The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-09
Fix the Status of the Legal Tenders and
Let Us Know Where We Stand.
MONEY ELSEWHERE.
The Plethora in Banks-Investment Sc
curities, Railroad and Government
Bonds in Good Demand.
THE COURSE OF GOLD.
WALL STREET,

WALL STREET,
SUNDAY, Feb s, 1874.
Secretary Richardson In his report to Congress
OF the LIST OF December, 1873 wrote as ollows-
"Any large augmentation or the issue Of United
States legal tender notes in times of peace would
not only be departure from that declaration Of
public policy and pledge Of the public faith to the
national creditors made In the act OF June 80
1864, as well as from that more solem n
pledge contained in the first act of the Forty-hrst
Congress QS69) TO make provision at the earliest
practicable period for the redemption of United
States notes In coln,' but would postpone the day
OF specie payments and render IL more difficult to
attain in the distant future, unsettle confidence In
our national finances, and be serious detriment
to public credit at home and abroad" The fore
going language is so tulI Of plain common sense
and
SOUND FINANCIAL WISDOM
that one could easily believe 1t to have been writ
ten by Chase, Fessenden or McCulloch. In fact
each OF these gentlemen did write something very
much like it. They, however, differed from the
present Secretary in that they were not satisfied
with the simple expression OF views at once en-.
couraging to every commercial and agriculture,
interest, and pregnant with promise to the work.
ingman that the time was not indefinitely post
poned when the dollars he contracted to receive as
wages should retain the same value when his
necessities required their use. They also en-
deavored to put their propositions in practice
Messrs Chase and Fessenden-during the war by
restraining the issue Of legal tenders within the
lowest amount consistent with the overwhelming
necessities of the government; and Mr.. McCulloch
by
RETIRING AND CANCELIING
legal tenders as rapidly as be could under the law
authorizing him to do SO. Mr.. Richardson, on the
other hand seems to have fine words for the legi-
innate business OF the country, and only acts for
the Spectator. For. at the very date Of his re-
port he had already issued upwards of $1,000, 900
OF so-caled legal tenders, and taken just SO many
steps towards postponing and rendering 1t more
difficult 'n the distant future to attain specie pay
ments." At the expiration Of another month, to
wit, January /, 1874, he had advanced the amount
In the same direction another $11, 900. 900. During
the next month-let us be grateful--the additional
issue was only about $3,o00,oo0, although at one
time 1t reached upwards Of 100000. Thus the
issue Of legal tenders has been "largely aug
mented." Upwards of s25, 900 OF the reserve
are now out or more than one. third OF
THE ANNUAL EXPENDITURE
OF the government prior to 1861 and, quoting Mr..
Richardson's own language, 'specie payments have
been postponed, and rendered more difficult to
attain in the distant future" II coincidence in our
national finances" is not yet 'unsettled'' and "the
public credit at home and abroad not yet i'm
paired" 1t Is because the people are trusting in
Congress to repair the wrong that has been done
by preventing the possibility OF its repetition and
by the adoption of some method whereby this spu-
rious Issue shall be either withdrawn or deprived
OF its false attribute OF money. That 1t Is false Is
TACT too plain to be controverted. The best de-
fence yet made OF the theory was fathered by Mr..
Merriam, in the House of Representatives, but it
ftop frcv, Iox,a
during the war, and was summed up in
THE QUIBBLE
that none OF these laws had been repealed. 1t was
nothing that either the preamble or the body Of all
these legal tender laws contained the acknowl-
edgment OF state OF extraordinary circum-
stances, and that most II not all Of them authorized
the issue OF legal tenders simply as one OF the ne
cessities OF the war; 1t was nothing that the act
OF 1885. in its authority to the Secretary, reads
'retre and cancel" or that the act of 1868, with.
drawing this authority, reads "to further retire
and cancel" It was nothing that in all OF the es-
Inmates OF resources and expenditures presented
by the department since 1855 no "reserve" ever
has been included as part OF the resources. 1t was
nothing that the whole history OF the country even
during the war; does not AFFORD single precedent
OF reserve, except when created for specific
and specified purpose ana over which the depart
1t was nothing that there Is no question, either
with the Secretary OF that period with the men,
bers OF the Congress which passed the laws of 1865
and 1868, as to
THE TRUE INTENT OF THE LAW OF 1866.
1t was nothing that Mr.. Boutwell, In 1862 as Sec.
Rotary OF the Treasury, in his first report to Con-
gress advised the restoration of the of 1866 to
the extent Of at least S. Ooo, 900 per MONTH "a
necessary step toward specie payment" and not
for the purpose OF charging reserve" Ali
these evidences OF the Intention and IN terpreta-
ton Of the laws, down TO Mr.. Boutwes sudden
conversion in october, 1872, seem to have been
nothing to Mr.. Merriam as compared with his sup
posed duty to the administration in defending q
violation OF law 80 plain that it the aspect
OF being willful. The Treasury Department has
been run TOO long as
A MANDATORY OF POLITICAL CAPITAL
In the shape OF a reduced bonded debt and reduced
interest charges at the expense of the laboring
classes Indeed the neglect Of government TO first
redeem its legal tenders has compelled tax
upon the working men more than equal to the
annual interest payments Of the United States,
a tax that Is collected from their dinner tables
and their backs, without practical benefit accruing
to the government. The question of the hour is
will Congress DO It's duty before it is too late ?
That body has already spent much valuable time
In useless discussion, during which the industries
OF the country have languisned. Now let it drop
ali complex machinery and apply to the solution
Of the financial problem, the simple business rules
that would apply to an individual. The country
wants no help from Congress, but it does demand
a policy that has In it the ingredients Of common
honesty-an acknowledgment and solemn pledge,
fortified by acts that Of all the debts due by the
government the first one to be paid as the one
most sacred is the forced loan In the shape
OF legal tenders Next 1t demands solemn
declaration from Congress that 1t has
not the constitutional right or power
in time Of peace to make anything but
gold and silver legal tender. This being done
IN ha On nv CT and IN