Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1874-05-01

| without my approval. In doing So, must
express my regret at not being able to give
my assent to n measure which has received
a sanction Of the majority OF leg sators
chosen 10y the people to make laws for their
guidance, and | have StudiouslY sought to
find sufficient argument to Justify such as
sent, but unsucceSslullv. Practically, Il Is
n question whether the measure under dis
cussou would give an additional dollar 10
the irredeCmablc paper currency OF the
country or not, and whether by requiring
three luurths of the reserves TO be retained
by the banks and prohibiting interest TO
be received on the balance, it might not
prove contraction but the fact cannot be
concealed that theoretically the bill ia
creases the paper circulation one hundred
millions of dollars less only the amount of
reserves restrained from circulation by the
/ provisions of the second section. The
| measure has been supported on the theory
that it would give increa ed circulation; it
is q fair Inference, therefore, that If in prac
tice Congress should fill TO create the IL
! bundauce of circulation expected IF ii, the
| friends of the measure particularly those
out of Congress, would clamor for such in
flation rs would give expected relief
The theory, in my belief, is Il departure
| from the true principles Of finance, nation
al interest, national obligations to credit
Urs, Congressional promises, party pledges
| on the part Of both political parties, and Of
! the personal views and promises made by
| me in every annual message sent to Con-
| gress and in each Inaugural address. In my
! a"nnal message to Clngros, in December,
| 1869, the following passage appears:
Among tho evils growing out of the re-
| bel lion, aud not vet referred to, Is that Of
an lredcemaule currency; it is an evil
! which. I hope, Will receive your most earn
est attention. II Is duty, and ono of the
| highest duties OF Government, to secure to
citizens medium of exchange of tiyed,
unvarying value. This implies return TO
a specie basis, and no substitute for il can
be devised. 1t should he commenced now
aud reached ut the earliest practicable mo-
ment consistent with fair regard t. the
interest of the debtor class; immediate re-
sumption, if practicable, would be desired:
it would compel the debtor class to pay be-
yOnd their contracts tue premium on gold
at the date of their purchase, aud would
bring bankruptcy and ruin To Thousands.
The fluctuations, however, in paper value
Of measure of all values, gold, is detrimen-
tai TO the interest of trade; 1t makes the
man of business an involuntary gambler,
for, in all sales where future payment is to
be made, both parties speculate as 10 what
will be the value Of The currency to be paid
and received.
/ earnestly recommend to ynI, then,
such legislation as will insure a gradual re-
turn to specie payments and put an imme-
! date stop to tiuciuaiion. in the value of
the currency
| still adhere t. the views then express
| ed. As early as Dee. 4, 1865, the House Of
Representatives passed resolution. by a
| vote Of IA yeas to nays, cOncurrng in
| the views Of the Secretary Of the Treasury
| in relation to the necessity of contraction
of the currency, with Il view 10 as early
resumption Of specie payments as the bnsi-
ness interests of the country will permit,
and plcdging cooperative action TO this end
| as speedily MS possible. The first act pass
ed by the Furty-tirst Congress on the 18th
day of March, 1869, was as follows:
"An net To strengthen the public credit
of the United States. BE it enacted. &C.,
! that in order to remove any doubt as to the
| purpose of the Government to discharge all
its obligation to the public creditors, and t.
settle conflicting questions and interprcta
| lions Of the law, by virtue of which such
obligations have been contracted. it is
| hereby provided and declared that the faith
! of the United States is solemnly pledged
| to the payment in coin or its equivalent Of
! all the obligations of the United States, and
| of all the interest bearing obligations, OK
| cept in cases where the law authorizing the
issue Of any such obligations has expressly
! provided that the same may be paid in law
| ful money or in any other currency other
| than gold or silver, but none Of said inter
! c,t-hcaring obligations not already due
! shall be redeemed or paid before maturity,
| unless at such times as the United States
notes shall be convertible into coin at the
! option Of the holder. or unless at such time
| the bonds of the United States bearing a
lower rate Of iutcre.t than the bonds to be
redeemed can lie sold at par in coin. And
| the United States also Iemnly pledges its
! faith To- make provision at the earliest prac-
! ticable period for the redemption OF United
| States notes in COIN
This act still remains rs CONT unS
! pledge of the faith of tue United States 10
| make provision at the earliest practicable
moment for the redemption of the United
! States notes in coin. \ decllra'i ion con-
| timed in the act Of June 20, IS 1, created an
| obligation that the total amount of United
| States notes issued, or to he issued, should
never exceed SiO0,010,00O The amount in
| actual circulation was actually reduced to
| 500, 900 000, at which point Congress passed
| the act of February 1, 1865, suspending the
| further reduction of currency. The SAL OOO,-
| 900 have ever been regarded as a reserve to
| DO used only in case Of an emergency, such
aS has occurred on several occasions, AMI
| must occur when from any cause revenues
| suddenly fall below the expenditures, and
| such reserve il necessary because the frac-
| tinnal currency, amounting 10 $50, OOO, 900,
| is redeemIble in legal tender on call. 1t
may be said that such return Of fraction
al currency for redemption is impossible,
| but let steps be taken fora return to a spe
Gle basis, and it will be found that silver
| will take the place Of fractional currency
as rapidly as ii can be supplied.
sufficiently low point, with the amount OF
| United States notes TO he issued perma
nently within proper limits, aud the Treas
| ury so Strengthened rs To be able 10 redeem
! them in coin ON demand, it will then be
| safe TO inaugurale a system Of free bank
ing, with such provisions as to make com
| pulsory redemption Of circulating notes of
| the banks in coin, or in United States notes,
| themselves rcdeemab!e and made equiva-
lent to coin. As measure preparatory to
| free banking, or for placing the Govern.
ment in a condition to redeem its notes in
coin at the earliest practicable moment, the
revenues of the country should be increas-
ed, so as to pay the current expenses, pro.
| vide for the sinking fund required by law,
ana also urplus 10 be retained in the
| Treasury In gold.
am not a believer in any artificial meth
cd Of making paper money equal 10 coin,
when coin is not owned OF held ready to re-
deem the promises TO pay; Tor paper mon
ey is nothing more than promises TO pay,
and Is valuable exactly in proportion to the
amount Of coin that 1t can be converted in
To. While coin Is not used as u circulating
medium, or the currency of the country is
not convertible into il at par, ii becomes an
article of commerce as much as any other
product; the surplus will seek foreign
market, as will any other surplus. The
balance of trade has nothing 10 do with the
question the duties on imports being re-
quired in coin, create limited demand for
gold. and about enough to satisfy that de-
maud remains in the country to meet this
supply. l see no way open but by the Gov
ernment boarding through the means above
given, and possibly by requiring the ma
tional banks TO aid.
1t Is claimed by the advocates of the
measure herewith returned, that there is an
unequal distribution of the banking capt.
al of the country. | was disposed TO give
great weight to this view of the question at
first, but on reelection ii will be remember
ed that there still remains four millions OF
dollars of authorized bank note circulation,
assigned TO the States having less than their
quota, not yet taken. In addition to this,
the States having less than their quota oil
bank circulation have the option OF twenty
Hya pnillinns 10 40 oil f.pn