Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-23


was II 40, and in 1873 it was 1884. Dia
not these facts, by themselves considereu,
demonstrate that in these four years we
had made progress towards specie payment
Mr.. Morton inquired if the gentleman
did not attribute the decrease in the price
of gold in 1869 to the act of Congress
passed then to strengthen the Pubic
credit.
Mr.. Boutwell, replied that he attributed
much of the cause of the decrease to that
ae., but the depreciation in the priceof goid,
was not due exclusively to the passage OF
that act. 1t was due also to the increase
in the business of the country. He looked
for the ultimate and not far distant equali,
cation of paper currency and coin, and until
that time arrived any policy looking TO tne
resumption Of specie payment would De
Taught with the greatest danger. WIN
imitation the interest on money would con-
tinually advance. Money grew cheap IN
New York when business men were away |
at watering places. But as the 1ali
came on the demand increased and
interest advanced. After the crops had
been moved it became plentiful again, ana
interest became lower. These changes were
bound to occur every year. He argued thal
it was possible to have a deprecated cur
rency, and vet paper in circulation couid
be nominally redeemable in coin. lie
opposed the free banking system. Under
it the currency of the country would Oe
vastly increased and when the time come 10
resume specie payment, these banks wolu
be unable to respond. He was opposed TO
the proposition of his colleague (SumIer)
for convertible bonds and expressed the
opinion that IL would result in contTt1c-
ton and boarding of money to the dotri-
ment of the business interests Of the
country. If the currency was TO be con-
tracted as a means to resume specie pay
ment, let it be done openly, SO that every
business man could see what was going to
be, and shape his business accordingly.
Was it to be presumed for momeIt that
we could 90 on to the markets OF the world
and purchase coin with which to redeem
legal tender rates. The whole bank of
England and the money markets OF Europe
combined would be aroused against rs.
The Real Objection TO Convertible
Bonds.
The great fortunes accumulated during
the war by individuals in this countrypu
il in the power of few men to organize
themselves to prey upon the government.
1t was possible for men in New ork TO go
to Massachusetts, for the purpose OF specu-
Iation and control ten, twenty or even
thirty million dollars, and if the plan pro
posed by his colleague (Sumner) should be
adopted these men would work ruin to the
Treasury by putting their money into these
convertible bonds when money was plenti-
full. and hold their bonds until scarcity OF
money occurred when they would have
them redeemed and precipitate an addi-
tional volume of currency on the country,
initiating prices and doing great damage.
The plan of returning to specie payment
A Year from Now
also was very Objectionable. As he had
shown, the Government could not get the
! gold to do it, and if the time for q return
should be fixed at year from now, the
| Government could not stand the shock.
After redeeming fifty or one hundred mil
| lions the Treasury would have to close its
| doors. The only escape is to allow the
Secretary of the Treasury to go intothe mar
kets of the country and buy our six per
cent. bonds at the market price with pro-
ceeds derived from the sale OF the five per
cent. bonds. The Senator from Missouri
(Schurz) is in favor of resumption Let
! him show how it can be done. He Bout
welT had observed a disposition to put
more confidence in the days of the future,
of which we know not, than in the days OF
the present, of which We know.
Schurz.
Mr.. SchurZ said that the discussion now
| was merely upon a resolution directing the
! Finance Committee to report a bill not
! upon a specific means for specie resunIp-
| tisn. When the committee has reported
the bill, he would discuss specific meas
urtss. There has been an imitation of cur
rency now amounting to twenty-seven mil
| lion dollars. If this process went on even
| TO the extent Of the fourty -four million re
serve, he was not sure but that it would
/ be followed by events corresponding with
/ those in New York, in September last. lie
therefore thought it the duty Of
| Congress to legislate Immediately TO
| prevent such disaster. He remarked
now after struggle of five years if it was
| right to attempt TO strengthen the credit OF
| this country, now in time of peace and
4 comparative prosperity by going into our
| own markets and into the markets of the
world begging for money to pay the current
| expenses of the country. There is but one
remedy and one means to ward off the evil
and that is taxation. He would not say on
what the taxation must be. 1t was that or
| else the ulS5Idcc vi OOlIOMlhS iholiCy W
pay the expenses of the Government, and
as between a burden and a disgrace, he
would put burden on the people of the
country before submitting to disgrace.
| Gordon.
Mr.. Gordon said that the Senator from
Massachusetts, spoke of the increased pros
perity of the Southern States. lie begged
TO refer to the fact that the cash value of
the farms in Georgia in 1SG0 was Sl51, OOO,-
600, and in 1870, only S94,OOO,OOO. The
value of all real estate in Georgia, including
| cities and farms, was $53,OOO.000 less in
1870 than in 1860. In 1860, Georgia raised
31.OO0.O 900 bushels Of corn; in 1870. only
about half that quantity. In 1850, she
raised 100000 head of hogs; in 1870, only
9SS,O00.
The Senate adjourned.