The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1875-08-18


bill which the President vetoed, /
said I'VE must take the 3reenback
% We find it Its character cannot
now be changed, and the promise to
pay il in coin il an unanswerable rea-
con why it cannot be substituted Tor
the national bank notes. Another
reason Why it cannot be substituted
for the national bank notes is that In
the act of June 80 = was declared
that. nor shall the total amount Of
United States notes issued, or to be
issued, ever exceed 500, OO0, 900, and
such additional sum, not exceeding
$50, 600, 600, and may be temporarily
required for the redemption of tenn
pOrary loan This was in the nature
of . contract with the purchasers of
our bonds, that the amount OF 500,
600, 600 cannot be exceeded without q
breach Of faith"
THE ACT OF 1869.
This new doctrine created great ex-
element throughout the country, and
alarm among the national creditors,
and was Justly regarded as fragrant
repudiation, and myself, at the first
opportunity, denounced it as such.
This scheme was by its advocates
blended with the right asserted by
others, to use the original legal tender
notes authorized and issued before
the bonds were sold, and with which
they had been purchased in payment
of the principal of the bonds, and led
Congress, in 1869, to pass a bill known
as an act to strengthen the public
credit. declaring that the fve-twenty
bonds we're payable only in coin.
The massage of that act settled the
question. 1t was brought about by
Mr. Pendleton's proposition, but set
tied the question equally with regard
to the original legal tender notes.
Since that time the bonds have been
bought and sold on the faith of the
express declaration that they were to
be paid in coin; and the attempt to
nav them in anything else now would
be reputation and national dishonor.
The question, therefore, of the mode
of paying the fve-twenty bonds must
be considered as settled, if anything
can be considered settled where the
Democratic party is concerned. II
Democrats now complain OF the act OF
1869, let them console themselves
with the reflection it was the work OF
r..
was brought about by the shock and
alarm which his proposition gave to
the moral sense Of the nation.
THE BILL VETOED BY THE PREsI-
DENT.
I come now to the question OF the
redemption of legal tender notes and
the resumption of specie payment.
No one has ever denied that these
notes are a promise to pay the amount
In coin, and constitute part OF the
public debt. In April, 1874, a bill
passed both houses of Congress,
which was vetoed by the President,
and in regard to which wish to say
q word. This bill declared the maxi
mum amount of greenbacks to be
800, OOO, 600, of which all but SIS Ug,.
600 were then in circulation. Ii did
not require the government to put the
remaining eighteen millions into cir
culation, but simply declared the law
to be what President Grant and the
Treasury Department, since 1868, had
assumed it to be. that under the acts
of 1862 and 1863, the greenback cir
culation might be kept at $4OO, OOO,OO0,
about which, however, there was much
doubt and discussion, and both the
President and Secretary of the Treas
ury had asked Congress to settle the
doubt. The bill further authorized
the increase of the national bank CIR
culation, in States having less than
their proportion, to the amount OF
fiftv-four millions. 1t was not ex-
pected this circulation would be is.
sued rapidly by the establishment OF
new banks, and this has since been
justified by experience. But the bill
contained another provision, requiring
national banks to keep their green ).
back reserves in their own vaults, and
not deposit them in New Y ork, where
thev we're loaned to stock jobbers and
passed into circulation, and undoubt-
edIv gave rise to bitter opposition to
the bill. The bill was framed with a
view to the condition of the country,
then suffering from the panic, and
did not claim to be full settlement
of financial questions, and left tho
question of return to specie payments
to be provided for afterward.
THE FINANCIAL ACT OF LAST SESSION.
When Congress assembled last De-
camher there was a general convic-
t;on among its members that some
financial measure should be passed to
remove the doubts and uncertainties
prevailing in the country, and that 1t
was the duty of all to abate something
If their opinions, if common ground
could be arrived at, upon the mos,
material questions. A great diversity
IF views prevailed among the mem
bers of both parties. A very few
were in favor of repeating the legal
tender act and thus forcing resump-
ton at an early day. Some were IN
favor of contracting the volume OF
currency until that remaining IN CIR.
culation was brought to par. Others
were in favor of fixing day for re-
sumption so far in the future that
business could prepare for 1t, and the
transition be gradual and easy. 9TH
ers again were in favor OF such
measure as would enable the currency
to be expanded if the business or con
dition of the country required it; but
the action of the President, and his
known opinions precluded the posi-
bility OF any such measure: a oil
was prepared which received thu
votes of every Republican Senator
save one, and of all the Republican
members of the House, except few
from the Eastern States.
THE BILL A COMPROMISE.
The bill was in its nature com
promise and middle ground. 1t rec
opnized the greenbacks as a part o
the public debt. and the obligation o
the government to pay them IN COIN
and fixed the LIST of January, 1879
for the period, four years from tn
time of its passage.
It was provided in the bill tina
when the time arrived the Secretar.
Of the Treasury might employ tn
IN tho Troasury for tn