The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1874-04-29
RICHMOND,

the same may be paid in lawful money,
F, or in other currency than gold and
silver. but none OF said interest bear
| ing obligations not already due shall
be redeemed or paid before maturity,
unless at such times as the United
States notes shall be convertible into
coin at the option of the holders or
unless at such times as bonds Of the
United States, bearings lower rate of
interest than the bonds te be redeem
ed can be sold at part in coin; and the
United States also solemnly pledges
its faith to make provision. at the ear
Hest practicable period, for the re-
demption of United States notes IN
coin" 914-b sea IA
This act still remains as continu-
ing pledge of the faith of the United
States to make provision at the ealli-
est practicable moment for the re-
demption of the United State notes in
coin A declaration contained in the
act of June Goth. 1864, created an OBJ
legation that the total amount of Uni
ted States notes issued, or to be issu-
ed, should never exceed $4O0,000, 600.
The amountin circulation was actually
reduced to 1856. .oO0, ,oG0. at which point
Congress passed the act OF February
4th, 1868, suspend ing the further re-
duction of the currency. The $44,-
0OO,OO0 have eyer been regarded as
reserve to be used only in case of an
emergency, such as has occurred on
several occasions, and must occur
when, from any cause the revenues
suddenly fall below the expenditures,
and such IL reserve is Necessary be-
cause the fractional currency, amount
ing to S5O,000, ,OG0, is redeemabie in
legal tender on call. 1t may be said
that such a return of fractional CUR
rency for redemption is impossible;
but let steps be taken for return to
a specie basis and it will be found that
silver will take the place of fractional
currency as rapidly as II can be sup
piled. When the premium on gold
reaches a sufficiently low point, with
the amount OF United States notes 10
be issued permanently within the
proper limits, and the Treasury s so
strengthened as to be able to redeem
them in coin on demand. it will then
be safe to inaugurate system Of free
banking, with such provisions as to
make compulsory redemption of eircu-
lating notes of banks IN coin, or IN
United States notes. themselves re-
deemable and made equivalent in coin.
AS n measure, preparatory to free
banking, or for placing the govern
ment in condition to redeem ITS
notes into coin at the earliest practic-
able moment, the revenues of the
country should be increased so As to
pay the current expenses, provide for
the sinking fund required by law. and
also for surplus to be retained in the
treasury in gold.
am not a believer in any artificial
method of making paper money equal
to coin, when coin is not owned or
held ready to redeem the promises to
pay. Paper money is nothing more
than promises to pay, and is valuable
exactly in proportion of the amount
of coin that it can be converted into.
While coin is not used as 4 circulating
medium, or the currency OF the COM
try is not convertible into it at par. it
becomes an article of commerce, as
much as any other product; the sur
plus will seek foreign market, as
will any other surplus. The balance
of trade has nothing to do with the
question. The duties on imports. be-
ing required in coin, create a limited
demand for gold, and about enough to
satisfy that demand remains in the
country. To increase this supply L
see no way open but by. the Govern
ment boarding. through the means
above given, and possibly by requiring
the national banks TO aid it,
1t is claimed by The advocates ef the
measure herewith returned that there
is an unequal distribution of the bank-
ing capital OF the country. was dis
posed to give great weight to this
view of the question ut first, but on
reflection it will be remembered that
there still remains $1,000, 900 of au-
thorized bank note circulation assign
ed to States having less than their
quota of bank circulation, and they
have the option of SO. .OO0, eco more,
to be taken from those States having
more than their proportion When
this is all taken up, or when specie
payments are fully restored or are IN
rapid process of restoration, il will be
the time to consider the question of
more currency. U. >. GRANT.
-a EXECUTIVE MANSION, April y, "A.