The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1875-12-10

In view of those solemn aud repeated
pledges, it se ems idle to resort TO the consid-
erations OF elementary principles Of finance
to prove the evils of an irredeemable per
currency. In tho face OF such pledges, dis.
regard of which woud bring national dishon-
or, and serious, il not irreparable injury. to
the public credit, it can hardly be necessary
to discuss questions Of expediency, or TO
point out the ills which the experience OF the
civilized world shows must follow violation
of we'l-known laws of political economy.
II ID among the first and most important
functions OF government To give to it's people
sound and stable currency, having fixed
relation to the standard of values in general
use among nations. The true matter with
which government has to do Is not 80 much a
question OF volume as Of soundness and sta
bility of the currency. When il has estab-
lished n currency Of fixed and stable value,
having known relation to that of other
powers, and furnishing uniform medium of
exchange, the volume may and should be
left to be determined by the wants of
trade and business. Natural causes, aided
by individual effort aud enterprise, will
! regulate the volume of currency fai more
wisely and with greater safety to business than
acts of Congress imposing artificial limits, sub
ject to increase or dlminution ut every session.
The existing provisions Of law making United
States notes legal tender for all debts both pub
lie and private, with certain exemptions relating
to transactions with government, il an artificial
barrier to the use of gold and silver tending
not only to prevent the flow Of gold toward this
country, but promoting the shipment abroad of
our own production Of the precious metals. For
this reason Congress should abolish the legal
tender quality Of the notes, az to all contracts
made, and liabilities arising after a fixed day.
The first day OF January, 1879 being already
fixed by law rs the time when the redemption
of United States notes then outstanding shall
begin, it would be proper and safe to provide
that such notes shall not be legal tender for con-
tracts made, liabilities incurred after the first
day Of January 1877. Such an act would not
too suddenly change the value of the
notes, and wouldS Lot affect injuriously
either debtors or creditors, but would
remove present obstruction to the retention of
our gold and silver production, and create
demand for the return Of gold now abroad, thus
promoting final resumption by preparing the
country for it.
= In furtherance Of the purpose Of the act of
the last Congress to provide for the resumption
Of specie payments, the Secretary recommends
that authority be given for funding legal-ten.
der notes into bonds bearing low rate of in
terest. Such bonds should run for u longer period
of than those now authorized for refund
ing the Understanding debt. and should be
made available to national banks for deposit to
secure their circulation and other liabilities to
the government, and should bear rate of in
ton of the notes. 1t seems probable that
bond bearing interest at the rate of four per
cent. would invite the funding of sufficient
amount of legal-tender notes to
lessen materially the sum of gold
which, in the absence of such provision,
must be accumulated in the treasury by the
LIST of January. 1879, to carry ont the impera-
tive requirements Of the act of January IA,
1875. Ii it be apprehended that authority to
the Secretary to fund an unlimited amount
of notes might lead to too sudden contrac-
tiou of the CURRENCY. Congress could limit
the amount to be funded in any given period
of time. The process being in no sense COM
pulsory az to the holders of United States
notes. and the rate of interest on the bonds
being made low, it is not probable that cur
rency which could find profitable employment
would be presented for redemption in such
bonds. Only the excess of notes above the
needs Of business would seek such CONVEX
sion. Authority to the Secretary of the
Treasury to redeem and cancel two million of
legal-tender notes per month by this process
would greatly facilitate redempt ton 1T the
time now fixed by law, and besides would
have the advantage OF publicity to the exact
amount to be withdrawn IN any gwen month.
Bonds issued for this purpose should be of the
denomination of fifty and one hundred dollars,
and any multiple thereof, in order to meet the
convenience OF all classes of holders Of United
States notes. The faith of the Government
now stands pledged to resumption on and after
January l, 1879, and to the final redemption
and removal from the currency Of the coun-
try OF the legal-tender notes as fast as they
shall be presented for redemption. according
to the provisions of the act of January ii,
1875. To resume on the LIST of January, 1879,
without further legislation, would require the
accumulation of a large amount of gold in the
Treasury in order to avert the possibility of
failure of the plan. Such an amount of gold
] l.
out more or less embarrassing effect upon the
trade and commerce of our own and other coun-
tries. The present abundance and cheapness
OF both currency and capital presents a
favorable opportunity for the withdrawal and
redemption OF a considerable part of the out
standing legal-tender notes. thereby making
easy and effectual the redemption now pledged.
Such withdrawal OF legal-tender notes, thus dis
pensing with the necessity for accommodating
gold in tile Treasury in proportion to the amount
withdrawn, would tend to appreciate those re-
manning outstanding and make it easier TO pro-
tect and keep in circulation the silver coin now
authorized to be issued.
The act last referred to is an express recog.
milton OF the duty and obligation of the govern.
ment to resume specie payment at the day
therein named; and, however widely differ.
ent may be the views of intelligent persons
upon the means adopted by Congress. it il
gratifying to know that the end sought to be
reached has met the concurrence of thu coun
try, and that ma jority of the people, where
ever the matter has been publicly and fully
discussed, have signiied their approval OF
the determination Of Congress to be faithful
to it's pledges, and to relieve them of the ills
of an irredeemable paper currency.
The act in question not only makes ex.
press provision for resumption at fixed
date, but commits the government to the use
of all such means as may be needful to thai
end. n experience shall show that the
means provided by Congress need to be sup
plemented by further legislation for the cas-
end, il must be assumed that Congress vii
not suffer the great purpose 10 be impedeC
for want of such additional legislation. Tn,
the esue OF United States bonds for the piu
pose of procuring the supply Of gold necessar.
to execute such of it's provisions as go into i'm.
mediate operation and TO provide for the re
dempsion in gold of United States notes out
standing on and after the lst OF Janusry, 1879
, In this respect the power conferred on tn
, Secretary is ample but it, for any cause,
, should be found impracticable to accumulat
in the Treasury asufhcient amount of gold b
3 carry out the provisions of the act, the Secre
, tary Is left without the choice of other mean
q to accomplish the end. It may, perhaps, b
{ doubted whether the process OF sccumulatin
q large amount of gold by given time coul
go on without meeting opposition from tn
D financial powers of the world. IL is safe {
: say that so large an amount of gold as woul
| No rauurad tim