The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-01-23

M. Boutwell, keeping In view the legis.
iatlon OF Congress, 1t was the duty OF thl
secretary OF the Treasury to do 80. Judp
ing from the policy Of Congress his conclTi
sion would be that $3.50, ,600, 900 was thI
amount Of currency to be kept in circula
lion, and when the exigency passed 1t wa
the duty OF the Secretary to reduce thC
volume OF currency to $865, 100000. III
argued that the issue Of $44, ,000, 900, In hi
Judgment, was consistent with the public
Interest In the highest degree, and tht
Secretary oi the Treasury could not sii
silent AMI inactive while ruin and disaster
70 the country were apparent. BE opposed
permanent increase Of the currency.
de denied that any pledges Of the Gov.
eminent had been violated. The act oI
March 1853 declared that the holders Of
notes might between March and the lol-
lowing July convert their notes into U, 8,
bonds, and they had that time TO make
such conversion. he favored the return
to specie payments with such limitations
as set forth in the annual report Of the
Secretary of the Treasury In 1879. A
statement had been made here that du-
ring the first iour years no progress had
been made' toward the return Of
specie payment. This he denied.
In 1869 the average price OF gold was
32t per cent, and in 1870 less than
10 per cent, In II less than 10 per cent,
Ia ~ Il was 10 4.10 per cent, add In '73
13 "a 100. Did not these facts, by them
selves considered, demonstrate the fact
that In those four years we had made
progress toward specie paymentS
MIR. Morton inquired Il the gentleman
did not attribute the decrease in the price
of gold in 1869 to the fact that Congress
passed then an act TO strengthen the pub.
lie credit
Mr.. Boutwell, replied that he attributed
much Of the cause Of the decrease 10 that
act But the depreciation in the price OF
gold was not due exclusively TO the pass
age OF that act; Il was due also to the
increase OF the business Of the country,
He looked for the ultimate and not far
distant equalization OF our paper cur.
rency and coin, and until that time ar
rived any policy looking to the resumption
ofspecie payment would be frsught with
the greatest danger. With initiation inter.
est on money would continually advance,
Money grew cheap in New York when
business men were at watering places,
but as fall commenced the demand in
creased and interest advanced. After the
crops had been moved it became plenti-
tul again and interest became lower.
These changes were found to occur every
year. He argued that 1t was possible to
have deprecated currency and yet paper
circulation could be nominally redeem.
able in coin. He opposed free banking
system. Under it the currency of the
country would be vastly increased, and
when the time Icame TO resume specie
payment those banks would be unable to
respond. He was opposed to the propos.
ition of his colleguo (Sumner) for con-
vertible bonds. and expressed the opin-
ion that 1t would result in the boarding
OF money 10 the injury Of the business in.
terest OF the country il currency was con.
tracted so as to resume specie payment.
Let It be done openly, so that every bus.
iness man could see what was going 10 be
done, and shape his business accordingly.
Was 1t to be presumed for moment that
we could gointo the markets OF the world
and purchase coin With which TO redeem
legal tender notes. The whole banks OF
England and and the money market Of
Europe combined would be arrayed
against US. The great fortunes accumu.
lated during the war by individuals would
put 1t in the power Of few men 10 or.
ganize themselves to prey upon the Gov.
ernment. 1t was possible for men in
New York to mass, for the purpose of
speculation and control, ten, twenty, or
even thirty million dollars, and Il the
plan proposed by his colleague, Sumner,
should beadopted, these men would work
ruin to the Treasury by putting their
money into these convertible bonds when
money was plentiful, hold their bonds till
q scarcity OF money occurred, when
they would have them redeemed, and pre-.
cipitating an additional volume OF cur.
rency on the country, would initiate prices
and do a great deal Of damage. The
plan Of returning to specie payments a
year from now was also very obiectiona-
BILE, as he had shown. The Government
could not get gold to do it, and II the time
for return should be fixed at a year from
now the Government could not stand the
shoek. After redeeming fifty or one hun.
dred millions the Treasury would be
compelled to close Its doors. Enough
coin could not be accumulated In
the Treasury In o year to pay our notes,
and 1t was impossible to get It from Eu-
rope. The only escape Is TO allow the
Secretary OF the Treasury to 60 into the
markets Of the country and buy our per
cent bonds at market prices with the pro.
ceeds derived from tho sale Of 8 per cent
bonds. The Senator from Missouri (Mr,
Schurz) Is in favor-o OF resumption. Let
him show how It can be done. He (NIr,
BoutwelO had observed q disposition TO
put more confidence in the days OF the fu.
ture, Of which we know not, than in the
days Of the past Of which we know.
Mr.. echurz said that the. discussion now
was merely upon the resolution directing
the Finance Committee, toreport bilI,
and not upon specific means for specie re.
When the committee have
reported bill he he would discuss spe-
cific measures. There had been an infla-
tion Of the currency now amounting to
$27, 100000. II this process went on even
to the extent Of the $44, ,000, 900 reserve he
was not sure but It would be followed
by events corresponding with those in
New York In September last. He there
fore thought It the duty Of Congress 10 |
legtslate Immediately to prevent such dis.
aster. It was not, in his judgment, the
true plan TO borrow money TO return 10 re-
turn to specie payments; neither was Il |
right 10 issue bonds to raise money. BE
asked now, after astruggle Of five years, Il |
1t was right to strengthen the credit Of the |
country, now in time Of peace and com.
paratiye prosperity, by going into our
markets and the markets OF the world,
begging for money TO pay the current ex-
penses Of the country. There Is but one
remedy. and one means to ward of the
na