The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1874-12-10

This decrease is represented by the
excess of receipts over expendi-
lures. 2344. SS2. 30
The interest due and unpaid June
80, 1874, was less than June 80,
1873, by .......................... 3417, 565 IS
5 S 1862, 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 a low rate of interest, which, while in
viting 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 to the con-
version of United States notes into these bonds
at 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 loan not exceeding the
total amount of notes remaining unconverted at
the time of resumption, less the surplus revenue
to be made applicable to such resumption. 1t
is probable that the gradual and continued re.
ylval of business will so far increase the rev.
enues that large loan will not be required for
this purpose but it is advisable that the Sec
rotary be authorized to make it in order to meet
the contingency of a failure of sufficient sur
plus revenues. Such loan should be made by
issuing bonds TO run for such time as the WIS.
dom OF Congress may suggest, and to be 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 long
period, and should bear interest at rate not
exceeding the lowest rate which the govern
ment may then be paying in refunding its 6-per
cent. securities. ANY substantial or useful
movement for resumption necessarily involves
supplying the Treasury with increased amounts
of coin, either by increased revenues, or an adj
equaEe loan. The present condition of the
credit of the government, which would be
further enhanced by the adoption of measures
for return to specie basis, leaves no room for
doubt that loan for such purpose would be
readily taken at a low rate ofinterest. Measures
should also be adopted requiring the banks to
hold gold reserves preparatory to resumption on
their part
But the Secretary does not deem it proper to
pursue the matter in further detail. If Con-
gress shall conclude, as he earnestly hopes it
will, that the time has arrived for the enact
ment of law having for it's 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 speediest
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
e.
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 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 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- in lieu of an incon-
vertible paper currency.
The enactment of a law having for it's purpose
the substitution Of q sound and stable medium
of exchange for an irredeemable paper cur
rency Will tend to restore confidence, and
thus cause a revival of industries and general
business.
There will be no better time in the future to
enter upon the work of returning to a
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.
LII COHuCCIlOU WIFI IlllS SUBJECT, Cnc secretary
deems it proper to suggest, for the considera-
ton of Congress, the Importance of the most
rigid economy in the public expenditures
The length of time that has now elapsed
since the final overthrow of the re-
bellion as well as proper regard for
the faith of the nation, admonish us
that intiatory steps toward the redemption of it's
pledges ought not to be longer postponed. 1t is
not unworthy of remark that the era of the war
will not be closed until the period of redemp-
ton shall have been reached.
In country like ours with varied industries
and extensive commercial relations among it's
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 it has for it's foundation stable currency.
The quality of stability in money attaches only
to coin, which, by common consent of mankiud,
Is Gne medium OF exchange and to paper cur
rency representative of coin, because convert
Die into it at the will of the holder The reason
is obvious; for coin, besides being
recognized throughout the world as medium Of
exchange has high intrinsic value can be nro
cured only by labor and in limited quantities
which cannot be increased by statutory laws
nor suddenly by other means, while inconvert-
Die paper money may be produced in indefinite
quantities at a nominal cost note of the high
est denomination costing no more than the low
est, and It's volume depending solely ON legisla-
tive enactment.
The history of irredeemable paper currepcv
" u.
1t increases present prices deludes the laborer
with the idea that he is getting higher wages,
and brings fictitious prosperity from which
follow imitation of business and credit, and ex-
cess, of enterprise in everincreasing ratio,
until it is discovered that trade and
commerce have become fatally diseased,
when n GO confidence d9e is destroyed and then
and depression, and demand for relief by fur
Their issues.
A dollar legal tender note, such as is now in
circulation, is neither more nor less than the
promise of the government to pay collar to the
bearer while no express provision is made by
law for paying the dollar at any time whatever;
nor is there any existing provision for converting
it into anything that stands in tangible ratio to
a coin dollar. AS far as existing
laws go, there is no reason why the legal,
tender note of the denomination of a dollar
should pass for one cent of gold except SO far as
the government compels creditors to accept it
in discharge of obligations to pay money, and
obllges che wealth and commerce of the country
to adopt it as a medium. of exchange TO this
may be added, as an element of the value of the
legal tender dollar, the hope that the govern
QOY1n 9TH -.