The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1874-04-26

sure algradual return to specie pny-
ments, and put an immediate stop to
fluctuations in the currency
| still adhere TO the views then en-
pressed. As early rs December i, 1865
The house Of representatives passed II
resolution by vote of l44 yeas to q
nays, concurrlng in the views of the
secretary of the treasury in relation to
the necessity Of contraction Of the
currency, with u view to ~ early Il re-
sumption of specie payments rs the
business interests of the country will
permit, and pledging cooperative action
to this end as speedily MS possible, The
first act passed 10y the fOrty-lirSt con-
gress, on the 18th day of March, 1869,
was rs follows;
"An act to strengthen the public
credit Of the United States. BE ii en-
acted, etc, That in order to remove any
doubt asto The purpose of the govern
ment 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 OBJ
ligatiOuS have been contracted, it is
hereby provided and declared that the
faith of the United States is solcmnly
pledged TO the payment in coin, or its
equivalent, of all the obligations of the
United States, and of all the interest
bearing obligations, except in eases
where The law authorizing the issue of
auy such obligations has expressly
provided that the same may be
paid in lawful money, or in
other currency than gold and
silver, but none of said interest bearing
obligations, not already due, shall be
redeemed or paid before mafurity, I'M
less at such time the United States
notes shall be convertible into coin at
the option of the holder or unless at
such time bonds of the United States
bearing Il lower rate of interest than
the bonds TO beredeemed can be sold ut
par in coin. And the United States
also solemnly pledges its faith to make
provisions ut the earliest practicable
period for the redemption Of United
States notes in COIN
This act still remains rs Il continuing
pledge of the faith of the Omitted States
To make provision, at the earliest prac-
ticable moment, for the redemption of
the United States notes in coin. a dee
luration contained in the act of June
20, 1864, created an obligation that the
total amount of United States notes,
issued or to be issued, should never eX-
ceed S400,000,000. The amount In ac-
tual circulation was actually reeuced to
S356,ON, 900, at which point congress
passed the act of February 1, 1865, sus-
pending the further reduction of the
currency. The $4,000 600 have ever
been regarded rs n reserve, to be used
only in case of an emergency, such as
has occurred on several occasions,
and must occur when, from any
cause revenues fall below expen-
ditures, and such Il reserve is
necessary, because the
FRACTIONAL CURRENCY,
amounting to $50, 900, 900 is redeemable
in legal tenders on call. 1t may be
ssd that such a return of fractional
currency for redemption is impossible,
but let steps be taken for return TO
IA specie payment basis, and it will be
found that silver will take the place of
fractional currency us rapidly as it can
be supplied. When the premium on
gold reaches sufficiently low point,
with the amount of United States notes
to be issued permanently within proper
limits, and the treasury so strength
ened as TO be able to redeem them in
coin on demand, it will then be safe
TO inaugllrate system of free banking,
with such provisions rs to make COM
pulsory the redemption of the circulat-
ing notes OF banks in coin or United
States notes, themselves redeemable
and made equivalent to coin. As q
measure preparatory to free banking,
or for placing the government in CON
dition TO redeem its notes i'm coin Mt the
earliest practicable moment, the reve-
nues of the country should be increased
so as to pay the current expenses, pro-
vide for the sinking fund required by
law, and also u 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,
for paper money is nothing more than
promises to pay, and is valuable eX-
actly in proportion to the amount of
coin that it can be converted into.
While coin Is not used as n circulating
medium, or the currency of the colln-
try is not convertible into it ut 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
of trade has nothing to do with the
question. The duties on imports being
required in coin, create limited de-
mand for gold, and about enough to
satisfy that demand remains in the
country TO increase this supply. see
no way open but by the government
holding, through the means above
given, and, possibly, by requiring the
national bank to aid.
1t is claimed by the advocates of the
measures herewith returned, that there
is an unequal distribution of the bank
ing capital of the country. | was dis
view of the question at first, but onIre-
Election it will be remembered that
there still remains four millions OF
authorized bank note circulation as
signed to states having less than their
quota of bank circulation, and have
the option of twenty-five millions
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, will
he the time to consider the question of
more currency. Y. s, GRANT