Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1875-11-26
specie payments and the Debtor CT SIS.

AlNFNAtAN = ~ A-~N-- 49,
Yesterday we referred TO the fact that Of
The persons who oppose a return TO specie
payments a largo body freely admit that
a currency at mar with specie value would
le higbly beneficial 10 the country, but
they are personally In debt, under con.
tracts made IN depreciuted currency, and
specic payments would compel them to
pay fifteen cents more on the dollar in
satisfaction Of their debts than they will
have 10 pay II the currency remain at Its
present value. These persons are honest;
they owe debts which are 10 mature with
In one or more years, and they shrink
from any measure which seems TO have
the effect 10 add fifteen cents on the dollar
of the amount they will have to pay. II
is easy TO understand how personal con.
siderations influence mems votes and &C.
tions, and how men, however convinced
of the general evil of a deprecated cur
rency, object 10 being compelled 10 pay
10 per cent. for which they have received
no consideration. Outside of the bank
r,ipt and desperate spectators who do moi
want money worth even eighty five cents,
but who want II run down TO fifty or forty
cents on the dollar-and the lower tho
better for thcm-this objection TO paying
debts for which there is no consideration
is the only ono which influences thousands
of honest and "lligent persons In oppos-
ing a rcsumpt,on of specie payments.
Can this objection be removed by any
measure which will facilitate specie re-
sumption without disturbing existing re-
lations between debtors and creditors, and
which will not contract the volume OF
lcgal-tenders for the payment of debts
We think such a measure not only prac-
ticablc but highly essential to any re-
sumption Of specie payments.
Let Congress this winter enact:
l. That the holder of greenbacks, upon
presentation of them 10 the Treasury De-
partmcnt, he entitled to receive in ex-
change therefor per cent. gold bonds, of
the denomination Of $50 or $780, or any
multiple Of 800.
2. That these bonds, having thirty years
10 run from the date of issue, be made legal
tenders in the payment of all debts and con
tracts made before, say, the 4th ofJuly, 1876.
g. That the legal tender for all contracts
made after that date shall bc the coin OF
the United States, except when payment
otherwise may be expressly stipulated.
Here, then, we have the problem OF
specie payments solved without any dis
turbance of the relations of debtor and
creditor. For all purposes of payment Of
debts the greenbacks in their new form Of
bonds will be available. The bonds them
selves will at present prices of money, be
worth about eighty to eighty.fve cents on
the dollar in coin. The Government 3
per cents. are worth par, and the 4 per
cents. would range from eighty to eighty
five cents They will continue to be
bought and sold as the currency now Is,
for the purpose of making payments Of
debt and will pass from hand to hand as
currency in all transactions over fifty dol
lars. For thirty years these bonds or the
unfunded currency will continue to serve
as a legal-tender for debts already con-
traeted, and that period will cover all ex-
listing liabilities of individuals, corpora
tions and municipal governments. No
man or municipality will be called upon
to pay debts in any other currency than
that in which they were contracted.
At the time fixed by law for the begin
ming of new contracts under the coin le-
gal-tender, there will not be the slightest
difficulty in finding all the gold necessary.
As we have repeatedly shown, the vol
ume of currency actually handled in the
payment of debts is comparatively very
small. 1t Is less than 8 per cent The
exchanges OF the country are made by the
transfer of credits through the agency of
the banks. The grecnback currency and
the lcgal-tender bonds will take the place,
in the general business of the country,
that the currency now occupies in the
business of California. Greenbacks can
be disposed of in Canada, England or
France; that is, they will he taken
in exchange for gold at their current
value. A considerable proportion of
the business of Canada is done in
American currency Canada will sell all
she has for greenh hIcks--taking them at
their market value. In California and on
ceived IN all business transactions for
what they are worth in coin. So when
gold and silver are made the legal tender
in all netn contracts the paper currency
will be used AS now, except that instead OF
being the measure of prices it will be
taken at its coin value. The currency
will lose none of its purchasing power and
will he relieved from most of its fluctua-
tions when il passes into the shape of
per cent. legal-tende gold bonds The
only change will he that it will be re-
ceived in the purchase of property and in
payment of labor at its market value,
which may be estimated at about 85 per
cent, with tendency to increase in few
years TO 80 per cent.
After the day named all new debts to
or from banks will be on the basis of
specie values; all new deposits will he re-
ceived at their value in gold, and will be
payable on demand in gold value; and,
except in the case of old debts, the banks
will practically resume specie payments
without shock or difficulty. The demand
for gold in the United States at present is
almost limited TO the sum needed for pay
ment of duties, which is again paid out in
the shape of interest on the public debt,
and for transmission abroad to pay for
our purchases and other foreign liabilities
TO the extent that our exports do not
cover. The uses for gold in this
country being increased, gold obey
ing the inevitable laws of trade,
will flow hither in sufficient guam
tity to meet all needful demands. We
published few DAYS ago the fact that
some of the New England cotton mills
have begun the exportailon of their man.
ufactures, A return TO specie standard
would make the export trade general; the
country would manufacture more, having
the foreign market as we'll as the domestic
IN which TO sell. Instead of exporting
gold TO pay our foreign balances we
would substitute Woolen cloths, and iron
and wooden goods The world will come
here to buy, if we will only adapt our
financial system TO that Of the commerce
of mankind We will have specie pay,
ments, leaving debtors and creditors ID
settle all existing contracts IN paper; blt
for the new century we will begin on dc
healthy and permanent basis Of spf9e
values, and contracts in homes. .,mdiey
having fixed value.-ChieagQl1lnId ~.