, 1873-10-27

Tor oxtbpt oil the presumption TINT It was hoard
=. Ho submitted tlo iiguros to 4 New York
fricnn, who spoke OF 1t to a railroad operator at
lid xs away anu and from otler sources @
TINT faot VA wHH co>armod, That went on from
1859 i e 1s1g. tho.,g. iuat after tho war many
small boards y, were in gu which woro gradually
ia gca S iii ittss teas SsE SEh Ex say 5 q% 5 5
had boon laid up in tho South OIL of roaol, Of
tho panic. That accounted for tho etrlugouoy
Of tho last two years. Wkeu the ,pnnie
emo n front 5nef0 go as oooo further IL s, SfGMsl 5 5
roolot money. II in 1s60 1t was aa a loud,
that would mako ssSS0, 100000 now. Probably
about Sl0o, 100000 were required for this daily
Muse. M That waB not Withdrawn, but It was out
amounted to $1oo,ooo, 900. It was scarcely nc,
tive. but was guard for Mlat was 30: 1t could
DO reduced only when tle circulation was ro-
ducod. Hence for two years tho country had
dong bnaineaa on M active currency Of loss taan
dcprociatet currency. With q specie currency,
thoy would not Mood 30 much. Tho currency
was limited BY law md could DO expended by
Congress- only. 1t could not bo supplemented
y gold 30 long as 1t was not rogarded aa money
wo would be at q par with the rost Of tho world.
Gold flowed whore it was most wanted, regard
loaH Of halanoos Of trade. When gold 'vas 30
cheap hero that 1t could bo exported cheaper
roii rns ni,nnnost laro fnrc;1norn 1rn,,lfi Inv u
1v aakinn for pnecie currency, wo asked for tho
3nryost MARTY ~ traio. md froas'on to hon} IN
tho currency OF tho world, aud not be tied down
r,rart,cf, IF honr,];nu would bo contl1i,1cd INV
INV int i'm ooltj wn1,1I ho whnt wnn1d h
hnn1tle11 enp L was Icss dcst1uctibin. Isut Tint
hoarding made no difference. II gold waa wanted
hcre it would flow here or tho, products Of otlr
a,lvor Ind hcen flowing abroad ainco Il ryas tLo
nhrat,cs: thinr wn. Hml nxcnnt bnrIs. Tho
nron1l1m in gold had no relation to tho n,ico of
p,,r cnn,mofiities. rho pricoa OF conmud!!;cr
ti,nn fI'ow ,so,d hv cra;lmSi rea,,n,nton rn',s
inntI hot1 racovo1 L, ftonm voarp E951 nn{1 ia
atnr1inr md cxnnrtcj Eis9, f)0. .a(1 md retainej
on1v rf;s. nm. 0N1 Evan Enriand than. rofainod
no moro Eoja thnn sufiiccd Tor tic wants OF Ior
rwn busfnoas. Il accu,nulatcd till it forced
dnrrn ;ntarnat IN q nnr ccnt mn ti,nn intcroat
ran -, ns t1,o roid f1osrn3 ont nrnin> trha f1nw
of rnd tn tin eon,,trv con, not now io nrreatcl
mi iii lar racaea;tioa I,I hcon mai hv nus
,1ro;lncta T,c,a worn tronoSitionH fnr ronoTcd
lnu"na son,e for ,,n1injcd nu,onuta Tav wom
;,. tan,,ororv ro;os nnd wonf,l i,o nbaorEad ;ntn
{,,';,,na" nn5' ;nTat;nm voniI rnlinw hut t1,ov
1gnniS snon f1Hannnnr and thcv woul1 20 from
mi IN ,yorae and If tlov kart m tho ro.,,it
would bo tho Insolvency OF bauks and commor-
cial mon. 1t was an inevitable result. It such
payments. Tho obstacle to resumption now
wna the immonao amount OF debt everywhere.
Tho announcen,cnt that there would DO rcau1np-
ton at q fixed day Was caution to oyory man 10
look out and rcducc bis liabilities. uo rofcrrcd
to tho small amount of assots to meet the vnst
structure OF instant liabilities. As to tho fourth
section Of the resolutions, 1t WAS really stop
toward absorption, though 1t looked like cxpau-
Bion. It waH simply q sponge to tako up tue
Bumnor surplus. mid also restrained tho 1oaning
power OF tho banks. He moved to amend the
third section by adding TINT, aftor July, 1877,
Treasury notoB should not bo 4 legal tender
except for dues to the United States.
When the Legal l-Iefuef act vas dtscnsaeu IN Con-
gros8 tn l9Gl-2, nearly every ono deprecated
the !egal-teudor clause and defended 1T Only un-
dor tho plea Of necessity. Tho buprome Court
took that ground only as Its Justification. 1t
WAS war power. No such oxigoncy rested On
us now, and If the Board recommended # be
continued, it would induce the world to believe
tho Board WAS doubtful Of tho ability to rcsumo.
Ho proposed to cut tho bridge mud hive no more
legal-tenderH after 1877. 1t was unnecessary to
have them. 1t would retald our progress aud
hamper our credit. Tho problem was difficult,
there wero dangers surrounding it6 solution, but
~ the Msher tue duty deVolVahe on congress- 20
take hotd Or the matter win Prndohco afad u.s.
crction. 30 Lar a8 the board 1ad any power TO
.exert an wholesome influence 1t should 40 IT,
mn. JOHN g. DoRE
said thore were two sides to the question, lie
lad attended tho banquet on tho preceding oyoll-
ing, and asked to talk OH that very subject. The
COMMITTEE had called attention to tue Iemhrks
Of Mr. WllliamH, OF Nov YORK; at the Clearing
Honao meesing, and deslIea MN to Eot some
statlstlcs On Tue matlef ons 1or LICK o. tllno lt
Simply fead the epeeGh lteol1. oh Gonctus1on' nt
saiu no ueslfea TO ca aIlicuhr attcnt1ol TO IN
part which showoa 1has the amount OF cnrIonc!
now IN circulation Was a 1ar ~ IN ao oxcees OF IN
amount 10 1ool,-aomo S!6o,9oo,uou. he thoughs
y was proved beyond uount thnt TIC prounc
tion OF tue country haa increased ID Tar create
proportion thah the capital "htcn was To trans
ACT the bus1ness'
Mr.. Holton here insisted on enforcing the rnl
limiting spoechos. Hiuce they lad but lew houl
left, in order to conclude tlloir deliberations.
1lr. Dore's time WAS extended Ho went OF
to give the gatistics Of tho n1nouat Of grain nnt
c:ttlo received hero since 1857. III view Of tlos
factB, 1t would require moro money to nov
those vast products than hud boon required il
past years. It seemed to him tho wny to briui
down gold to tue value or paper was to stop N
demand foE 1t. bue tle dovernmeut 'ras u
Froateht purohnaor OF gold, ana thus Kept up ~
demand. AS Tor the volume OF currency, III
country never had enough before the war. an'
out lcro drafts on Now York and Boston hGMlTe M
as currency, which was not tho case nov. Th
amount OF currency por capita was far less hes
than in foreign countries with donser Iopula
tlon. It was we'll to hnsten slowly, and there va