Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1874-12-10

convertible paper money NAV be produced z
indefinite quantities at nominal cost, a note
OF the highest denomination costing no more
than the lowest. and it's volume depending
solely on Legislative enactment.
The history of irredeemable paper currency
repeats itself whenever aad wherever it is
used. 1t increases present prices, deludes
the laborer with the idea that he is getting
higher wages, and brings fictitious prosperi-
ty from which follow imitation of business and
credit and excess Of enterprise in ever in-
creasing ratio, until 1t is discovered that trade
and commerce have become fatally diseased,
when confidence is destroyed, and then comes
the shock to credit, followed by disaster aud
depression and demand fer relief by further
issues.
L dollar legal-tender note, such as
is now in circulation, is neither more
nor less than the promise of the gov
eminent to pay dollar to the bearer, while
no express provision is made by law for pay
ing the dollar at any time whatever; nor is
there any existing PROVISION for converting il
into anything that staLds in tangible ratio
to coin dollar. AS far as existing laws go,
there is no reason why the legal-tender note
of the denomination of dollar should pass
for one cent of gold, except so far as the gov
eminent compels creditors to accept it in dis
charge Of obligations to pay money. and
obliges the wealth and commerce of the coun-
try to adopt it as medium of exchange. To
this may be added, as an element of the value
of the legal-tender dollar, the hope that the
government Will sometime or other redeem
Its paper promises according to their
import. The universal use of, and reliance
upon, such q currency tends to blunt the
moral sense and impair the natural self de-
pendence of the people, and trains them to
the belief that the government must directly
assist their individual fortunes and business,
help them in their personal affairs, and en-
N Qhor fboi Haht hwy al
payment. This inconvertible paper currency
begets the delusien that the remedy for pri-
vate pecuniary distress is in legislative meas
ures and makes the people unmindful of the
fact that the true remedy is in greater pro-
duction and lees spending, and that real pros
perity comes only from individual effort and
thrift. When exchanges are sgain made in
coin, or in currency convertible into it at
the will of the holder. this truth will be IN
de, stood and acted upon.
While it seems to be very generally con-
ceded that resumption of specie payment is
essential to the honor of the government aud
to the general welfare, the views OF intelligent
and well-informed persons as TO the best
method of resumption are so widely divergent.
and the plans that have been suggested so
mu tifarious, that the Secretary feels embar-
rassment in suggesting plan the details of
which will commend Themselves to Congress.
But there are one or two fundame ntsl ideas
a,
must be the basis of any practicable plan for
resumption and are, therefore, submitted for
the consideration of Congress.
1t is obvious that there can be no reeump-
ton by the government so long as the vol
ume of paper currency is largely in excess of
the possible amount of coin available for that
purpose Shich may come into the Treasury in
any year, and while no provision is made for
the conversion of this paper money into any
thing having nearer relation to coin; nor is
it possible for the banks or PEI pie to resume
80 long as the large amount Of irredeemable
paper now in circulation continues to be by
law legal tender for all private dabss with
reference both to the past and the future.
While this state Of things lasts, gold will con-
tinue to how from us, and find employment
where the natural laws Of trade. unobstructed
by restraining legislation, make its daily use
indiepeni able.
The Secretary. therefore, recommends Con-
gress to provide by law that after an early and
fixed day United States notes shall cease to be
legal tenders as to contracts thereafter made.
But this provision should not apply to official
salaries or to other ordinary expenditures of
the government under then existing contracts
or appropriations. Between the day thus 10
De fixed and the time of final resumption a
sufficient period should elapse to enable
the people and banks to prepare for the latter
by such gradual processes in business as
will neither lead to violent contraction
in credit and values, nor suddenly IN
crease the obligations Of debtors. The sud-
den and immediate appreciation of the paper
dollar to its par value IN gold Is not only no
necessary element of redemption, but, as far
as practicable, should be avoided. If during
the period of the war the legal-tender acts
operated as bankrupt law, compelling cred
itors to give acquittances upon the receipt OF
less than the full amount of their debts, this
is DO reason why the law for resumption
should now compel debtors at once to pay
essentially more than they have contracted to
pay. The adoption of such measures as will
not suddenly increase the obligations
of debtors will go far to allay and
disarm whatever popular opposition to
exist, and, besides, would he but Just to
the debtor class. The day from which new
contracts must be discharged in coin should
be fixed sufficiently far in advance to give III:
people and the banks time to understand il
and to prepare themselves for it. 1t is be-
lieved that not many months will be necessary
for that purpose; but, to avoid the miscbiefs
already indicated, thus day should precede the
day of final resumption by longer period
The time should not, in the opinioa of the
Secretary. be extended beyond three years
and might safely be made much less as, In
the Judgment of Congress, would sufficient,
protect the interests of debtors and avoid III,
evils of too sudden contraction.
The Secretary states that 2, 200 ma
tional banks have been organized under
the National Bank act, of which 200
were in operation on the I'd of Octobel
last. At thf.t date the aggregate cap;
tai Of these banks was S493, 765, 121
with surplus in addition of S12S, 95S,
106; circulation outstanding, 1888, 225,
29S; individual deposits, $3.50, O6S. 995
loans, S949, $40. 627; specie, $2l, 24O,
945; legal-tender notes (ncludinl
United States certificates of deposit)
1922, 846, 946; redemption fund with tn
United States Treasurer, $40, 349. $50.
The Secretary recommends the i'm
position of special tax upon all in
terest.bearing deposits, with view t.
preventing the payment of interest o.
bank deposits.
The act of June 20, 1874, limits tn
amount of legal-tender notes to $685.
100000. The authorized amount @
national bank notes was not charges
but remains at 1854, 100000. This &C
provides, however. for the transfer {
circulation from the Eastern and Mic
die States to the Western and Souther