New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-08-15

claimed BY the Secretary of the Treasur
and his successors, and subsequently d.
clared by the votes OF both houses of Cor
eress. that the $4,000 900 thus retire
thus constituted reserve in the treasury
and might be reis whenever the e.
igencies Of the government made
necessary. And in pursuance Of this clair
of authority the Secretary OF the Treasury
in 1873, after the beginning of tho panic
put into circulation $26, 100000 of add
| tional greenbxcks. leaving uni ssuad onl
slS.0OO,OOO olt Of che $500, 900 900. Tn
| most of the greenbacks had been issue
and all were authorized, when what ar
known as the tfve-twenfy bonds were frs
put upon the market, and it was with thee
notes that the bonds were purchased froI
| the government at par. 1t was the Opinio
of many distinguished lawyers, in Congress
and out Of il, that as these notes by tn
! terms OF the law were made q legal tende
10 payment OF all public debts, except in
| terest on bonds and duties on imports, tn
! government had RICH: to use them in pay
| ment OF the principal OF the tive-twent
| bonds. In favor of this opinion. the Fioanc
Committee OF the Senate unanimously re
| ported in l866-Ssnator Sherman bein
chairman, high authority, he having pal
ticipated in making all the laws upon tn
subject To this conc fusion subscribed
fully, as . question of law, but with tn
expressed opinion that they should not b,
used for that purpose until they had beol
brought to par.
THE POISONED INGREDIENT IN THE CAUl
ORION.
IN 1876, new financial school sprano int,
existence, Of which Mr. Pendieton. of Ohio
was the distinguished head, asserting tn,
right snd the duty of the govesnment-the,
long after the tive-twenty bonds had bee,
sold, and in violation OF the pledge given
in the act of iS64-to maks further issu.
of greenbacks to an indefinite amount be
yond tho $500. 0O0, 900, and compel the hol,.
ere of bonds to receive them in pAymen,
This new scheme was the poisoned ingre
dent in the financial cauldron, and the
most demoralizing proposition ever thrast
into American politics.
No word or declaration of mine can be
found in favor Of extending the greenback
issue beyond the $500, 900. In q speech
in the Senate in 1854, just before the passage
of the bill which the President vetoed.
said: I'VE must take the greenback as we
lind it, 1ts character can not now be
changed, and the promise to pay it in coin
is an unanswerable reason why it can not
be substituted for the national bank notes.
Another reason why it can not be sub.
stituted for the national bank notes is that
in the act Of June 30 it was declared that.
Nor shall the total amount of United States
notes issued or to Ne issued ever exceed
40O,O0O,0OO, and such additional sum. not
exceeding $50, 900 900, as may be temporarily
required tor the redemption of a temporary
loan This vas in the nature Of contract
with the purchs sers OF our bonds, that the
amount OF $500 DOC. 900 can not be exceeded
without breach of faith"
THE ACT OF 1869.
ment throughout the country and alarm
among the national creditors, and was lust.
~ regarded az fragrant reputation, and
myself, at the first opportunity, denounced
it as such. This scheme was by it's advo-
Gates blended with the right asserted by
others, to use the original legal tender notes
authorized and issued before the bonds
we're 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 streng then the
public credit, declaring that the tive-twenty
bonds were payable only in coin. The pass
age of that act settled the question. It was
brought about by Mr.. Pendleton's PROPOSE.
ton. but settled 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 decla.
ration that they were to be paid in coin;
and the attempt to pay them in anything
else now would be reputation aud National
ii-honor. The question, therefore. OF the
mode of paying the fivt.swenty bonds must
be considered a settled, if anything can be
considered settled where the Democratic
party 10 concerned. II Democrats now
complain of the act of 1869, let them console
themselves with the reflection that it was
he work of Mr.. Pend!eton and his disciples.
md was brought about by the shock and
tlarm which his proposition gave to the
moral sense OF TIA nation.
THE BILL VETOED BY THE PRESIDENT.
come now to the question of the re-
Iemption Of legal tender notes, and the re-
Of specie payment. No one has
'yer denied that these notes are a promise
o pay the amount IN coin, and constitute a
,art Of the public debt. In April, 1874, q
Jill passed both houses Of Congress, which
vas vetoed by the President, and IN regard
0 which wish to say word. This bill
declared the maximum amount of green
Jacks to be $500, 1000, 900, Of which all but
10000 900 were then in circulation. It did !
ot require the government to put the re-. !
laining $l8.0OO,0D0 into circulation, but !
imply declared the law to be what Presi- |
enr CT ant and the Treasury Department, |
ince 1868, had assumed it to be, that under !
be acts Of 1862 and 1868 the greenback cir |
ulatiOn might be kept 1T $400, DOC, 900, about
'hich, however, there was much doubt and |
iscussion, and both the President and Sec.
9tary of the Treasury had asked Congress
, settle the doubt. The bill further author
led the increase of the national bank cir
llation, in States having less than their
rOpOrtiOn, to the amount Of $54, 0O0, 900. 1t
as not expected this circulation would
o issued rapidly by the establishment of
ew banks, and this has since been justified |
2 experience. But the bill contained an |
her provision, recurring national banks to
eep their greenback reserves in their own
aults and not deposit them in New York,
here they were loaned to stock .jobbers
Id passed into circulation, and this, it was
would contract the circulation,
Id undoubtedly gave rise to bitter opposi.
On to the bill. The bill was framed with
ew to the condition of the country. then
ttering from the pal mic, and did not claim
be a tull settlement Ut financial questions,
I'd left the question OF return to specie
lymeuts to be provided for afterward.
THE FINANCIAL ACT OF LAST SESSION.
When Congress assembled last December
ere was a general conviction among its |
embers that some financial measure |
Culd be passed 10 remove the doubts and
prevailing in the country, and
at it was the duty of all to abate some |
ing Of their opinions, il common ground
uld be arrived at, upon the most material
estions. A great diversity of views pre-
lied among the members of both parties.
very few were in favor Of repeating the
"a! tender act, and thus forcing resump-
N at an early day. Some were in favor
contracting the volume of currency until ,
at remaining in circulation was brought '
par. Others were in favor of fixing day !.
resumption 80 far in the future that
siness could prepare for it, and the trans;
n be gradual and easy. Others again ,,
re in favor of such measure as would ! /
able the currency to be expanded if the Z