Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1875-08-13

|
t1s0Oo,0O0 out OF the elOo 0OOO The most OF the
greenbaoks had been issued and all were author
bonds were first put upon the market, and il was
| with these notes that tho bonds wore purchased
from ~ t9s e9yernmeIt a. par II wa.s'he opinion
saTn. ana out q o. Y. that as these notes, by The
in payment OF ali public debts except interest on
| bonds and duties on imports, the Government had
q right to use lhsm IN payment Of the principal Of
| the nve-twenty bonds. In favor Of this opinion,
the Finance Committee of the Senate unanimously
reported in lsG6-Senaior sherman being chair
man, high authority, he having participated In
making all the laws upon the subject TO this
conclusion subscribed fully, as question Of law,
but with the expressed opinion that they should
not be used for that purpose until they had been
brought to par.
THE POISONED INGREDIENT IN THE oAULDRoN
In 1867 o new financial school sprang into exist
ence, OF which MIR. Pendleton OF Ohio was the
distinguished head asserting the right and the
twenty bonds had been sold, and IN vio-
aiion OF the pledge given in tho act
to maTG n indefinite noSnt bsyoSd sySS Sa
s4OO,OO00OO and compel the holders OF bonds to
oeiye them in payment This new scheme was the
poisoned ingredient in the financial cauldron, and
the most demoralizing proposition ever thrust into
American politics.
favor OF extending the grecnback issue beyond the
SiOOOOO,QOO In speech in the senate in 1874. just
vetoed, said: 'We must take the greenback as
We lind it. Its character can not now be changed,
ana the promise to pay IL in coin is an unanswera-
Dle reason why 1t can not be substituted for the
| National Bank notes. Another reason why
10 can not be substituted for the National
Bank notes is that, In the act of June 80,
IL was declared that. nor shall the total amount
OF United States notes issued or TO be issued ever
exceed AOO0OO00O and such additional sum. not
exceeding s5O,0OO,O0O as may be temporarily re-
CURED for the redemption of a temporary loan
This was in the nature OF contract with the pur-
cnasers OF our bonds, that the amount of S4OOOO0,
900 can not be exceeded without breach of faith
THE ACT OF 1859.
| This new doctrine created great excitement
! throughout the country and alarm among the Ma
tional creditors. and was justly rega ded as lla-
tunity, denounced it as such. This scheme was
| by its advocates blended with the right asserted
authorized and issued before tho bonds were sold
and with which they had been purchased in pay.
ment of the principal of the bonds and led Con
gress, in 1862 to pass bill known us an act to
strengthen the public credit declaring that the
passage of that act settled the question II was
! brought about by Mr. Pendleton's proposition
| 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 cOni and the attempt TO pay them in
anythlng else now would be reputation and Ma
The question, therefore, OF the mode of paying
the hye-twenty bonds must be considered as set
the Demoerac party is concdn9d If
now complain OF the act of 1869, let them console
themselves them Sc YES with the reflection that it was the
brought about by the shock and alarm which his
proposition gave to the moral sense of the Nation.
| 1HE BILL VETOED BY THE PRESIDENT.
come now 10 the question OF the redemption of
| legal-tender notes, and the resumption Of specie
payment. No one has ever denied that these notes
! are promise to pay the amount in coin, and con
sttute part OF the public debt. In April, 1874 a
bill passed both houses of Congress, which was
wish to say a word. This bill decisred
the the m maximum XII amount Of greenbacks to be
then in circulation. It did not peouire Mire
the government to put the remaining eighteen
| what Pfpqi1nhf nd ha Tpaa
Department, since 1868, bad assumed It to be- that
under the acts OF 1862 and 1863, the Greenback
cuation might be kept at $500 900 OOO about which,
| however, there was much doubt and discussion
and both the President and the Secretary of the
| treasury lad asked Congress to settle the doubt.
The bill further authorized tho increase of the Ma
tonal Bank circulation. in States having less than
lions. 1t was not expected this circulation would
be issued rapidly by the establishment of new
banks, and this has since been justified by expert
ence. But the bill contained another provision,
requiring National Banks to keep their greenbuck
| in New York, where they were loaned TO stock
1obDers and passed into circulattOn and this IL was
undoubtedly gave rise to bitter opposition to
the bill. Tho bill was framed with view to the
panic, and did not claim TO be full settlement OF
| financial questions. and left the question OF re-
ward.
THE FINANCIAL ACT OF THE LAST SESSION.
| When Congress assembled last December there
| was general conviction among its members that
|
move the doubts and uncertainties prevailing in
the country, and that it was the duty of ali TO
aDate somelnlng OF their opinions IL common
ground could be arrived at upon the most material
| questions. A great diversity of views prevailed
were in favor OF repeating the eRal-iender aet.
and thus forcing resumption at an early day.
currency until that remaining IN circulation was
| brought 10 par. Others were in favor of
future that Susness oond 50 prepare 1sF IN tns o
II, and the transition be gradual and easy.
Others again were in favor of such measure as
would enable the currency TO be expanded IL the
| business or condition of the country required it,
but the action OF the President and his known
| opinions precluded the possibility of any such
measure. A bill was prepared which received the
W votes a Of Of every Republican Senator save and
eept Few from the Eastern States.
THE BILL COMPROMISE.
| The bill was in Its nature compromise and
middle ground. IL recognized greenbaeks as a
part of the public debt and the Obligation of the
Gsvernment to pay them in coin, and fixed the 1st
OF January, 1879, for the period. four years from
1t was provided in the bill that when the time
arrived the Secretary OF the Treasury might em-
demption of greenbacks, and If that was not sum
clent, might procure enough. by the sale of bonds
az pes; tne ponds I not 10 bear greater rate Of
four years notice the business OF the country
sonld be prepared & red without shock or injury for
sumption, and that as the time approached, say to
backs would gradually depreciate and be
then there would not be, > large demand 70
| exchange them for coin. The bill provided that
| the greenbacks should not be retired SO as 10
leave less than three hundred millions In ciroula-
tiOn, and 1t contemplated that they should con
Time to be part OF the circulation, and the main
purpose was 10 improve their quality aud bring
them to a par value; and with them the bank
notes, which were redeemable in Rreenbaoks
When the panic took place believed that the pc
riod OF resumption was necessarily postponed for
considerable time, and that the true remedy and
reher IRON the panic was that which had
been successfully employed in England for
more than a hundred years when financial
panies eame-that ls, moderate increase of
| the currency; ana / advised the President 10
pour into circulation the forty-fOur millions re-
serve of greenbacks then in the Treasury. The
Increase In the currency which I sought by 1egis.
latton was by the extension OF the National bank
ing system, and not by a further issue OF green
backs.
In a speech in the Senate on the nth Of Janu-
ary, 1874, said;
81 am not speaking OF increasing the greenbacks
beyond the four hundred millions. including the
forty-four millions OF reserve, hut am speaking
OF increasing the National bank circulation forty
four or nifty millions. so to make the States
equal, and requiring 1t TO be redeemed in green
backs. That would not oheapen tho greenbacks;
WOuln NJ our