The herald and mail. [volume] (Columbia, Tenn.) 1873-188?, 1875-09-10


will be a foreign one, and will add SI7
100000 to the enormous annual exports
ton Of gold to meet interest. What CO.
sideration of obligation or Of good polio
: can support this measure? In the mid
! OF financial crisis so serious as to di
! turb the foundations of our prosperit,
) we are to add this large sum to our fol
elgn debt. Why is it done? The 1882
100000 of treasury notes are held exclu
siEelF by our own people 1t is dome
tic debt. The holders are not asking il
redemption. For the present, they wan
! 1t TO remain circulating among them a
lawful money The treasury notes wer
issued as legal tenders at time wheI
they were supposed to be essential t
the maintenance of the public credit, /
was deemed expedient to issue portion
of the governments credit in the form
of currency; and therefore, the treasury
notes bear double character. They arr
at once the evidence of a government
debt, and are medium of commerce, 6
debtto bespaid land legal tender to be used
They were so issued by the government
and so accepted by the people. No time
was fixed for their redemption. The
people received them, leaving that to the
| pleasure and conscience of the govern
| ment. In the meantime they have been
used as money. Then in accordance with
| the purpose of their issue, should they be
withdrawn so as to injure business and la.
bor,until as good or a better currency can
take their place? Every obligation Of
! the government must be met and dis
| charged. Whoever questions the fidelity
of the Democracy to the country's honor
in that respect speaks without regard to
truth. / fully recognise the obligation of the
redemption of the Treasury notes, but /
cannot feel that it must be discharged at
time when it may be seriously add to our
embarrassments, and when the people,
who hold them, do not desire it. In our
present condition any addition to our for
eign gold obligations is a calamity. Will
you vote to convert this domestic, nom
interest-bearing debt into foreign, in
terest-bearing gold debit In this state
ment have made no estimate for the
sale of bonds and increase of interest debt,
which may be necessary to enable the
Secretary to redeem the eighty-two nit
ion legal tenders, which are to be dis
placed as bank bills issue.
at is now my duty to call your attention
to other probable consequences Of this
measure, more frightful than those which
| have exposed. AS the time for the re-
demption of the Treasury notes in gold
approaches, and the Secretary prepares
for their redemption by the sale of bonds
and the accumulation of gold in the Trea-
sury, they will rapidly advance in value.
During the period of two years before the
REDEEM Ution commences, persons who are
able to hold money out of active use, will
accumulate and retire the Treasury notes
for the profit of their increasing value.
he banks are permitted by law TO redeem
their bills in Treasury notes. So long as
the bills and notes are about the same
value, the bills are not presented to the
banks for payment But as soon as the
Treasury notes advance IN value, they
will be presented for payment. The
banks will anticipate that probable result
and will prepare for it by boarding the
Treasury notes for the redemption of their
paper. The probable consequence will
be that under these influences the Treasu-
ry notes will, for considerable period of
time, be withdrawn from circulation, and
our currency will be contracted to nearly
One-half its quantity. As rapidly as the
treasury notes are used in the redemp-
ton and retirement of the bank bills they
will be presented to the treasury for re
demption in gold, and will disappear for
ever. | know it is said that as soon as it
is established that they are redeemable
in gold they will not be presented, as they
will then be as good as gold. To some
extent that would be true in II time of es-
tablished compOsure and confidence, but
that will not be the condition of our cOun-
try whilst this law is being executed. Do
you not present your negotiable paper at
maturity merely because you have conf
dence in the ability and willingness of
our debtor? How long do you think the |
gold paid out in the redemption of the |
treasury will remain in the country? Will
it pass along the veins and arteries ofousi- |
ness and give life and energy? In time
of general confidence it might be so, but |
not while this law Is being executed. |
Public confidence and financial stability |
cannot be made to rest upon borrowed |
gold. This measure will increase our gold |
abroad, and because of con-
traction, will reduce production at home. |
This flow of gold abroad will continue, |
and the borrowed gold will soon be gone
In this presentation of the subject | have
not considered the possibility of any eX-
foreign demand. Any great |
financial crisis abroad or disturbance OF
he peace of. Europe, would cause our
bonds to be thrown upon our market in
arpe quantities, and a corresponding
lraft upon our supply of gold. l do not
believe we can rely upon this measure
or any supply of gold 10 our domestic
currency that will be permanent or use
nj. Substantially our reliance for cur
,ency must then be upon the banks. Will
hey be in a condition to supply it? The |
IL,
cave them under the obligation to re=
leem in gold only. Can they meet the
obligation? And with the known uncer-
ainty in the supply of gold, will they
,enture to throw their paper upon the
currents of trade III quantities at all ade-
luate to the demands of legitimate BUSH
less? The act permits free banking and
he bills are yet redeemable in Treasury
notes. What has been.the result? The
tatement of.the Comptroller, made on
;th of July, shows that since the passage
# the law, January IA, 1875, to the lst of
Iuly, nearly half year. the increase of
,ank currency is but seven thousand
i've hundred aud ffty-eight dollars.
Does this statement justify the opinion
hat after the Treasury notes have ceased
O be available for redemption the banks
viii venture their paper upon the dis
urbed currents of business? believe
he financial policy of this Administra-
ion, and of the party which supports it,
S expressed in this act of Congress, will
o contract the currency as to paralyze
IL legitimate busidess, and leave labor
n rags begging for employment. ! know
he opinion is entertained-for have
eard it expressed by many-that the
aw is so clearly impolitic that its execu-
ion will not be attempted. Did the
President in his first inaugural, not say
hat all laws should be executed, whether
hey met his approval or not? But the