The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-01-20
THE FINANCES


senate. He argued that specie was the only
true standard of value, and no other could
be established. Bills of exchange, drafts
and promisory notes were used in settlement
in commercial cities, as specie was so heavy
for transportation. In England where the
specie standard value is zealously main
tanned, only per cent of commercial settle
ment are in specie. Great Britain and
France have recognized the importance
of maintaining their paper at
specie value, and performed it, while
the United States recognized this duty and
the national banks had not paid their notes
in coin was because the United States did
not so redeem its paper. If the United
States was out of the way with its depre-
ciated paper money, the national banks
would have to redeem their notes in gold
Congress is bound both by public faith and
good policy to bring our currency to a
specie standard. He read from the act of
congress to strengthen the pub
lie credit, and said the United
States by it gave a pledge to redeem
these notes in coin. Without referring to
the decisions of the supreme court, he rested
his argument on that pledge alone. That
pledge was to redeem these notes at the ear
liest practicable period in coin. How have
we redeemed that promise? Congress made
hepromise in response to the public voice,
and l say to you with sorrow that congress
o
is to advance our paper to gold standard.
Four years have passed away since then
and dollar in greenbacks is worth
no more than it was in March, 1870
These were facts, although it might be pain
ful to discuss them. The congress OF the
United States had done no act, the tendency
OF which would lead one to suppose that
ed -Four hundred millions OF the
public debt had been paid, a debt
not set due, and not single dollar of the
debt due had been paid. We were living
now in daily violation of the pledge made
by congress, and had actually added to our
currency since the act of 1869.
On June 80, 1869, the legal tenders out
standing amounted to 1856 600, OOO on the
lst Of January last, they amounted to S37S.-
4S1, 339. an increase in this form of secur-
ity OF go, 4Sl ,339. The fractional currency,
which in 1869 amounted to $27 sos 92S, now
amounted to S4S,554, 792, being anFincrease
over S2l 900, 900; and again the national bank
circulation had been increased from $780,
$4,000 to $685., SS1 900. making a total in
crease of currency of over $4,000, 000. He
argued that it had been practicable during
the last four years to advance our notes to
specie value; If not, when would it be.
Should the redemption OF the pledge be post
poned till the public deut be paid, one-tenth
of the amount of money which had been
used to pay the public debt not due, would
have brought the country to specie pay
ment. This thing of postponing the fulfill
ment OF promise could not be longer main
tanned with view of reducing the public
debt. five postpone redemption in order
to pay the public debt, it
WILL BE MANY LONG YEARS
Before the consummation, most devoutly
to be wished, can be reached. If imitation
lists wanted $4,000 900 more now; how long
long would it be before they wanted another
500, 900. 600? Men would always be in debt.
and always demanding an increase of cur
rency. Where would it end? Just where
our ancestors stopped at the close fthe rev.
olution. He regarded it as the crowning
achievement that the government Just enter
ing at the close of the war If it pay all its
obligations. The present is the time to stop
and bring our currency to gold standard.
Every bond or note of government had
been issued upon sacred pledge that the
interest and principal should be paid in coin.
Had the provisions of the legal tender act
been carried out we would return to specie
payment long ago. Many things had been
done in times of excitement and peril when
the government was in danger. which it
would not be proper TO do now. He was
willing to take his share OF the responsible
ity Ofthese acts. He reviewed the financial
policy of the government since the war, and
regretted the act of April. 1866, which de-
piived the holders of our notes from con.
verting them into interest bearing bonds at
par. More evils had resulted from that act
Than from any other act of our financial
system. If in the first session of congress-
when Andrew Johnson was president, con-
gress had passed finding bill, all the evils
which have grown out of our disordered
currency would have passed away, but
the country was excited then. The
question of differences between the president
and congress. and the questions of civil war
prevented any consideration OF our finances
The act of April IL, '66, was passed after an
hours debate and it conferred upon the sec
rotary of the treasury powers never confer
red upon any one man before. He next
spoke of the reissuing of the legal tender
reserve, and said he thought thsspirit of tie
act of congress was against the reissue
thereof
Mr.. Boutwell, said it had been absolutely
necessary during his administration, as well
as during that of his successor, to draw on
his reserve TO maintain the public credit.
The attorney general had given an opinion
as to the secretary having the right to do so.
Mr.. Sherman said he didn't blame the sec
rotary OF the treasury, but he thought it
would have been better for congress to have
taken action that would not have permitted
the reissue of that fund. He reviewed the
plans proposed for return to specie pay
ment, and said no doubt the most certain
way to accomplish that end was by retiring
the notes. but the trouble would be that the
policy Of contraction would be so severe that
the people could not stand it. The plan which
he favored most was by taking some bond of
the United States, which in ordinary times
is shown to be worth par in gold,
and authorize the conversion of all
notes into this kind of bond
he did not intend to commit himself &c any |
plan az he had no priyate oninion on the |
subject to he argued, but he would review
some of the benefits which the latter pre- |
sented. 1t had been said that notes under |
such plan would flow into the treasury too |
that he thought that objection
a light one, as the government could use |
these notes in the redemption of our per |
cent bonds. Every dollar OF the 20 bonds |
are new due and payable at the
TREASURY IN COIN,
And by redeeming them as ne proposed, |
It would be more advantageous than the OPP |