New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-12-24
The Currency Question.

EDITOR REeUBLIcAN:
In relation to our financial troubles, 1t
seems to be the generally received opinion,
that the present lack of general credit ana
consequent stagnatiOn Of business should
by some active measures be remedied; that
business men OF different sections of the
country with diverse interests will not OF
can not unite to adopt measures OF relief
that will be beneficial to all alike; that the
circulating medium" exercises q potent
influence on trade, and that by establishing
currency upon an unfuctuating basis, relief
from the depressed condition Of trade may
be accomplished; that to affect any change
in the 1uctuating value Of the circulating
medium, new laws will have to be enacted
and the question as to the best method OF
relief for adoption can there be decided by
the representatives Of the people and states
in Congress.
While as above stated the popular belief
Is that che present condition Of our finances
should be remedied; that the business men
are unable TO relieve themselves: and that
Congress must afford chem relief by
changing the currency laws: they are very
much divided a. to what should be the
method Of relief.
On so important subject there should
be no undue haste in adopting theory, but
| in che advice Of the experienced, it is to be
believed that there may be evolved some
plan of redemption from tho situation that
will be acceptable 90 all thinking men.
Currency can hot Immediately be con.
yerted to the higher standard of coin, with
out the yepesl OF the legal tender act, and
can neyee attain shat standard without
such repeal OF q contraction of the currency.
Az direct contraction Of the currency is
unpopular. the only other course practicable
I is the repeal of the legal tender act
To effect gadical Improvement In OUT
currency the application Of remedies should
be direct. The present low premium on
coin has existed too long sime not to con-
1svince thinking men that there will be no
[ change until Congress suskes q definite
effort to resume specie payments. Should
Congress pass currency bill that will not
be measure Of contraction nor repeal of
the legal tender act. it would be equivalent
only 10 deferring specie payments to time
when resumption will be rs difficult as now.
As objective 70 the theories of the pro.
} crastinators, ] will Offer the 70 flowing plan
Of resumption fos the consideration OF
those interested in the subject.
! IN resumption Of specie payments l would
propose as the initial step: That after the
| first day Of July, 1875, the legal tender
act be made imperative in respect 70 all
written contracts made after that date.
2. That the legal tender act be totally
repealed, TO take effect January !. 1876, 60
| fat as it affects sll individual contracts: but
az q tender for dues to the government the
legal tender act shall semain in force.
! >. That ON ana after January J. 1876.
there shall be issued coin notes in substitu.
! ton for all treasury notes in the treasury.
and for those subsequently covered into the
! treasury, and pay the current expenses OF
| the government with Che Same. The coin
! notes 20 be receivable for all dues TO the
I government. including duties on Imports.
and to be held as the reserve by the nation.
] al banks. To be convertible into four per
! cent coin bonds at the option of the holder.
and upon such conversion the coin notes to
/ be cancelled.
4. That national banks. In addition 70 se.
.leeming at their counters. be required to
redeem in Washington such Of their cur
! rency as may be received by the Treasury
! Department in the payment Of taxes.
It has been offered in objection to Che
4 <~C NJ
the people are oot prepared for that
I measure, owing to the difficulty in accom-
/ modating commerce 10 the change from a
lower to the proposed higher standard Of
currency, and that the people can not pay
! debts in coin that were contracted in legal
tender times without suffering loss. To
| obviate this difficulty that is apprehended
| from immediate resumption the first clause
| of the above plan is proposed; which plan
/ would give the country six months time
| to establish its commerce upon q coin basis.
That such result may easily be effected is
demonstrated by reference to the ease with
which paper valuations were substituted
| for those Of coin at the commencement Of
I the late war. Then all dealings in coin
gradually merged into the legal tender basis.
Commerce can accommodate itself to the
use of two currencies of different values
I during the proposed period Of six months,
as is demonstrated by the experience Of
the "Pacifc coast" There contracts arr
made on either q coin or paper baeis, with
out incommoding the regular course Of
business, the banks even receiving deposits
of both coin and paper on the same account.
The successful experiment of 1871 and 1872
on this coast and the practice of the
Pacific for more than . decade, should
indicate the feasibility of making coin con-
tracts while paper is illegal tender"
In consideration of the total repeal of the
legal tender act on the first of January,
1876, it should be kept in mind that banks:
as the discounters Of commercial paper,
hold the greater part of individual indebt-
edness in this country. Thirty, sixty and
ninety days is the ususl time given by banks
in discounting their customers paper. The
larger part, then, of the individual indebt-
edness outstanding July l. 1875, could be
met before the time set, for the total repeal
of the legal tender act, while new contracts
for money would be drawn for coin. Should
any indebtedness not mature until after the
repeal of the legal tender act, then, OF
course, the debtor could as easily collect
the coin to pay the same as in legal tender