The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1874-06-12

earliest practicable day, not only in compli-
ance with legislative and party pledges, but as
a step indispensable TO lasting national pros
perity. believe. further, that the time has
come when this can be done, or at least
begun, with less embarrassment to every
branch of industry than at any future time.
After resort has been had TO unstable and
temporary expedients to stimulate unreal
prosperity and speculation ON basis other
than coin, the recognized medium OF
exchange throughout the commercial world,
the particular mode selected to bring about
the restoration of a specie standard Is not
of 80 much consequence as that some ade-
ouate plan be devised, the time fixed
when currency shall be exchangeable
for coin at par, and the rian adopted
rgidlv adhered to. 1t is not probable
that any legislation suggested by me would
prove acceptable to both branches OF Congress,
and indeed full discussion might shake my
own faith in the details Of any plan might
PROPOSE | will however, venture 10 state
the general features OF action, which seem TO
me advisable-the financial platform on which
| would standard any departure IRON which
would be in spirit of concession andharmony
in Difference to conflicting opinions.
First-I would like to see the legai-tehder
clause. so called, repealed the repeal to take
effect at some future time, ray July l, 1875.
This would cause all contracts made after that
date for wages, sales, etc, to be estimated III
coin 1t would correct our notions OF values
the specie-dollar would be the only dollar
known as the measure OF equivalents wheh
debts afterward contracted were paid in cur
rency. Instead of calling paper-dollar a
dollar, and quoting gold at so much premium,
we should think and speak OF the paper as at
so much discount. This alone would ala
greatly in bringing the two currencies nearer
together at par.
Second-I would like to see provision that
at 3 fixed day, say July 4, 1876, the currency
reissued by the United States should be re-
deemed in coin Oh presentation to any Assist
ant Treasurer, and that all currency 80 re-
deemed should be Cancelled and never rels-
sued. To effect this, it would be necessary
TO authorize the issue OF bonds payable IN
gold bearing such interest rs would command
par in gold to be put out by the treasury only
in such sums as should from time 20 time be
needed for the purpose of redemption. Such
legislation would insure return to sound
financial principles in two years, ana would,
in nv Judgment work less hardship to the
debtor interest than is likely to come from
putting off the day of final reckoning. IL
must be borne in mind. too. that the credit
interest had its day Of disadvantage also,
when our present financial system was brought
in by the supreme needs of the nation at the
time.
would further provide that, from and after
the date fixed for redemption. no bills,
whether of National Banks or of the United
States returned to the Treasury to be eX-
changed for new bills, should be replaced by
bills of a less denomination than $40, and that
in one year after resumption all bills OF less
than S5 should be withdrawn from circulation,
and in two years all bills OF less than $40
should be Withdrawn. The advantage of this
would be the strength given to the country
4 lflfaf from
war, failure of crops, or any other cause, by
keeping always in the hands of the people
a large supply of precious metals. With
all the smaller transactions conducted III
coin, many millions of it would be kept III
constant use, and of course prevented from
leaving the country. Undoubtedly, the poorer
currency will always drive the better out OF
circulation. With paper a legal-tender, and
at a discount gold and silver become articles
of merchandise as much as wheat or cotton.
The surplus will find the best market 1t can.
With small bills in circulation, there is no use
for coin except to keep 1t III the vaults OF
banks to redeem circulation. During periods
of great speculation and apparent prosperity
there Is little demand for coin, and then 1t
will flow out to a market where 1t can be
made to earn something, which 1t cannot do
while lying idle. Gold, like anything else,
when not needed becomes a surplus, and,
like every other surplus. 1T seeks a
market where IL can ma one. by
giving it active employment, however, its
presence can, it seems to me, be secured, and
panics and depressions. which have occurred
in times of nominal specie pay
ments, if they cannot be wholly prevented,
can at least be greatly mitigated. Indeed
question whether it would have been found
to depart from the standard of
specie in the trying days which gave birth to
the first legal-tender act, had the country
taken the ground of no small bills as early as
1850. Again, 1 would provide an excess of
revenue over current expenditures. l would
do this by rigid economy, and by tax
alton where taxation can best be borne III
creased revenue would work a constant reduc-
ton of the debt and interest, and would pro-
vide coin to meet the demands on the Treas
lry for the redemption of it's notes, thereby
the amount Of bonds needed for !
hat purpose. ALI taxes, after redemption be-
gins, should be paid in coin or United States |
notes. This would force redemption on Ma
ional Banks. With measures like these, or
which would work work out such re-
'ults, l see no danger III authorizing free
banking without limits.