The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-08-11
cue ue-,vuxr,srsne .hala dollarssin rnper for

tZeu larKpI C|spTopuIloN, let thcoVs1".." z
s. ere speefe.pay ing barksA Then as nos, 'oe'
question could have been asked, hoWeould o.
bank redeem two and bait dollars with one
of coin! This could only be done, for The
reason already stated, which Is, that the value
ofshis piper was credit, and which credit vas
maintained BY the fact that the note was con.
,vertiblc at any time into cofn-srd as paper,
used as money, is more convenient than coin'
az long az The credit on which it rested was
maintained. no one wanted to convert II ana
nobody wanted coin; but take away the
credit, and Immediately all the holders OF IL
would rush to the bark for coin. Credit H..
therefore, indispensable to maintain paper
circulation. How is this credit to be created
on firm and sound basis, and to be main.
taipcdf For, without 1t, the whole theory
Of paper as circulating medium falls TO the
ground, and specie resum ption in this coun :
try il an utter impossibility. This credit,
in nv opiniop, can be created and maintain
cd by the Government Of the United STATES
receiving it's own legal.tcnders In payment
of all debts whatsoever due to it by any
of its citizens; and if this were done,
I am firmly of the opinion that we
have enough gold to resume specie
na,ments. and without it we never can.
We have all the coin we are justly entitled
TO. by the laws of trade, and cannot have
any more. And if we were to force coin
10 this couptry BY any unnatural process
for example. the sale Of bonds in Europe for
coin. to be brought here-it would 90 r'g0t
back. II will not remain here unless the
laws Of trade keep i: here. And II the pro-
duction annually from California and other
cold fields were double what it is now, we
would not have any more. Coin, IKE wa
ter will seek and always find its level. The
problem to be solved, then, is bow to appre'
rjatc the paper money now in circulation so
as 10 make it equal to gold, and yet at the
same time not bring about contraction. !
believe this can be done. You will, L nope,
rardon me if refer to myself. 90 tnIs, i
assure you. with dif1idencp. On the 22d OF
December last l introduced in the senate
the following resolution: .....
ResOlced, That on and after the lst DAY OF
,July, 1915. duties on imports may be paid In
leyatender notes, or coin, at the option OF
the importer.
Sustained my resolution as we'll as could
with q speech. l gave six months noticc OF
the day when this should go into effect. so
~ TO avoid any shock to business Which IS
ant 10 be created by a sudden ana great
| change in the mode of doing 1t. My resolu-
tion was not adopted. Judge thurman, OF
ohio. was willing to support it, II had oeeh
wiIlin. to say That a portion only-say one
INN or one-fourth Il do not remember
whch). should be paid in notes. l declined
n modify it--wanied all or none--for unless
.II was received | could not see that any
GREAT rood could be effected. | see, in a
spc,cl lately made By Mr.. Pcndleton in Ohio,
th,t he iuyors the views of Judge Thurman.
! repeat, that it is only by receiving the
whole in this kind Of paper that the Object
1 have in view will be accomplished. l be-
lieve this 10 be the road, and the only road,
that leads to specie resumption; and
until this is done resumption will con-
ljpuc TO be an lmpossibilty. [ further
more believe that If this was adopted 1t
would not only lead TO resumption, but to
PROSPERITY throughout the country. and not
70 paper intIatioD; but, in fact, TO gold in
fluli0u. Legal-teuders never can be at par
with gold, A. long as the party issuing them.
which is the Government, will continue to
liscrcdit them, and this it does by refusing
10 receive them in payment Of duties. On the
back of each note is printed the pledge that
the Government will receive it in payment Of
all debts due 10 it excepting duties on i'm
ports and interest on the public debt. Now,
il so happens there is nothing due the Gov,
ernment by its citizens excepting duties on
imports and Internal revenue. The amount
Of legal tenders now outstanding is less than
S3SO. O0O, 900. The amount OF duties apnu-
alIv c ELECTED is from Sl70.0OO0O0 to $780,,
900. 900, depending on the amount OF impor'
tations. The amount of gold in this
country, according to the Secretary OF
The Treasury, is $160,000,000. 1t,
therefore, takes all the gold we have to
Day the duties. Iu addition to this, gold is
wanted to pay interest on the bonds, ard,
besides this, the Secretary. Of the Treasury
keeps locked up from SOC, 900, 600 TO SS0,OOO.'
600 all the time. So that 1t is not surprising
that gold is at Il pretty high plemium-ln
deed, it is only astonishing it is not higher.
BY taking legal-tendrrs in payment Of duties
i, would do away with the demand for gold
TO the extent Of this amount required to
pay duties. which | have said is Sl10,000..
900 to $50 100000 annually, and would
create Il demand for cga-tendcrs to CORE
spending amount. There is ut this time in
this couulrv no demand for gold, excepting
10 pay duties and Government interest. BY
dong away with the demand to pay duties
individuals would no longer be compelled to
procure it. Yet the gold being here would
not remain without being used, for this Is
against the very law of its existence. It's
value consists in using it. individuals not
being compelled to buy it, and as il will not
remain idle for any length OF time, 1T would
rs necessity find it, way into circulation as
Il medium Of exchange, In which character II
has not been used for long time. Going
iuto circulation as a medium Of exchange
would Increase the circulating medium to
the extent of the quantity IN the country,
which is Sl60 00e,OuO. Thus we would have
an intuition. and this in gold. While gold
has been bought and sold as an article of
merchandise for some years, it continued to
he nevertheless the measure Of value of pa.
per money, and consequently of everything
10 the country. This attribute of coin has
been given to it by the commercial world.
and for many good reasons. and no one
nation can possibly deprive it OF
this character. Gold not being needed
to pay duties would naturally find is way
into the vaults Of all the banks, both East
and West, and be retained there as the re.
serve which all well-managed banks must
keep, and emancipate an equal amount of
| paper now retained for that purpose. The
national banks by laT are required to redeem
their circulation with lrgaltenders. There
are, say, 1880, 100000 Of national bank notes
| outstanding, being about the same amount
as of legal-tenders. The source Of redemp.
ton for those national bank notes would
then be the $3.50, 100000 plus
the gold in the country, say $4,000, 900,
and being a total of S540,000,0O0. The ma.
tional banks could then resume with great
ease. Resumption would then have taken
place and the medium of exchange increased
by the amount Of gold in the country.
Although this communication has already
eNteudedAo greater length than antici-