National Republican. (Washington City (D.C.)) 1872-1888, 1874-04-25

there were 103 Republicans for the bill, and
e8 against It; So Democrats for, and SO
against; and 1 Liberal for. and 3against it.
r. THE CURRENCY Bill. .ssss
The veto of the Senate currency bill by
the President has recalled Congress to the
chart of the party on the question of re-
sumption Of specie payments. The clear
ness and precision of the statements Of the
message leave no room for doubts as to the
course which it is the duty Of the Republic
can majority in Congress to pursue in order
to redeem the pledges which have repeat
edly been given to the public by the party
In conventions, by the President in his
messages and by Congress in its acts and
resolutions. That both parties are pledged
to provide for the redemption Of United
States notes in gold at the earliest possible
moment no one viii pretend to deny. That
any increase of the volume of paper cur
rency uncoupled by such provision for re-
demption viii serve to put further away the
day of specie payments is as clear as the
day. ~s,- -.seE.7 rsarr ry-.q-r
In October last gold declined to 81 per
cent premium. Under the effects Of tho
passage of the currency bill by Congress, 1t
advanced TO 114s Again, yesterday, under
the influence of the veto,c gold declined to
1921 United States securities were SINH
larly affected by the expansive legislation.
Under these circumstances, Is it not idle
longer to quarrel about terms-whether in.
crease of circulation means initiation or not,
and whether the present volume Is suf1-
Gent to enable an easy exchange Of the
products Of labor or mott The effects of
legislation In the direction Of an increase of
Government paper which neither bears in
terest nor Is redeemsble in coin being, as
has been clearly shown, to cheaper labor
by decrease Of the purchasing power of
its wages, II matters little by what name
you call it So long as the volume Of pa.
per does not exceed the necessities Of the
country for circulating medium simply it
viii suffer very little depreciation; but all
that is added after such necessity is dilu-
ton. It wcakens the whole body. Gold,
say what you will, is proof the world over.
Dilution enhances values. greatly to the in.
jury of tho creditor class. Sudden con-
traction Is equally unfair and injurious to
the debtor class. Consequently the slow,
gradual contraction of the currency pur-
sued by the Administrations the last five
years was the only equitable mode Of ap-
preaching the specie basis. The gradual
extinction of the public debt and retiracy of
legal tenders rapidly appreciated the. Gov
eminent credit until confidence in its prom
fses was firm and mistaken. But the de-
probation Of that class of its promises
which bear no interest, and are irredeem-
able, is evidence that there is more of them
abroad than Is necessary for medium of ex-
change. ..-..r -'---- -rg s-,r-r-asF o. b
How can these notes be appreciated to q
par with gold, is now the important ques-
ton. No one doubts their security. but they
are not available for their face at proof or
par value. They can Only be made avail
able in two ways, by redemption in coin or
by reduction of the volume to the actual
necessities of the country as circulating
medium. -..
The true method of ascertaining beyond
doubt the amount really necessary to the
proper transaction of the legitimate business
of the country is to provide for their re-
demption in coin at fixed day. No more
will be presented for redemption than can
be spared from the circulation. The &C.
knowledged superiority of paper over coin
in point of convenience and transfer as
medium will insure the preference being
given to paper whenever its equality in
value is placed beyond doubt. This has
been demonstrated in all commercial coun-
tries. Bank of England notes are gold
notes. They are legal tender for debts
and dues everywhere in Great Britain, ex-
cept only at the counter of the bank itself,
where they are redeemable in coin. The
Bank Of England is the reservoir for
all the coin in the country, and
whenever heavy demands are made upon
that instit..S.Jn for coin beyond what legiii-
mate bushes operations justify, the gov
errors raise the rates Of interest thereby
contracting loans and checking speculation.
This In turn causes an influx of the coin
again to the vaults Of the banks. One hun
dred millions in coin is rarely, If ever, used
in efecting one of these revolutions. The
operation Of the bank is perfect barome-
ter of the state of trade. The institution Is
the governor and regulator Of the financial
operations of the country, and Is conf
IDENTIFY relied upon to preserve the correct
equilibrium of the money market.
What Is to prevent the United States
Treasury from sccumulating one hundred
millions of surplus gold during the next
twenty months If Congress shall enact that
all receipts from customs be retained In its
vaults beyond the requirements for the pay
ment Of interest and the regular contribu-
ton to the sinking fund.- Having accumu.
lated this surplus there would be no danger of
inability to redeem the legal-tender notes in
coin as fast as they might be presented. II
any attempt should be made to purchase at
discount previous to the day fixed for re-
demption, and hoard them for the advance,
the effect would only be to make them sp-
proximate par the more rapidly. Simults-
neous with the accumulation Of coin In the
Treasury and the appreciation Of the legal
tenders would be the appreciation Of the
national bank notes which are redeemable in
the legal tenders. When 1t is remembered
that these national banks constantly absorb
one hundred and twenty to thirty millions
of legal tenders In the shape of reserves 1t
will become the more apparent that the
legitimate demand for currency for business
circulation will not admit of any very large
sums Of legal tenders being presented for