The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1874-12-11
8 3 7G2,447.65

The interest due and unpaid June
80, 1874 was less than June 80,
1913, py......-.. 34l7, 800 80
s 762, 447.65
Upon the question Of specie resumption the
Secretary is very pronounced in his views.
He says
The law should also authorize the immediate
conversion of legal tender notes into bonds
bearing low rate of interest, which, while in.
wiling conversion, should not be so high as to
appreciate the legal tender notes rapidly, and
thereby operate oppressively on the debtor
class As an additional inducement 10 the con.
version of United States notes into these bonds
ut a low rate of interest, authority should be
given for making them security for the circula-
ton of national banks. The law should further
provide the means for the redemption of such
notes as may be presented for that purpose
when the period of resumption shall have been
reached. To this end the Secretary should be
authorized TO make q loan not exceeding the
total amount of notes remaining unconvertedat
the time OF resumption, less the surplus revenue
to be made applicable to such resumption. 1t
is probable that the gradual and continued re-
vival of business will so far increase the rev.
enues that a large loan will not be required for
this purpose but il is advisable that the Sec
rotary be authorized to make it in order to meet
the contingency of failure of sufficient sur.
plus revenues. Such loan should he made by
issuing bonds To run for such time as the WIS
dom of Congress may suggest, and to he dis
posed of from time to time as the necessities of
the case may require. In the opinion of the
Secretary, these bonds should run for q long
period, and should bear interest at a rate not
exceeding the lowest rate which the govern
ment may then be paying in refundng its 6-per
cent. securities Any substantial useful
movement for resumption nooessariy involves
supplying the Treasury with increased amounts
of coin, either by increased revenues, or an adj
equate loan. The present condition of the
credit of the government, which would he
further enhanced by the adoption of measures
for return to a specie basis, leaves no room for
doubt that n loan for such purpose would be
readily taken at q low rate ofinterest Measures
should also be adopted requiring the banks to
hold gold reserves preparatory to resumption on
But the Secretary does not deem it proper to
| pursue the matter in further detail. If Con-
gress shall conclude, rs he earnestly hopes il
WILL that the time has arrived for the enact
ment of a law having for its object resumption
| of specie payments, its own wisdom will sup
| ply the necessary methods That which is of
! the highest Importance is the adoption of the
| definite policy of resumption. In view of the
great and pressing Importance Of the speedest
return To specie payment cons0nant with steadi.
ness of business and avOidable of violent and
| sudden contraction, discussion of mere details
in advance becomes of little practical con.
| sequence. What is demanded by the best in
terests of the government and the people, and
| by the highest considerations of virtue and
morality, is that Congress shall undo that
state of things which only the necessi-
| ties of war justified or required in
this respect A wise modification of existing
statutes, which neither enable nor permit the
executive branch of the government to effect
the restoration of a sound currency, will leave
the laws of free trade to resume their opera.
| tons, and many matters of detail will adjust
themselves. When the government shall have
resumed specie payment, it may be expected
that gold will flow into the country in obedience
to the law of supply and demand; the export of
our gold product Will greatly diminish, and the
millions of gold which constitute only a com
modify of trade will resume its proper functions
by becoming again part of the circulating me-
dunn. With the adoption of the policy of re-
sumption, free banking may safely be allowed,
and the deficit of the actual amount of coin avail
able for circulation can be supplied by bank
notes convertible into CON- i'll lieu of an incon-
Vertible paper currency.
The enactment of a law having for its purpose
the substitution of sound and stable medium
of exchange for an irredeemable paper cur.
rency VIII tent to restore confidence, and
thus cause u revival of industries and general
business.
There will be no better time in the future to
enter upon the work of returning to Il
! specie basis, and the Secretary feels that
he cannot too strongly urge the adoption
of the measures he has indicated, or such
others as will more certainly lead to the desired
| end.
In connection with this subject the Secretary
deems 1t proper To suggest, for the considcrT,-
| ton of Congress, the Importance of the most
rigid economy in the public expenditures
The length en- of time that has now elapsed
| belllon as wei as proper regard Tor
the faith of the nation, admonish us
| that ntiatOry steps toward the redemption of its
pledges ought not to be longer postponed. 1t is
not unworthy of remark that the era of the war
will not he closed until the periol of redemp-
| ton shall have been reached
In q country like ours, with varied industries
and extensive commercial relations among its
different sections and with other nations and
| peoples, stability of the circulating medium is
indispensable to the general prosperity. Credit,
! which necessarily enters largely into CONNER.
cial transactions, can only be steady and secure
| when ii has for its foundation stable currency.
| The quality of stability i'm money attaches only
| to coin, which, by common consent of mankud
is the medium of exchange, and To paper cur.
.fnff n..fn
bic into IL at the will of the holder. The reason
is obvious; for coin, besides being
recognized throughout the world as Il medium OF
exchange has high intrinsic value, can be pro
cured only by labor and in limited qttantite,
which cannot be increased by statutory laws
nor suddenly by other MEANS while inconverti
bile paper money may be produced in indeflnit,
quantities at n nominal cost, Il note of the high
est denomination costing no more than the low
est, and its volume depending solely on legsla
The history of irredeemable paper currency
repeats itself whenever and wherever IL is used
1t increases present prices, deludes the lahore
with the idea that he Is getting higher wages
and brings a fictitious prosperity from whcl
follow imitation of business and credit, and e.N
Of enterprise IN deve tbat i@s ratio
commerce have become fatally diseased
when confidence Is destroyed, and the
comes the shock to credit, followed by disaste
| and depression, and demand for relief by fun
A dollar iegal.tender note, such as is now /
! circulation, is neither more nor less tlan IN
| promise of the government to pay a COLLAR to TN
| bearer, while no express provision is made b
law for paying the dollar at any time whatever
nor is there any existing provision for convcrtin
it into anything that stands in tangible ratio I
a coin dollar. AS far existin
laws go, there Is no reason why the lega
tender note of the denomination of q dolla
should pass for one cent of gold, except so far
r the government compels creditors TO accept
, in discharge of obligations to pay money, AN
Obliges the wealth and commerce of the countr
10 adopt IL as a medium, of exchange. To tn
may be added, az an element of the value of th
legal tender dollar, the hope that the govern
| ment will some time or other redeem II