Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-01-17
Transportation of Merchandise in
BOnd----The Vienna ExpOsi-
tiOn---AnOther Big Job.
Colorado and 0klOhama In the
HOuse---Durant on the Pacific
ROad----SchOfleld and the
MObilier.
The Refunding Of the Unjust and
Illegal Cotton Tax to be Con-
sidered Next Tuesday.
OOxGREssIoNAL pRocEEDrNes.

CONGRESSIONAL PROCEEDINGS,
N THE SENATE.
Senator Chandler, from the Commit
= tee Oh Commerce, reported an Origina
: bill TO further regulate the transpOrta
tlon Of merchandise in bond, allowing
the substitution of an authenticated Ger
tificate Of receipt Of goods at foreign
ports for the oath of master or mate o
: the exporting vessel as one of the proof
= now required to discharge export bond
Bills were introduced by Senator LO
gan authorizing the Secretary of War Il
erect a monument at Salisbury, NORTH
Carolina, to the memory of the soldier.
who died in prison and are buried there
and by Senator Patterson two bills fol
: the improvement of the haTbor and river
at Washington.
Senator Thurman called up the Buck
ingham bill, providing for a return to
specie payments, and addressed the
Senate upon it.
He said that the resumption of specie
payment was demanded by the public
faith in the public policy and spirit of our
laws individually. Hardships are not
sufficient reason for violation for the
public faith, or disregard of the general
interests or policy of the whole country.
The effects Of specie payments is greatly
exaggerated as TO the persons it will in
jure. Our business men are not only
debtors, but they are creditors. If 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 production merely,
whether as financier or as manufactu-
rer, a mechanic or lab0rer, is injured.
If the nominal value of his production
is diminished, the cost of living and all
that enters into the cost of production.
is diminished in the same way. Ex-
! perience has shown that deprecated
! money is most injurious TO laboring
men, as ii produces false standard of
values, the effect of which is not noticed
/ by laboring man, or by a trader or
/ merchant, even upon current debts and
/ credits. The effect of the specie STAN
| dard will surely be appreciable, for
the nominal loss viii be discounted
in advance, or be divided dur
ing 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 be-
fore the legal tender act took effect. it is
but right that they should be paid in
specie, while those contracted since
have been issued in expectancy of spe-
Gle payments. before this time; still, |
while the effect of a specie standard
upon debt is greatly exaggerated, it can |
not be denied that if it is followed BY |
contraction of currency ii will |
cause much distress and embarrass-
ment to very many who have
contracted debt on currency basis, but /
this argument of hardships will apply
forever; ifw are controlled by it we can
never pay Our pensioners. The lapse of
time will not make it easier, as our
financial condition now is 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 con-
tracted debts on the currency basis.
Again the effect of the specie
standard in producing a cOntrac-
ton Of the currency is greatly
A contraction of cur
rency is not necessarily result of specie
payments. Undoubtedly q contraction
of currency would produce specie paw
ments. 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 1886 and 1857 quietly con
tracted the currency by funding over .
three hundred millions debt of com {
pound interest and other notes, most of :
which part of the currency if, in 1868,
We had, as was proposed in the Senate, !
United States notes to be t
Used for the five per cent. bonds
At par, We would have long since been at [
specie payments. The notes then [
could have been paid out again for the !
payment of current expenses and the |
OF bonds, precisely as now, /
when gold is sold for notes and the L
notes applied to the purchase Of bonds. '
IN this way We could have reached the
Pecie standard. The moment our five '
Der cent. bonds were worth par in gold. I
he advancing credit of the nation :
you'd have lifted our currency to par in /
,old, precisely as it lifted all former n
,onds TO par, or when par in gold; and i
low, when our credit is generally i'm U
,aired by the rapid payment ofl
he debt, as induced by the ad- f
'anced value of all our notes in e
old, we can raise their value to the O
pecie standard much more readily thar
our years ago. Our fallacy lies at the b
Oundation Of the objections to a specie
that it necessarily compefs the
withdrawal of paper currency. This =,
epends entirely upon the amount ne u
essary to conduct the business of the 81
ountry, and the degree of public conf n
ence in the redemption. Mr.. Knox e
OF Currency, in his last an "
ual report, shows that in January. u
582, when specie payments were slis. v
ended, the aggregate circulation of coin n
nd paper was S44S, ,671 ,2l8, or a ratio of r0
II per cent. of the wealth Of the United &C
tates, and that the Circulation n
J the United States, in 1870,
United States notes, bank
otes, fractional currency and spe,ie
as $3.50, 100000 or two hundred and q,
xty-two per cent. OF our wealth. The nv
rculation in the United States per w
IpitG is now less than in France, is tr
-eater than in Great Britain, but is h,
-eater than in either in proportion to ro
le wealth, when We consider the vast re
ltent Of our country, its rapid growth, NJ
llue OF productions and general use of Ell
iper money. 1t is not unreasonable to M
oppose that all of ii now outstanding i'm
IN be maintained in circulation on ar
'ecie standard. II must be remembered i'm
lat the total amount in the United pI
-ates now is 1856, ,0O0, 900. and that A re-
~ lalBG sum VI IL must De retained In
? the banks as their reserve. that IA
rye gold reserves are now held In the sa
easuTy; that notes are widely circula- sa
d and have the confidence of the peo- Or
e, and can be supported by the public ha
edit. Under these circumstances il Is mi
arcely probable that axy considerable IN
m will be presented for redemption,
presented, they can again be paid out liza
lthout contraction of the currency. ce
lth only the change of NOM ri
al values for the real standard of fol
due the world over. The chief re- Sc,
lisite is that the public have assured aIs
nhdence In our ability TO maintain as
resumption. This is indispensable. ro,
Id when II exists actual redemption wi,
payment of coin is eomparatiyeIy be-
re. This confidence or credit can be an
ven by either Of three expedjents: IN,
rst, the maintenance In the Treasury IJr
q large reserve in coin. Second. an- Or
ority In the Secretary of the Treasury or
sell bonds for coin to maintain q re- w
mpuOn. Third, to authorize an ultI- eia
ate redemption either In coin or MI
nds. The first is subject to objection. bu
at II keeps idle vast sum only needed col