The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1874-05-07
NATIONAL FINANCES.
P''riq'n''-l Fq Yet. GiIin. & ne z.r-''s yR..- yR..-

discussion. The following presidential
message shows the result
10 the Senate Of the United States:
Herewith return the senate bill
number GIT, entitled ''An act to fix the
amount Of United States notes and cir.
collation. Of national banks. and for 9th,
er purposes, without my approval.
In doing SO, I must express my regret
at not being able to give my assent to 8
measure which has received the sane
tion of q majority of the Legislators
chosen by the people to make the laws
for their guidance, and have studious-
ly sought to find sufficient arguments
70 Justify such assent, bat unsuccess-
fully. Practically It is a question
whether the measure under discussion
would give an additional dollar to the
irredeemable paper currency of the
country or not; and whether by requir-
ing three-fourths of the reserves to be
retHined by the banks, and prohibiting
interest to be received on the balance,
it might not prove TO be a contraction.
But the fact cannot be concealed that
theoretically the bill increases the pa
per circulation one hundred million OF
dollars, less only the amount of reserves
restrained from cirelation by the pro-
Visions OF the second section.
The measure has been supported on
the theory that it would give increased
circulation. 1t is fair inference, there
fore, that if in practice the measure
should fail to create the abundance of
circulation expected of it, the friends
of the measure, particularly those out
of congress, would clamor for such in
fation as would give the expected re-
lief. The theory, IN my belief, is a de-
parture from the true principles of f.
nance, national interest, national obli-
cations to creditors, congressional prom
ises, party pledges on the part of both
political parties, and of the personal
views and promises made by me IN eve
~ annual message sent to congress and
in each inaugural address. In my annu-
al message to congress in December,
1863, the following passage appears
g Among the evils growing out of the
rebellion and not yet referred to, is that
Of an irredeemabIe currency. 1t is an
evil which I hope will receive your
most earnest attention. It is your duty.
and one of the highest duties of the
government, to secure the citizen a me-
dunn of exchange of fixed, unyaryiup
value. This implies return to a specie
basis and no substitute for it can be de-
vised. It should @ commenced now
and reached at the earliest practicable
moment consistent with fair regard to
the interest of the debtor class. Inme-
diate resumption if practicable would
not be desirable. It would compel the
debtor class to pay beyond their con-
tracts the premium of gold at the date
of their purchase, and would bring
bankruptcy and ruin to thousands
Fluctuations, however, in the paper
value of the measure of all values,
gold, is detrimental to the interests of
trade. It makes the man of business
an involuntary gambler, for in all sales
where future payment is to be made
both parties speculate as to what will be
the value of the currency to be paid. I
recommend to you then, such
as will insure q gradual re-
turn to specie payments and put an i'm
mediate stop to fluctuations in the value
Of currency"
still adhere to the views then ex-
pressed. AS early as Dec. 4, 1865, the
house of representatives passed a reso-
luton by vote of IA yeas to 6 nays,
in the views of the secre-
tary of the treasury in relation to the
necessity of q contraction of the cur
lion of specie payments as the business
interests of the country will permit,
and pledging cooperative action to this
end as speedily as possible. The first
act passed by the forty-frst congress on
Bhe 18th day of March, 1869, was as fol-
lows
"An act to strengthen the public
credit of the United States. Be it en-
acted, ETC., that in order to remove any
doubt as to the purpose of the govern
nent to discharge all its obligations to
the public creditors and to settle con-
dieting questions and interpretations of
the Law by virtue OF which such obliga-
lions have been contracted, it is hereby
provided and declared that the faith Of
The United States is solemnlyl pledged
10 the payment in coin or its equivalent
Of ell the interest bearing obligations,
except in case where the law authorizing
the issue of any such obligation has ex-
oressiy provided that the same may be
paid in lawful money or other currency
than gold and silver, bnt none of said
interest bearing obligations not already
due shall be redeemed or paid before
unless at such time as the
United States notes shall be convertible
into coin at the option OF the holder, or
unless at such time the bonds of the
United States bearing a lower rate of
interest than the bonds to be redeemed
san be be sold at par In coin; aud the
United States also solemnly pledges its
iaith to make provision at the earliest
practicable period for the redemption OF
United States notes IN coin" FE
This act still remains as a continuing
pledge of the faith of the United States
to make provision, at the earliest prac-
5icable moment, for the redemption of
the United States notes IN coin. A dec
Iaratie n, contained in the act of June
20, 1854, created an allegation that the
total amonnt of United states notes is
sued, or to be issued, should never ex-
,aed four hundred millions of dollars.
The amount In actual circulation was
reduced to three hundred and
ifty-six millions of dollars. at which
point congress passed the act of Feb.
7, 1868, suspending the future reduc-
lion of the currency. The forty-fOur
millions have ever been regarded as a
reserve, to be used only in case of
such as has occurred on sew
aral occasions, and must occur when,
from any cause, revenues suddenly fall
below the expenditures and such 3 re-
serve is necessary, because the fraction
j currency, amounting to fifty millions,
Is redeemable in legal tender on call
[t may be said that such 8 return of
fractional currency for redemption is
but let steps be taken for
return to specie basis, and it may be
.ound that silver viii take the place of
he fractional currency as rapidly as it
,an be supplied.
When the premium on gold reaches a
sufficiently low paint with the amount
IF United States notes to be issued per-
within proper limits, and the
treasury be so strengthened as to be
able to redeem IN coin on demand, it
will then be safe TO inaugurate system
If free banking with such provisions as
% make compulsory the redemption of
he circulating notes of the banks in
,oin or United States notes, themselves
and made equivalent to coin
As q measure preparatory to free
banking, or for placing the government
n condition to redeem Its notes In coin
It the earliest practicable moment, the
,evenues of the country should be IN
,rsased so as to pay the current sx-
,enses, provide for the sinking fund
,eauired by law, and also surplus to
le retained IN the treasury IN gold. I
IN not a believer in any artificial methed