The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1873-10-30

Mr., Boutwell,. ex-secratary OF the
treasury, deaivered one of the Galaxy
course Of Lectures as the church Of Dis
eiples, on finance, the panic. and its
remedies. Judge Edward PierTeponi
presided and introduced the lectarer
THE idea Of having .paper carreney
broaghs to equal value viii coin, BIr.
Boutwell, said: ST make a distinction
between resumption Of specie payment
and equilizasioa and co1nrDsrcial value
1f paper currency OF the country with
coin. The consideration of the latter i
more important than the actual resump-
ton of specie payment, which don't
look on as desirable. It is not practi-
cable that the banks shall resume specie
payments, but the government. I ex-
pect il the banks are required to redeem
their currency in legal tender or specie
practically, we have resumed, for banks
as well asfoF the eountFy.s The Atlantic
cities are passing through severe anan
cial crisis, and propose to deal with
some of the eauses. First, we have a
paper currency of more than 500, &c.,
600 It is not possible, think, TO say
whethert that currencyis in excess or not
There are those who demand eoItrac-
tiOn as a means Of resuming specie pay
ments, and those who demand expan-
sion, as do, for the relief of the coUn-
try from the present condition Of things
Suspension of specie payments is due to
three causes. the first, rather a eonse-
quence of the two which follow, is de-
probation Of credit Of the country.
In 1859 in coin bonds of the United
States. principal and interest payable in
coin, was here worth 80 in the hundred,
or at a discount OF eighteen or twenty
per cent, and the obligations Of the
country were not payable in coin.
Duringthe last four years this has been
remedied; as to interest bearing obliga-
tions they are at par in this and thechief
financial countries of Europe. I wish.
to correct an error as to their value. A
few months since when the French loan
was put on the market, the French 8 per
cent. bonds were taken In excess Of the
amount offered, while ours was sub
scribed for IN moderate sums. The DIFF
ference was that their bonds were put
into the hands Of bankers at SO or 81
cents on the dollar and sold for 81 or s5
cents, while ours we're sold at 100 cents
on the dollar, and there was an element
Of speculation in theirs which didn't en-
ten alto ours.
Another circumstance which has con
tributed to the present state of things
was the excess of the volume of paper
over the actual wants of the country.
During the war paper money was issued
in vast qusatities and while no one was
able to state mathematically the law Of
relation between the volume of paper
money that may be circulated and spe-
| Gle payment maintained, yet unquestion-
ably, there is such n law. You may
carry paper currency to a certain point,
but beyond that you cannot maintain
specie payments.
Take our volume of paper to-day,
and no one can tell whether it is in ez-
/ cess of that amount. For third rea-
son, which is, the balance has been
against rs largely for many years,
We have not considered the losses du-
ring the four years Of the war, losses of
the cotton crop, withdrawal of the north
from active pursuits; millions of men
non-producing IN the field. The failure
of banks to maintain specie payments
was due to transient causes, but the in
ability OF the country TO resume and
maintain il to-day is due TO exhaus-
ton, followed by the Chicago and Bos-
ton calamities, by which millions worth
of property were destroyed.