The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-12-15

those OF nome Subscribers, calls Tor SIX per cent.
bonds of the loan of February IS.
1862, have been made as follows:
august s5gyagb |, 4 s25'ooo'9 900
November 2, 5,00O,OOO
S55,00O,Oc0
The excess of subscriptions over calls, viz,
sll3,50, has been provided for by uncalled bonds
which have been received Dy the department in
payment for that amount. The larger portion
of the bouds subscribed for has thus far been
negotiated in Europe, where exchanges are still
being made.
RESUMPTION oF SPECIE
So much has been spoken and written within
the last decade, and especially at the last ses-
sion of Congress. on the financial questions re-
Iating to and growing out OF the currency sys-
tenn, that further extended discussion of the
subject at this time would scarcely seem TO be
necessary. The opinions entertained and ex-
pressed by public men and communities of peo-
pie, as well as the sense of Congress as hereto.
fore indicated by the votes of the two Houses,
must be accepted as one OF the factors of the
financial problem. Nevertheless, the great and
importance OF arriving at an ulti-
mate solution ofthe matter, and of restoring to
the government and the people a sound and
stable currency, induces the secretary to bring
the subject again TO the attention of Congress,
and to ask that decisive steps be now taken by
the law making power for return TO a specie
basis. To attempt an enumeration of the COM
plicated mischiefs which flow from an unstable
port 10 i~nexcusable length, and, after all, would
be but a repetition of what has been often said.
No nation can long neglect the wholesome max
inns, founded upon universal experience, that
uphold public credit without suffering financial
disturbances and bringing serious conse-
quences upon its people. 1t will not be denied
that the existing issue of legal tender no es,
as a circulating medium, would never have
been made except in the great emergency
of a war involving no less an issue than the
preservation of the nation. Whether the argu-
ment in support of the validity of the legal
tender acts be rested upon the war powers con-
ferred on the government by the constitution
or on other provisions o. that instrument, it is
clear that Congress could not have been induced
TO pass such acts under any other circum-
stances than in a time of the most pressing and
duces. The most earnest defenders of the power
to issue government obligations, and make them
by law legal tender for all debts, public and
private, would scarcely be found to advocate the
exercise of the power except under circum-
stances OF extreme necessity, and then only for
the time of the emergency; and there is abun-
dant evidence in the debates and proceedings of
Congress, and in the statutes themselves, that it
was not intended TO make the legal tender notes
the permanent currency OF the country. The
acts authorizing the issue of such notes pro-
vided for their conversion into bonds of the
United States, bearing interest at the rate of six
per centum per annum. The act of March Is,
1869, in terms declares that "the faith of the
ment in coin, or It's equivalent Of ali Civilizations
Of the United States not bearing interest, known
as United states notes The same act further
pledgesits faith TO make provision at the earliest
practical period forthe REDEEM tion of the United
STATES NOTES IN COln.+ Inc purpose oil the act
is well expressed in its title, which declares it to
be san act to strengthen the public credit" and
that such was the effect OF the act can not be
doubted, for it is an unconditional assurance on
the part of the government, not only that it's
notes shall be paid in coin, but that this shall be
done at the earliest practical period. The faith
of the government could not be more clearly or
absolutely pledged than is done by this act of
Congress, to say nothing of previous legislation.
The length of time that has now elapsed since
the final overthrow of the rebellion, as well as
proper regard for the faith of the nation, admon-
nC that 1nIrfnfnHU fapc fnNrord H. -
uon Of it pledges, ought not to be longer post
poned. 1t is not unworthy of remark that the
of redemption shall have been reached. 1T is
sometimes urged by the advocates of a continu-
anee of our paper circulation, that its amount,
being now definitely fixed by law, il is not liza
bic 10 the fluctuations in volume which attach
to a currency that may be increased or dimin-
ished at the will of the secretary; but
this suggestion leaves out of view
entirely the fact that it is of little
consequences where the power to cnange
ing only the degree of probability of its use.
The existence of the power at all, and the appre-
evil. from which mischievous consequences are
likely to flow. The quality of hexibility gov
erned by the law of trade and and
which regulates the increase or dimunition of
the volume of the circulating medium according
to the requirements of legitimate business, is of
value; but that which is controlled by the leg
fslative will, and. may depend upon party ext
or the supposed necessities OF the treas
ury, or the demand of speculative enterprises.
is Objectionable in the highest degree. Such a
currency is liable TO sudden aud violent expan-
sion or contraction, having no necessary con-
and commerce.
In a country like ours, with varied industries and
commercial relations among its differ
ent sections and with other nations and peoples,
stability of the circulating medium is indisDens.
aole TO the general prosperity. Credit, which
actions, can only be steady and secure when it
has for its foundation a stable currency. The
quality OF stability in money attaches only to
com, Wl1cl, Dy common consent of mankind is
the medium of exchange, and TO a paper cur
rency representative of coin, because conyertible
for coin, beside being recognized
the world as a medium of exchange,
mas q nlgn intrinsic value, can be procured only
by labor and in limited quantities, which can
not be increased by statutory laws, nor suddenly
by other means, while inconvertibie paper
money may be produced in indefinite quantities
at a nominal cost, note of the highest denomi-
nation costing no more than the lowest, and its
ment. The history of irredeemabIe paper cur
rency repeats itself whenever and wherever
it is used. 1t increases present prices, deludes
the laborer with the idea that he is getting
higher wages, and brings q fictitious prosperity.
from which follow imitation OF business and
and excess of enterprise in ever increasing
ratio, until it is discovered that trade and COM
merce have become fatally diseased, when con-
shock of credit, followed by disaster
ana depression, and a demand for re-
as is now in circulation is neither |
more nor less than the promise of the govern
ment TO pay q dollar TO the bearer, while no ex-
press provision is made by law for paying the
dollar at any time Whatever; nor is there any
provision for converting il into any
hing that stands in a tangible ratio to a coin
dollar. AS far as existing laws go, there is no
reason why the legal tender note of the demon
of q dollar should pass for one cent of
gold. except so far as the government compels
10 accept it in discharge of obligations
70 pay money, and obliges the wealth and COM
merce of the country to adopt IL as q medium Of
To this may be added, as an element
)f the value of the legal tender dollar, the hope 4
hat the government will some tire or other
redeem its paper promises according to their i'm
port. The universal use of, and reliance upon,
iuch a currency tends to blunt the moral sense
Ind impair the natural self dependence of the
people, and trains them to the belief that the
must directly assist their indi-
yidual fortunes and business, help them in
heir personal affairs. and enable them to dis
,harg5 their debts by partial payment. This
ncOnvertible paper currency begets the delu.
ion that the remedy Tor private pecuniary dis
,reSs is IN leSisiatiye measures, ana makes the