The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1873-10-31

tilt puf poses Ol currency, uillOuntluS I'D
$92, 6S7, 442 Ga, and the sum of the cir
culating medium will be found to have
then reached $3.50, $50, 1880, and shows
"A contraction by the Secretary of $372,-
35i, 779.2S in its total amount. This was
pointed out Mt the time during the de-
bates of the Board of Trade Conven-
ton which met Mt Boston in June, 1868.
An article in the atlantic ReUieD, for
May of this year, renews the same argu-
ment.
This was the first approach to specie
payment. The country Mt large had
felt the pressure of the screw, but had
not been able to discern precisely from
what quarter the pinch came, the con-
traction being confined to those outside
forms of Treasury obligations, which,
though not currency in the strict ac
ceptation of the word, were still used as
such in the larger transactions of trade
and financial exchange. When, in
time of general pressure, the currency
itself became the subject of the pruning
knife, the country not only felt the
knife, but saw how it was handled, and
refused to submit longer to the "heroic
treatment" Up to this period, July,
1868, it will be seen that the debt itself,
that is the funded debt, though mate
rally re-arranged, had been slightly in
creased. In July, 1865, the sum of the
indebtedness not used as currency, was
81 ,931 OH ,211. 80, of which $3.50, 000, 900
were 100 Treasury notes. In 1868,
July, the same class of debt reached
81, 154, S64, S47.2S of which SIT, 900, 900
and some fractions, of 7.30 Treasury
notes, an increase of 100000, 600.
During all this period the entire in
debtedness of the Treasury had fallen
from $2,757, $3.50, 81. 43 to $2,636, 320,-
1867, a decrease of $l21, 1868, 6O6. rs.
Checked in his efforts to approach
further to specie payment by direct con-
traction, the country having distinctly
shown its determination to "grow up"
to the existing circulation without
further change, Mr.. McCulloch set him
self to work to reduce the debt itself
The statement of July, 1869, made
shortly after he left office, returned the
amount as then outstanding at 81, 1885,
002, 4S0. So, total reduction since the
Inauguration of his policy of 1924 423,-
39S.63. The country will some day
recognize the full measure of the SER
vices that this brave Secretary rendered
in the beginning of such wise policy
The Administration of Gen. Grant
under Mr.. Boutwell, followed the policy
of its predecessors, leaving the currency
untouched and continuing the approach
to specie payment by the collateral road
of reduction of Government indebted
ness. On the 1st July, 1873, there had
been still further reduction of indebt-
edness of 1899, 03S,60
Mr.. Secretary Richardson has con-
tinued faithfully and bravely in the same
direction. His reduction since July
alone reaches the sum of 81, 100, 975
the total reduction since 1865 reaching
the sum of $61S, 1915, 6732 and leaving
the debt within the easily-managed
millions. This has been the second app
prOach to specie payment.
The country is now ready for the
third great series of steps toward re-
sumption. If we have now "grown
up to the sum of our circulating me-
dunn, now is the time to prepare to
introduce some solid strength into that
medium. When gold and currency float
at par together and money is abundant,
a gradual withdrawal of currency will
not be felt, since gold will fill its place.
Values will remain unchanged and re-
sumption will gradually become posi-
BILE. When gold has fairly taken its
place in sufficient amount to warrant
the experiment, there may be legal re-
sumption, and the people may then
decide which of the two currencies they
prefer-greenbacks or national bank
notes. The exchange of greenbacks for
the national bank currency will be easy.
The Treasury will only have to redeem
the bonds on which the bank issues are
based, paying for them with convert
IDLE greenback currency, which would
thus become the only paper money in
circulation, and by the same process
extinguish $350,000 900 of the United
States debt-a desirsble financial oper-
alton in itself.
Are we ready for this last step? the
Mird approach to specie payments. 1t
seems that we are not far from it. Our
exports are enormous our imports are
light, and promise to be small for some
time. The credit of importers will not
allow of other result-they perforce
must contract their business. Gold is
falling, and would long ago have touched
par, VI polnI near III, DuI lOr tlle HIS
taken policy of the Secretary. The DC.
tober statement shows that while his
gold balance fell from $S7, 900, 900, as il
stood Sept. l, to $50, 900, as on the
1st October, the portion of that coin be-
longing to the Treasury increased from
$40, 100000 to SAC, 000,0 900, and that
while the Coin Certificates were called
for to the extent of $40, 100000, the real
gold strength of the Treasury increased
"a, ZOO, 000-about the amount of his
customs receipts.
| Before the meeting of Congress gold
will probably be floating at par. The
} Treasury can only absorb moderate
amount-the balance must take its
chance of the market. 1t cannot es
cape us, unless we again initiate the cur
, rency. The Secretary may yet find ne
J better use for his coin than to redeem
, the amount taken from the famous re
, serve. He cannot use it to better
purpose.
, 1t will be for Congress to make sucl
legislation as will then authorize the
, Secretary to withdraw his greenbacks
so fast as coin is at hand to replace
them, and thus take the final steps IL