Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1873-02-14

not they are entitled to public confdence;l
but this present connection with an aggre-
gate surplus fund, far beyond the difference |
between currency and coin, iustiaes the con-
viction that they will merit the public ex-
pectations. With specie resumption the
system becomes free. The fluctuations of
their currency will be but the healthy ebb
and How 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
pai. Again, the specie standard win also
bring gold and silver coin into actual use.
The amount now boarded has been variousy
estimated, and with that deposited In the
Treasury and in circulation In California,
cannot be less than $500, 100000 This will
probably take the place OF legal.teuders ae
bank reserves, and thus add to the present
volume OF currency. Even II specie pay
ments should cause retirement In coin, the
funding of $50, 900, 600 In United states notes
in their place will be more than filled by the
coin let loose from It's present banishment.
| therefore conclude that the fears Of evil
results from o specie standard are greatly
exaggerated; that there will be no contrac.
tion 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 eT-
| changes, increasing the value OF all products
here or abroad equal to the real money OF
the world, and with no taint Of dishonor or
| depreciation about 1t.
| Mr.. Sherman continued at length, show
ing the obligations and necessity OF specie
| payments, and how the anticipated evils OF
| resumption could be avoided, and said that
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 tive 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
perform our promise by payment in
the public creditor who holds notes Of
United States a bond bearing commercial
value equal to gold. If then these notes are
in excess of the wants of the people for a
currency, they will be presented for redemp-
tion and ought to be redeemed If not their
/
and this is specie payment. The modihca-
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 oi
practical legislation for the future The mo
meatthe 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 IL 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 ofic'
ofthe Assistant Treasurer in the city Of New York
to any holder of United States notes to the amoun
OF $1,000, or any multiple thereof in exchange 70
such notes an equal amount of gold coin of th
United States or IN lieu of coin he may, at his op
tion, Issue in exchange for the said notes equa
amount of coupon or registered bonds of th
| United States. In sucn form as he may prescribe
Of denominations Of $50 or some multiple of tina
sum, redoemable in coin of the present STANDARD
vane, at the pleasure of the United States, afte
ten years from the date OF this issue, and bearn
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 81
| received, or, il they are cancelled, may issu
United States notes to the same amount either b
purchase or redeem the public debt, meet cur
rent payments for public services; and tn
said bonds and the interest thereon sha
tbe exempt from the payment o
all taxes or duties of the United States as well a
from taxation in any form by or under State, mu
nicipal or local authority; and the said bonds sha
have set forth and expressed upon their face tn
above specified conditions. and shall. with thei
coupons, be made payable at the Treasury of tn
United States.
SEC Q That from and after the first day Of Jul
next the limit of the aggregate circulation Of tn
national banks now prescribed by law is repealed
and all banks thereafter organized shall deposit
security for their circulating notes bonds OF th
United States issued under this act under tn
act entitled An act to authorize the refunding
the nationSl lt debt approved July a. 1870 -.
on and after January, 1874, redeem their circl
latng notes at such localities as now or may !
hereinafter here designated by law, either
notes, shall be exempt from the requir
ment under the existing law as to holding
! reserve Of lawful money of the United State
PfOyided, That nothing herein contained aha
authorize any national gold bank established nj
der an act entitled "An act to provide for the r
demption Of three per cent. temporary loan oe
! tifcates and for increase of national bank notes
approved July II, 1870, to redeem their cireula
ing notes in anything but gold coin OF the Unite
4 States.
,. | act to provide for the redemption of three p
cent temporary loan certificates, and for an /
9 crease OF national bank notes." approved July
| 1870, be, and is hereby, repealed.
/. SEC 5. That banks without circulation may
: organized under the provisions of an "act to pr
S vide national currency secured by pledge
I United States bonds and to provide for the circ
: lation and redemption thereof" approved June
. | 1864 upon deposit with the Treasurer OF q
| United States OF not less than $4,000 in Unit
d States registered bonds az provided in Section
| of hat act