, 1874-12-08

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oboy md execute such lars ~ Congress may
0lIauk. 80,
Whlo 1t seoms to 90 very generally conoedod |
that resumption Of apccio Payment 10 cssehtAI
to tho honor Of tho Government aiid to the 8c,-
ornl welfare tl,e vinMs Of Intelligent and Woll-
Informed potsoab % to tho best inethoa M o, toa
that hays hcen gaggcs!cd 10 mnt'farlo1ls. tsss
tho Secretary fens embarrassment 10 nI1RgostdE
plnt. tim dcta!s Of which commend themselves
to CongresH. hut thore aro ono or two funda-
nontrl ldcas underlying tho subIoct which, It Is
beloved. must bn tho basis Of any practicable
plan for resumption, and arc, therefore. sub.
nlttcd for thu cnnnideratiou or Congress.
It Ia obvious thnt theru can bo no resumption
by tho Govcrnnlent 60 long Al the volume OF
raper currency is largely in oxcoas OF lilo poss-
bio amount OF Goin available or That purpose
which may come into tho Iroay',ry In my yoar,
aud while no provision IL nude for tho con-
yeralon Of ths papor money into anytl,ing hav-
INK ,oarer rotation TO coin nor ia 1t possible
| for the banks or people 70 resume no loug ns
The larEo amount Or ffeoonane 10 n, paner now IN
for oil private debts with reference lutli to tho
| PAS. and tho future. }Vllo this 8tatc Of tllnEu
lasts gold will enntinuo to flow from til. and Hid
employment vlluto tho iln.usal laws OF Trade, ui-
obstrIctod by restraining Legislation. makes tta
! daily uso Indispensable.
| Tho Secretary, therefore, recommends Coa-
grcas to pyoyiuo By Inv that alter an carly and
I HxDd HAY U1llCa 9t1LGb uOLgb Hut!! coAsu ~ Up
lcga! tc,ltor no to contracts theronttor made:
! Bit this provision should nos apply to official
salarton or to otllor ordinary expenditures
Of tho Government under then existing
9ntr1cs o. IT, n ~ oSl%een ,o
q auflciont poriod should o!apao 20 onablo tue
| poop'o aud bp',ls to prepare ior tho iatttr BY
suci gradual processes III business rs will nctFl-
uca. nor suddenly Increase tho obllgations OF
eobtoru. Tho auddon ansl Immediate apprecia..
ttou Of tue papor dollar to Its par val1e in gold
IL not only no necessary c!omont Of redemption,
during tho period Of tho War tho Loga!-Tonder
acta opotased 40 ba1,krttpt law, compelling
creditors to glvo ao4uitta,1cos upon tho receipt
Of lese than tho full amount OF thelr aohts tl,is
now compel debtors at onco to pay essentially
moro than they baso, contracted to pay;
Tho adoption Of such measures ~ will
not suddotily incroaso tho obligations Of Debtors
will 60 far to allay aud dicarn whatever popular
oppoait!on to resumption OF specie paymonsm may
nov exit, and, besides, would DO but tust to tue
debtor class. Tho day from which nav contraots
| lslllat ba discharged in coin Hlould be tlzed
euicie1tly far ia :ldsa,'co to give tho poope and
themselves Tor it, It ID beloved that not many
months nil ho uocoHsGry for that purpose; but,
tn avoid the luisehets already Indicated THU day
ehould prccetla tho day Of tnal resumption BY O
longer penod. The tlne SHOULD not. in tue opln-
yoa,p, aud might safely bo mado az much lcAa M
in tho Judgment Of Congress- would sufficiently
protccs tho interest OF toptorp end avold tho sYs
Of too sudaon contraction.
The law should also authorize tho immediate
conversion Of logal-tcnder notes into bouds
bearing low ratio Ut lllsercst, which,, shle its"
| vitng conversion, should not be 10 high "a to
appreciate the legal-teuder notou rapidly. and
thereby operate opproshlycly on tho debtor
class. As an additional induceInent TO tho con,
version Of United Statoa notes into thoBa bondd
at q low rate of interest, authority. SHOULD b.
Eivon 70. making thom security for The eircala'
ton Of Nat1onal Ban!ta. Tho law should fur.
/ ther provide tho monna for tho redemption oi
euch noteR - 1aay 10 presented Tor that pur.
poyo when tho portod or resumption shall Anya
boon reached. 70 thiA end. tho Secretary should
b. authorized to mako loan not exceeding tht
total amount Of notes remaining nnconverted
at ihs time of resumption, losa the surplus zeyc
nue to b. madc applicable to such resumption. n
is probable that tho gradual and continued
revenuoa that large loGn will not be requirel
for this purpose; but it IL advisable TINT the
Secretary be authorized to mako 1t in ordo,
to 1eot tho contingency Of failure Of sufficient
. by issuing bonds to run for such tme as the
wisdom Of Cungrags may suggest, aud to be eis.
posed Of from time to timc Gs tho necessisioa ol
tho easo nay roqulre: u VI sl.e opinion Of the
riod. and Should bear interest at D znte not ex-
ceeding the lowest raeo which tile Government
may thcn ba paying III retunding its 6 rcr ccni
seourities. Any substantlal Or useful moyomen
for resumption necessarily Involves supplying
the Treasury With Increased nnouf,ta Of coin
, either by Increased revenues Or IN RleQuat,
! lonu. The present condition Of the crodt O
: the Government. which would bo further On
| haueel by tho adoption OF moasnrcs for returl
TO specte baais, leaves no room for doubt thu
! q Ioar for auch purpose would ho readily takol
, at a low ratio Of .iutarcst Measures should alss
be adopted requiring the banks to bold gold re
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But tho Secretary docs not deem it proper II
| purAuo the matter into further dotail. II Con
EregH thal conclude, as lie earnestly hopeaie will
, that the time las arrived for tho enactment Of
| payments, it's own wisdom will supply the tecea
. l. sary methods. That which III Of thelighest i'm
portanco ia the adoption Of tho dofnto policy O.
! | resumption. In Wow Of tue great aud pressing
uoymeDt conHonant with ateadinosa OF huHluoaI
and avoidance of violeus and sudden contraction
discussion OF mere details In advance bocome
Of little practical consequence. What ia deMnnd
, ed by tho best interests Of tho Government ant
| the people, aud by tho hlghost considerations o
virtue Rnd morality, ia that Congress sllall unlt
that state Of things Which ouly tlo necessitieE
of war justified or required IN this respect
, 4 yrise mobilization OF existing etntuteB, wlcl
noither enable nor permit tho executive brancl
, Of the Government to oftoct tho rcstoratiou OF
sound cuIrancy, will leave tho laws Of tralo fro,
to resume their operations and many mastora O.
| QcEAlk WILL Hnlubk t4eul6EFE1s hAGA tA1 1VF
, eminent ahal hayo resumed speea payment, j
| may be expected that gold will flow into th
country In obedience to the law Of supply aux
, tlomnul; the export OF our gold product vii
; greatly diminish and tho millions Of gold whct
! now constitute only commodity OF trade will re
sumo its proper functions by becoming again
part Of tho circulating medium. With tho aaop
, tion OF tho policy Of resumption. free banking
lnay nafely bo allowed, aud tho deficit Of the ae
taal amount OF coin available for ciyoulh.ion cal
be supplied by banl: notes convertible into coin
in lieu Of M iuconvortibls paper currency
The businosB OF tue country has not yot roooy
erott from thedisastets OF tho iase yoara hnancia
pa,,!o the cansos OF which It IL BY no moan
diflcnlt to trace. It the dircct and in,.nedi
, ate result OF that excessive Development O
speculative ensorprisca, oyerttodng. ind lnla
ton Of credit which invariably follow iKsuaB a
inconvertiblo paper currency. Ths almost bound
loss resources and enerGios of tbs country nun
compel tho gradual Ut business
but tupitat, With ia accustomed aenstiyeness t
dauEer, IL slow to return to the ayanuea Of trata
, Values arc 1luctnati1G mud uncortain.> Labor 70
, ceiyeB its reward III currency that 10 unsteady
: ann whose purchasing power cllnpgoa almoa
+ dai]y. Netl,er tho reward OF labor nor the yalu
Of commodities is measured by any certal