The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1874-04-30

Ov the banks ana pTOniDNiHX iutSicse
to be received on the balance, it
might not prove a contraction, but
the fact cannot be concealed that
theoretically the bill increases the
paper circulation one hundred millions
of dollars, less only the amount of re-
serves restrained from circulation by
the provisions of the second section.
The measure has been supported
on the theory that it would give an
increase OF circulation. 1t is a fair
inference therefore, that if in practice
the measure should fail to create the
abundance Of circulation expected of
it, the friends of the measure. partic-
ularly those out of Congress, would
clamor for such imitation as would
give the expected relief. The theory
in nv belief is departure from the
true principles finance, national inter
est, national obligations to creditors,
congressional promises, party pledges
on the part of political parties, and OF
personal views aud promises made by
me in every annual message sent to
Congress and in each inaugural adj
dress.
In nv annual message to Congress,
December, 1869. the following pas
sages appear: "Among the evils
growing out of the rebellion, and not
vet referred to. is that of irredeema-
BILE currency. 1t is an evil which
hope will receive your most earnest
attention. Il is the duty, and one of
the highest duties of the Government
to secure to the citizen medium OF
a fixed and UNIV arying value. This
implies return to a specie basis and
no substitute for it can be devised
1t should be commenced now and
reached at the earliest practicable
moment consistent with fair regard
to the interest Of the debtor class
An immediate resumption, if practi-
cable, would not be desirable. 1t
would compel the debtor class TO pay
beyond their contracts the premium
on gold at the date OF their purchase,
and would bring bankruptcy and ruin
to thousands. The fluctuations, how
ever, in paper are detrimental to the
interest of trade. 1t makes the man
in business an involuntary gambler.
for in all the sales where future pay
ment is to be made, both parties
speculate as to what will be the value
Of currency to be paid and received.
l earnestly recommend to YOU then
such Legislation as will insure grad
ual return to specie payments and to
put an immediate stop to the tluctu-
atoms in the value of currency.
Istill adhere 10 the views expressed
as early AS December 4'h, rs. The
House of Representatives passed =
resolution by 4 vote of l44 to g con
curing in the views of the secretary
in relation to the necessity of tn
contraction of the currency aith a
view to as early resumption oil
specie payments rs the business in
terests Of the country would permit
pledging cooperative action 10 this
end MS speedily as possible The
first act passed by the Forty Firsi
Congress on March 18th, 80. was "An
act to strengthen the public credit of
the United States" II Here the act
referred to is inserted i'll full This
act still remains as a continuing
pledge of faith to the United States
to make provision at the earliest
practicable moment for the redemption
Of United States notes in coin The
declaration contained in the act June
Goth, "a, created an allegation that
the total amount of United States
notes issued should never exceed
four hundred millions of dollars
The amount in actual circulation was
reduced to three hundred and fifty
six millions, at which point Congress
passed All act, February 4th, 1863,
suspending any further reduction of
the currency. The or,yfour millions
has ever been regarded as reserve to
be used only in the case of an emer-
gency, such as has occurred on
several occasions and must occur.
when, from any case the revenues
suddenly fall below the expenditures,
and such a reserve is necessary be
cause fractional currency amounting
to fifty millions is reieemablc in
legal tenders on cali. II may BE- said
that such return of fractional cur
rency is improbable, but let steps be
taken for return toa specie basis
and it will be found that silver will
take the place OF fractional currency
as rapidly as it can be supplied.
When the premium on gold reach
es sufficiently low point, with the
amount of United States notes to be
issued fixed permanently within prop.
er limits. and the treasury SO
strengthened as 10 be able to redeem
them in coin on demand, it will then
be safe to inaugerate a system of free
banking with such provisions as to
make a compulsory redemption Of
the circulating notes of banks in coin,
or Of United States notes themselves
redeemable and made equivalent to
coin. As measure preparatory to
free Banking or for placing the gov
eminent in a position to redeem its
notes in coin at the earliest practical
BILE moment, the revenues Of the
country should be increased so as to
pay the current expense, provide for
the sinking fund required by law,
and also surplus to be retained in
the Treasury in gold. ! ain not be-
lever in any artificial method Of
making paper money equal to coin
when the coin is not owned or held
ready to redeem the promises to pay,
for paper money is nothing more than
promises to pay, and valuable exactly
in proportion to the amount of coin
it can be converted into. While coin
is not used as circulating medium
or the currency of :he country is not
convertible into it at par, it be-
comes an article Of commerce as much
as any other product, and the surplus
will seek foreign market as well as
other surplus. The balance OF trade
has othing to do with the question of
duties on imports being required in
coin to crearte a limited demand for
Il Il