Juniata sentinel and Republican. [volume] (Mifflintown, Juniata County, Pa.) 1873-1955, 1874-04-29

views of the Secretary of the Trea.
sury in relation to the necessity of a
contraction of the currency with view
to as early resumption of specie pay
ments as the business interests of the
country will permit, and pledging CO.
operative action to this end as speedily
as possible. The first &C, passed by
the Forty-frst Congress on the lStf
day of March, 1869, was as follows:
AN ACT to strengthen the public credit
of the United States.
BE ii enacted, sc That in order to
remove any doubt as to the purpose OF
the Government 10 discharge all its OBJ
ligaliens to the public creditors and to
settle conflicting questions and inter
pretatioas of the law BY which such
obligations have been contracted, it Is
hereby provided and declared that the
faith Of the Ucited States is solemn )
pledged TO the payment IN coin, or It's
equivalent, of all obligations of the
United States, aud OF all the interest
bearing obligations, except IN cases
where the law authorizing the issue OF
any such obligations has expressly pro-
vided that the same quay be paid in
lawful money or In other currency than
gold and silver; but none of the said
interest bearing obligations not already
due shall be redeemed Ut paid before
maturity. unless at such times as the
United States notes shall be conyertI-
bic INTO coin at the option of the holder,
or unless at such time bonds of the
United States bearing lower rate of
interest than The bonds to be redeemed
can be sold at par in coin. And the
United States also solemnly pledges its
faith to make provision, at the earliest
practicable period, for the redemption
of the United States notes in coin.
This act still remains as continuing
pledge of the faith of the United States
to make provision at the earliest prac-
ticable moment for the redemption Of
the United States notes in coin. A
declaration contained in the act of June
80, 1864, created an obligation that
the total amount of United States notes
issued or to be issued should never ex-
coed four hundred millions of dollars
The amount in actual circulation was
actually reduced to three hundred and
ffty-six millions OF dollars, at which
point Congress passed the act of Feb
ruary 4, 1868, suspending The further
reduction of the currency. The forty
four millions have ever been regarded
a, 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 suddenly fall
below Expenditures, and such reserve
is necessary because the fractional cur
rency, amounting to fifty millions, is
redeemable in legal tenders on call.
1t may be said that such return of
fractional currency is impossible. But
let steps be taken for a return to a
specie basis, and it will be found that
silver Will take the place of fractional
Currency as rapidly as it can be sup
piled When the premium on gold
reaches sufficiently low point with the
amount Of United States notes TO be
issued. permanently fixed within proper
limits, and the Treasury so strengthened
as to re able to redeem them in coin
, on demand, it will then be safe to in
augurate q system OF flee banking,
with such provisions as to make COM
pulsory redemption of the circulating
notes of the banks in coin OF IN United
States notes, themselves redeemable
and made equivalent TO coin. As a
measure preparatory to free banking,
or for placing the Government in a con-
dition to redeem its notes IN coin at the
earliest practicable moment, the reve-
nues Of the country should be in
creased SO as to pay current expenses,
provide for the sinking fund required
by law, and also a surplus to be re
tanned in the Treasury in GOLD.
| am hot believer in any artificial
method of making paper money equal
to coin VIXEN the coin is not owned or
held ready to redeem the promises to
pay, for paper money is nothing more
than promises 10 pay, and is valuable
exactly in proportion to the amount of
coin that il can be converted into
While coin is not used as circulating
medium, or the currency of the coun-
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 ques-
ton. Duties on imports being required
in coin creates a limited demand for
gold. About enough to satisfy that
demand remains in the coInry, and to
increase this supply see no way open
but by the Government boarding
through the means above gwen, and,
possibly, by requiring the national aid.
1t is claimed by the advocates of the
measure returned that there is an un-
equal distribution of the banking cspi-
tai of the country. i was disposed to