he n.ay ut his option issue III oxchnngo for
h,.ch notes bond in suc! form as ho may think
I..t.~4. L:,t r~-- -;t-- +-4 ~cte- J..1:'
next, tho limit upon tho aggregate crcula-
tion Of tho National Danl1s shall cease, and oil
banks shall deposit National bonds for tho 30
curity Of their circulating notos. In rc-
porting this bill, Mr. Sherman stated no
moro than tho truth whom lo declared TINT tho
resumption Of specie payments was demanded by
public faith, public policy, and tho spirit of our
laws. Who insisting that individual hardship
was not Bufllciout reaaon for the violation Of
public faith, ho took occasion to show tho fa1lacy
of the supposed injury to the " dobtor GLASS;"
All mon in business arc necessarily both debtors
md creditors, and tho profit and loss Of IN ad-
vance to specie values would bo shared by thom
equally. Its effect would be to destroy fictitious
values, and place income md expenditure upon
n ronl valuo. Thoro can DO no greater OWL i'll
Aicted upon bnsinoss .than tho use Of
deprcciatcd currency. Tho only evil con-
gnQuonco Of resumption Of HpDcio
payments would DO that resulting from
| a contraction Of tho currency but even this
must come at Romo time, and Gun bo mot now as
| we'll as at any limo. But even this anticipated
| cyil is greatly exaggerated. contraction Of
the currency would OF itself restore spocio pay
nlonta It is tho direct means to accomplish
that end. III 1866, tho Government reduced tho
currency in circulation by funding over throo
hundred millions Of compounl-intorcnt and
other noton. Tho rapid payment Of tho lobt has
advanced tho value OF both notes and bonds,
and it is much oaaior now to bring tho value Of
tho notes up to par III gold than it was oven
t}yo years ngo.
There is groat mistake in lllo widespread
notion that return to specie standard noces-
EARLY involves reduction Of papor currcucy
II tho amount of currency DO not in excosh Of
the wants Of the country, md thoro bo no tfi-
Guilty as to tho redemption Of TINT curroncy tho
return to specie payments will not reduce The
amount of tho papor in circulation. In 1869,
WHOM npecio payments woro suspended, tho coin
aud currency In circulation was equal to ait por
cent Of tho national wealth, willie in 1870,
though greatly increased, it waa ouly zee per
cont Of tho natlonal wealth. at this time
tho total amount Of United statos notoB in cir
culallon in 1850 900 900, of which largo amount
is held, under tho law, by tho banka as ro-
soryo and large gold rosoryo il held by tho
Treasury. It Is not therefore, probable that
tlloro 10 any such oxcoaB Of currency aB will in
duco my goriouB presentation of groonbacke
for redemption. If presented, tloy can DO paid
out again in public disbursements, aud in thif
way thero call bo no serious contraction Of tlle
currency III circulation. Tho Quo thing noodoi
for tho uucconHful and oasy resumption Of epccit
pnymcnts III conldonco III tho ability Of tho Gov
ernnlont to maintain 1t, anl tlin confidence, hIr
Sherman thinks, DO secured otlAor by, !, tllt
maintenance III tho Troasury Of largo rosorys
! of coin; 2, an authority with tho Secretary tt
roll bonds for coin; and, 0, authority for m ultl
,lato redemption in honda or coin. The first i
objectionable, booa.lso ltkoopa tlat sum oflnono.
, lille; and tic Hccond because, aa tho powor wonl
, only bo exercised in times OF stringo1Ipy, tl
= bonds might bo aacrllcel Tho third mode re-
, qniros no rosorye, md pncos tho note on pa
with tho National bonds. With specie rosnml
y tlon, Tho National Banking eystona will bocon
!, froo, anl tho bank currency will o1pant
or contract al public necossltioh will roqnlrt
Az H,lcl balln may rodoom In coin or notes, tho
l. can Buaan no sorlouH loas OIL thoir hocnritio'
l. becasBo it cannot exceed MI exchange OF tho
o louf]a for thoir uoteB ut par. Tho reaunntin