Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1873-01-30
Resumption Of srscle
Payments.
THE VIEWS OF. SENATOR
Oh TIE sUEEECT.
z Bill Presented Embodying q
New Plan.

= AtsAAe
In the Senate OF the United States,
Mr. Sherman, whose position at the
head OF the Finance Committee Of that
body gives sn additional interest to his
views OF national questions, called up
the bill recently submitted By Senator
Buckingham providing for the re-
Eumption Of specie payments. and ad-
dressed the Senate thereupon.
Hesai;E that The resumption Of specie
payments was demanded by tae pub
lie faitil, public policy. and spirit of
CUR laws. Individual hardship, Is not
4 sufficient reason for the violation cf
public faith or disregard OF the gsa eral
interests Of policy of the whole country.
The effect OF specie payments is greatly
exaggerated s5 to the persons it will
iEjure. Our business men are not only
the debtors, but they are the credit
or5 If they are lnjored hy adding to
the buIdsn OF their debt, sh.y ale BEN
eattcd by the increased valus OF thsir
credits. No one engaged in produc-
ton merely, whether as fnancisr Or
manufacturer, "a mechanic or iabo-er, is
injured, for il the nominal value OF the
production i. diminished, the cost Of
| living, and Ill that enters into the cost
| Of pro oiuction, is diminished in some de-
gree. Experience has shown that de-
preciated meney is mCst injurious to
labodn- men. 1t produces false
standard Of value, the ei5scs of which
is not noticed by laOoriDg man, or by
| trader, or q merchant. Even upon
current debts aud credits the effect ofa
specie standards will merely be ap-
preoiahIe for nominal loss and will bs
| discounted in advance or bo divided
during the grsiual appreciation of pa
per money. The greater burden will
fall upon debts running q long period
of time, RS apon corporation honda and
mortgages. As to thoee in existence
before the Le2si-tender Act took effect,
it Is but right they be paid in specie;
while tho:s contracts sincs have been
Issued in expectancy OF speci. pay
nlents before this time; still, ~hils the
effect OF specie standard upon debt
Is greatly exaggerated, it csanot be
/ denied that il it is followed by contrec-
ton Of currency it will cause distress
and embarrassment TO ssEy many who
have contracted debts On the currency
basis, but the arganeat OF hardship
wilt apply forever. II ~e are e0n;foii-
ed by is 1s can never psy cur pension
ers. The larss OF time will not make
it easier. Cur financial condition is
now 40 much stronger that We can az
ferd to do right, and in su5h way as
to injure In the least possible degree
those who contracted debts on the cur
rency basis.
Again, the effect Of 3 specie standard
in producing the contraction OF curren-
cy is greatly exaggerated. Il contTac-
ton Of currency /. not necessarily re-
suit ofspecie payments. Undoubtedly
contraction Of currency' would pro-
0uce specie sayments. It is the most
direct road to specie payments, and if
| the paper mones in circulation is in
excess ofthe wants Of the community,
it is the only road. We ia. 1866 and
| 1857 quietly contracted currency by
funding ovor three hundred millions
of the debt Of compound interest and
other notes, most of (which we're part of
currency. Ii, In 1858, VIC had, as was
proposed in the Senate, authorized
United States notes to be used for the
five per cent. bonds at par, We would
| have long since been at specie pay
menta. The notes then could have
| been paid out sgain for the payment of
current expenses, snd purchase bonds
precisely a. nov, when gold is sold for
notes and the notes applied to the pur-
chase Of bonds. In thi. way Ie could
have reached q .pecie standard the mo-
ment our fve per cent. bonds were
worth par in gold. This advancing
credit OF the nation would have lifted
our currency to par in gold precisely as
it lifted all forms Of bonds to par, or
when psr in gold; and now, when our
credit is generally impaired by the
rapid payment Of tho debt as induced
by the advanced value Of our notes in
gold, we can raise their value to spe-
Gle standard much more readily than
four year. ago. One fallacy lies at the
foundation Of our objection, to specie
stan dard that it will COM
pei the Withdrawal Of paper currency.
This depends entirely upon the amount
necessary to conduct the business of
the country and the degree OF public
confidence in the redemption. Mr.
Knox, Comptroller Of tbs currency, in
his last annual report shows that in
January, 1862, when specie payments
were suspended, the aggregate circula-
ton ofcoin and paper was si48, ,671 ,218,
or ratio OF 97l per cent. Of the wealth
of the United States, and that the cir
cuiati0n in the United States in 1870,
including United States notes, bank
notes, fractional currency and specie,
was $3.50, ,00o,000, or 262 per cent. of our
wealth. The circulation in the United
! States, per capita, is now less than in
France, and greater than in Great
Britain, but greater than either in pro-
portion to the wealth. When we con-
slider the vast extent of cur country,
its rapid growth, the value OF its pro-
dGctions, and general use Of paper