River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1874-12-18

thing having nearer relation 10 coin; not Is
II possible for the banks or people 20 resume
go long as the large amount OF irrcdet mablC
paper now 10 circulation continues % be by
Law legal tender for an private debts with
reference bob 70 the pact and the future
While this state 81 things lasts gold VII con-
iinue TO flow from Us, and lind employment
where the natural laws OF trade, uucbsiructed
by restraining legislation, make its daily ust
Indispensable
TIE Secretary. therefore. recommends con
gress 10 provide By law that after an early and
fixed dag United states notes shall cease 20 ne
gal tender a. to contracts thereafter made.
But this provision should not apply to official
salaries or 10 other ordinary expenditures Of
the government under then existing con-
tracts or appropriations Between the day
thus 10 be fixed anu the time % final resumT
ton a sufficient period should elapse TO nablC
the people and banks TO prepare tor the latter
~ such era Iuai processes ~ business as will
neither lead 10 violent contraction IN credit
and values nof suddebly increase the
obligations q! dehi5rs. The sudden aud inn
mediate arpr cation OF the paper dol ar 10 lite
par yslue IA g0ldis not only no necessary a.
ement Of REDEMPTION, but. Tar as practica
be, should be avoided. II during the period
OF the war the legal-tendcr acts operated as
a bankrupt law, compelling redI.Urs to give
acquittanc uTon the receipt 1T less than The
toll amount Of their debts, this s no reason
why the las for resumption should now
compel debtors at once % pay essentially
more than they have contracted 10 pay. The
adOI ton of such measures as will
ut suddenly increase the obligations o,
debtors, will 90 Tar 10 allay and dlsaIm
whatever popular opposition to resumption OF
specie payment may now exist, and, besides
would be but Just to the debtor class. The day
hcm which new contracts must be discharged
~ coin should be fixed sufficiently far in ad-
vance to give the people and the banks
time to understand II aud prepare themselves
ioT It. II is believed that not many months Will
be necessary for that purpose; but, to avoid
the misehiefs already indicated, this day
shOuld preeede the day Of final Tesump-
ton by longer period. The time should not,
in the opinion of the Secretary, be extended
teyOud three years; aud might safely be made
AS much less as IL the judgement of Congress
would sufficiently protect the interest OF
debtors and avoid the evils OF too sudden
The law should also authorize the immed-
ate conversion of legal tender notes into bonds
bearing a low rate of interest, which, while
inviting conversion, should not be 50 high az
TO appreciate the legal tender notes rapidly,
and thereby operate progressively on the debt
or class. As an additional inducement to the
of United States notes into these
bonds at a low rate Of int rest, authority
should be given for making them security tor
the circulattok OF national banks. The law
should further provide lie means for the re-
of sucn notes s NAV be presented
for that purpose when the period Of resunip-
ton shall have been reached. To this end,
the Secretary should be authorized to make a
loan not exceeding the total amount of notes
unconveTted at the time OF resump-
ton, less the surplus revenue to be made APP
plIcdbe to such resumption. 1t Is probable
that the gradual aud continued revival OF
business will so far increase the revenues that
a large loan Will not De required for this pur
pose; but it il advisable that the Secretary
be authorized 10 make 1t IN order TO meet the
OF a failure of sufficient surplus
revenues. Such a loan should be made by ~
suing bonds to run for such time as the Wis
dom OF COngfess may suggest, and to be dis
posed of from time to time as the necessities
OF the case may require. In the ooinlon OF
the Secretary, these bonds should run for a
long period. and should bear interest ut
rate not exceeding the lowest rate which the
government may then be paying in refundiag
its six per cent. securities. Any substantial
or useful movement for resumption necessarl-
ly involves supplying the treasury with in
creased amounts OF coin, either by increased
revenues OF an adequate loan. The present
condition of the credit OF the government,
which would be further enhanced by the adop-
ton of measures for return to specie basis,
leaves no room for dou bt that a loan tor such
purpose would be readily taken at a low rate
OF interest. Measures should also be adopted
paTatory to resumption on their part.
But the 5, cIetary does not deem 1t proper
to pursue the matter into further detail. Ii
Congress shall conclude, as he earnestly
hopes it wall, that the time he's arrived for the
enactment OF law having for its object re-
sumption of specie payments, its own wisdom
will supply the necessary methods. That
which is of the highest importance is the
adoption OF Me definite policy of resumption.
In view OF tlie great ana pressing importance
~ the speediest return TO specie payment
cons lnent with ST adiuess OF business and
avoi lance of violent and sudden contraction,
discussion of mere details IN advance becomes
OF little practical consequence. What is de
manded by the best interests OF the govern
ment and the people, and By the highest con-
sideratiOns of virtue aud morality, is, that
Congress shall undo that state of things
which only the necessities of war justified or
reduired in this respect. A wise modification
of existing statutes. which neither enable
nor permit the executive tranch of the gov
ernment to effect the restoration OF a sound
currency. VIII leave the laws trade free to
resume their operations, and many matters
of detail will adjust themselves. When the
Cove rnmeat shall have resumed specie pay.
ment il may be expected that gold Will flow
into the country IN obedience to the law at
supply and demand; the export of our gold
product will greatly diminish, and the mil
lions Of gold--Yhich now constitute ouly a
commodity OF trade will resume ts proper
functions by becoming again a part Of the
circulating medium. With the adoption OF
the policy of resumption, free banking may
safely be allowa, aud the deficit of the actual
amount of coin available for cir eulati0n can
be supplied by bank notes convertible INTO
coin, in lieu of an incOnvertible paper cur
rency.
The business of the country has not yet
from the disasters of the last years
financial panic, the causes OF which it is by
no means difficult to trace. Ii was the direct
and immediate result of that excessive de vel
opment of speculative enterprises, OVERHEAD
ing, and initiation of credit which invariably
follow large issues of inconvertibe paper
currency. The almost boundess resources
and energies of the country must compel the
gradual re-estabhshmeI ( of business, but
capital, with ITS accu toned senstiveness to
danger. is slow to return to the avenues OF
trade Values arc tiuctuating and uncertain
Labor receives its reward IN currency that
is unstea ~, and whose purchasing power
almost daily. Neither the reward OF
labor nor the value OF commodities IS meas
ured by auy certain standard.
The enactment of a law having Tor its pur-
nose the substitution OF 3 soun and stab
me dunn Of exchange for an Irredeemable pa
per currency will tead 10 restore confidence
and thus cause a revival OF industries AMI gen
eral business.
Here VIII be no better time in the future TO
enter upon the work OF returning to a specie
basis. and he Secretary feels that he cannot
too strongly urge the adoption of the meas
ures he has indicated, or such others as will
more certainly lead to the desired end
ECONOMY IN PUBLIC EXPENDITURES.
In connection with this subject. the Secre-
tary deems il proper To suggest, tor the con-
sideration of Congress, the importance OF the
most rigid ecc nomy in the public eXpendi-
lures. Lavish outlay of mOnev by the Gov
leads n PorrpSu0uHiup habi.G of eX-
travasance among the people. An era OF in
dation is always one of extravaganza. At such
a time costly public improvements Of doubt
full utility are likely to DC undertaken and 9TH