Wilmington daily gazette., 1874-02-16
THE CURRENCY.
SPEECH or HON. EFT SALISBURY.
IN TIE SENATE FEBRUARY IS, 1874.
(Extaet from the Congressional Record oflith.)

Mr. President, there is one other effect
sure to follow an increase in the volume of
the currency which Is self-eYident and need
not be enforced by argument. 1t is this it
postponcs the return OF specie pay
ments. 1t with the present circulation the
is unable 10 redeem lis promises,
will not a.furlher increase of the currency rem
der it still less able? We have now paper
currency OF over $3.50, 900 900 while the whole
of coin in the country is estimated at
$50. 100000. If every dollar OF this coin be
longed to the Government, it would only be
able to redeem one-fifth OF the currency for
which II is responsible. Is it not evident,
that u further increase OF the cur
rency must of the necessity defer the time
when the resumption of specie payments can
be anticipated?
And now, sir Is it not desirable to return
to specie payments? Can you hope to have
any improvement in the financial affairs ol
this country, while the circulating medium Is
fuctuating in value, and liabal TO be sttl fur
ther deprecated by the combinations of cap-
tarlsts and spectators? Gold coin is the
recognized standard throughout the world. by
which values are determined and measured,
and until We get back to this standard, until
We place our currency upon basis where its
value will approximate TO coin, we must eX
pectnot Ouly depreciation and Ir fuctuation in
its value but a corresponding tluctuatIon IN
the values OF every species of property. sta
billty in values Is essential to Il healthy con-
dition in business, and without it there can
be no security or safely even for the most
prudent and careful business man in the cOun-
try.
have no sympathy with those who are
ready.to renounce gold as the true standard OF
value in this country, and who believe that
any other standard which might be ordered by
Congress would be as effectual for the deter
mination of value as The precious metals. Such
an idea ignores the common Judgment of man
~ n. hn
substance for the measurement of values and
If attempted 10 be put into practice would
prove as Intellectual and ruinous as it is vision
aay and decluslve in theory.
turn now, Mr. President to another remedy
suggested in this debate one that was enforced
in very able argument by the chairman of the
Finance Committee at the fast session, and which
is certainly favored in his exhaustive and able
speech delivered during this debate ca the re.o-
luton reported from the Finance Committee.
That remedy is to secure 10 the holders of green
backs the right 10 convert them at their option
iuto inlerest-teaiing 5oudI Sir, to this remedy
am opposed l concur in the views II the
chairman OF the Financs COMMITTEES as to The OBJ
legation OF tie Government t. rades II its prom
ses but, sir, its promise was rot - redeem its
greenbacks by bonds bsaritg interest, tut /, pay
them in moacy-that is, n coin. We have,
Mr.. President, already an interest bearing deb;
sufficiently large, and can see no propuaty in
converting a debt bearInC TO interest into one
upon which interest would b, 10 pay. Ii IS 10
part Of the contract between the Government ana
the holders Of its notes, and would b, a gratu.-
ty by the Government to its creditors which il is
i'll able 10 make Having discussed this propos-
ito1 at the last session, | row content myself
With the simple announcement Of my opposition
to this plan without discussing il at length
Mr.. President, | DO not coLeur ia the view ex-
pressed by the Senator from Massachusetts,,
MIR. BOUTWELL,. He aid in his efoh ~
the resolu uon referred TO thai
There ~ Jousltion expressed. and th.nk uaua
implied. ia what Is written upon the nbuck that
II is to be rlid at particular time. 1t Is releelni
BILE at the pleasure OF the Government hut not pas
able Ut any partis moment.
Now, sir, according to my understandin. Of a
legal obligctiou, none stronger could possible tx-
st Than is contained on The lace OF the green
backs themselves The United State3 promiaes
10 pay to bearer the amount OF the note, with
out any reservation as to time aud if a direct
promise to nay can raise a legal or moral obliga
tion to pay. then the Obligation legal and NOR
al, is perfect, and cannot he FILTERED away by
argument, or impaired by suggestion. The Gov
ernment caunoI be sued, the obligation cannot
be enforced; but il is none the less binding and
ought to be admitted even ii the Government is
unable to fulfill IT, Nor can agree With the
Senator that we seould simply hold fast where
unto We have attained 10 my Judgment we
should 10 somelhIog more; we should begin at
the earliest possible moment TO redeem tie cur
reacy whicl, the Government.haa Issued.
Am fully aware that the Government is MT
in condition 10 redeem at once all or any great
part OF the currency for which it il respons ibe ;
but ] am equally aware that it has At present
in the Treasury considerable reserve IN gold.
| nj l.. h.t a lIv aoIl r.,
large amount of coin IN excess of the amoua re e.
quired to pay the interest on the public debt
Let this excess be applied from time To time, AS
it accumulates, to the redemption Of the green
backs. under such regulations as may be neces-
sary to do justice 10 the holders of the currency
and at no very distant day you will have placed
the circulating medium upon basis that will
Approximate its value TO specie, aud that by such
a gradual process as not seriously to disturb
values which will naturally accommodate them
selves TO the changed condition of the currency.
Let the government redeem, as soon as it can,
every obligation which it owes in the shaps OF
greenbacks. Let it sever its connection with tie
national banks Of the country, and leave 10 the
people under State regulations the management
of the banks, and the supply OF whatver curren-
cy the business ofthe county may require, and
in my opinion you will have more healthy and
sounder financial system than the present. The
Government itself will be less embarrassed, and
the business Of the country less liable to be dis
tuabed by revuslons and panics. To any meas
ure which looks to a return to specie payment 5
at the earliest possible period, 10 the ultimate
redemption and retirement Of the grsenbacks,
and the complete and final divorce of the Gov
ernment from tbs banking institutions of the
country, shall give al earnest and most cordial
support.