The weekly Oskaloosa herald. [volume] (Oskaloosa, Iowa) 1855-1885, 1874-05-07

! !. oii0 huuUfeQ mil
non OF dollars, less only the amonn,
OF reserves restrained from circula.
tloh Dy the PROVISIONS OF the second
section. The measure has been sun
ported on the theory that it wonlf
give an increase of circulation r
is fair inference, therefore. that !
in practice the measure should fai
20 create the abun dance of circula
tion expected of ii, the friends of the
measure, particularly those out OF
Congress, would clamor for such in
tiation as would give tho expected
relief. The theory, in my belief, i:
departure from true principles o.
finance, National interest, National
obligations to creditors, Congress
ional promises, party pledges, on
their part with political parties and
personal views and promises made
by me in every annual message sent
to Congress and in each inaugural
address.
In my annual address to Congress
in December, 1869, the following
passage appears: "Among the evils
growing'out of the rebellion and not
yet referred to, is that of irredeena- a.
BILE currency. 1t is an evil which
hope will receive your most earnest
attention. 1t is duty, and one of
the highest duties of a government
to secure to its citizens a medium of
exchange of fixed and unvarying
value. This implies return to a
specie basis, and no substitute for it
can be devised. 1t should be COM
menced now and reached at the ear
liest practicable moment consistent
with tair regard to the interest of
the debtor class. Immediate resump.
ton if practicable would not be de-
sirable. II would compel the debtor
class to pay beyond their contract,
the premium on gold at the date of
their purchase, and would bring
bankruptcy and ruin to thousands.
Fluctuations, however, in the paper
value of the measure of all values in
gold, is detrimental to the interests
of trade. 1t makes the man of bus
ness an involuntary gambler, for in
all sales where future payment is to
be made, both parties speculate as
to what will be the value of the cur.
cency to be paid and received. /
earnestly recommend to you, then,
such legislation as will insure graz
ual return to specie payments an
put an Immediate stop TO tluctu uation s
in the value of the currency"
| still adhere to the views then ex-
D ressed. AS early as December 4th,
1875, the House OF Representatives
passed a resolution by vote OF l44
to 6 concurring in the views of the
Secretary of the Treasure III relation
to the necessity of contraction Of
the currency with view to as early
a resumption of specie payment as
the business interests of the country
would permit, pledging cooperative
action to this end as speedily as pos
sible. The first act passed by the
Forty First Congress on the 18th of
March, 1879, was san act to strength.
en- the public credit of the United
States" (Here the act referred to
is inserted in FULLY This act still re-
mains as continuing the pledge OF
of faith of the United States to make
provisions at the earliest practica
BILE moment for redemption of United
States notes in coin. The declara-
tion contained in the act of June
goth, 1864, created an obligation
that the total amount of United
States notes Issued, or to be issued,
should never exceed S400,0O0,00
The amount in actual circulation
was actually reduced to s356, 900,
600, at which point Congress pass
ed an act February 4th, 1868, sus-
pending further reduction of the
currency. The $44,Oo0,0OO have
ever been regarded as a reserve to
be used only as an emergency, such
as has occurred on several occasions,
and must occur when from any
cause the revenues suddenly fall be
low the expenditures, and such re.
serve is necessary because fraction.
al currency amounted to fifty mil
hons ia redeemable in legal tenders
on call. 1t may be said that such a
return of fractional currency for re-
demrtion is improbable, but let steps
be taken for a return to specie basis
and it will be found that silver will
take the place of fractional currency
as rapidly as it can be supplied.
When the premium On gold reach
es sufficient low point, with the
amount of United States notes to be
issued fixed permanently within the
proper limits and the Treasury so
strengthened as to be able to redeem
them in coin on demand, it will be
then safe to inaugurate system OF
free banking with such provisions as
to make compulsory the redemption
of the circulating notes of the banks
in coin or United States notes, them
selves redeemable and made equiva.
lent to coin, as a means preparatory
to free banking, or for placing the
Government in position to redeem
It's notes in coin at the earliest prac.
ticable moment. The revenue of the
country should be increased so as to
meet current expenses and provide
for a sinking fund required by law
andalso a surplus to be retained in the
treasury in gold.
l am not believer in any artifi
cial method of making paper money
equal to coin, when coin is not own
ed or held ready to redeem the
promises to pay, for paper money is
nothing more than promises to pay
and valuable exactly in proportion tc
the amount of coin it can be conver
ted into. While coin is not used al
the circulating medium or currency
of the country, it is not convertible
into it at par, it becomes an article
of commerce, much as other pro
ducts. The surplus will seek for
eign market, as will any other sur
plus. The balance of trade ha.
nothing to do with the question. The
duties on imports, being required>ir
coin, create limited demand fol
gold, and about enough to satisfy
that demand remains in the country.
To increase the supply ! see no way
open but by the Government hoard
ing through the means above given,
and possibly by requiring National
banks to aid.
1t is claimed by the advocates o
the me asure herewith returned tha