The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1875-09-16

carry the act into full effect, ana to use
the proceeds thereof for the purpose
aforesaid. And all provisions of law in
consistent. the provisions of this act
are hereby repealed" AT the passage of
this act there was outstanding, as ! sup'
pose, SS82000,000 of legal tender notes,
as provided in the act of June, 1874.
Should the $82, 700 000 be retired by the
substitution of bank notes under the
first section, then there will remain
$500 100000 to be redeemed with gold,
1t is not probable that the $82,000,0 900
will be entirely displaced by bank notes,
If not, an excess of the $500, 900 will
remain for redemption in gold. That
excess will probably equal the surplus
revenue in gold that the Secretary will
find available for the purpose of the act.
suppose 1t may therefore be assumed
that the Secre, AIRY VIII be required to
sell five per cent bonds to meet $500,
100000 of Treasury notes. The immedi-
ate and direct effect OF the measure will
be to increase our gold-bearing interest
S300,00O,000, and an annual interest OF
Sl5,000,000 in gold. If we add the S40,-
100000 of bonds that must be sold to
buy silver to displace fractional currency
We have, in this measure, an increase OF
the interest bearing debt of S40,000OOO,
and of the annual interest of $4,000 900
in gold. The bonds viii be sold in Eu-
rope. This administration conducts all
such transactions through European
syndicate, or combination Of banks.
Thus the debt will be foreign one and
will add Sl7000000 to the enormous
annual expectation of gold to meet the
interest. What consideration of obliga-
tion or Of good policy can support this
measure? In the midst of financial
crisis so serious as to disturb the founda-
ton Of our prosperity, we are to add tuis
large sum to our foreign debt. Why is
it done? The $3S20O00O0 of Treasury
notes are held exclusively by our own
people, 1t is a domestic debt The
holders are not asking its redemption.
For the present, they want it to remain
circulating among them as lawful mon
ey." The Treasury notes were issued as
legal tenders at a time when they were
supposed to be essential to the mainten-
ance of the public credit. twas deemed
expedient to issue q portion of the Gov
enments credit in the form Of currency;
and therefore, the Treasury notes bear a
double character, They are at once the
evidence Of q Government debt, and are
medium Of commerce, a debt to be
paid, and legal tenders to be used. They
were 80 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 pleas
ure and conscience of the Government,
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 iniure business
and labor until as good or better cur
rency can take their place? Every obi
cation of the Government must be met
and discharged Whoever questions the
fidelity Of the Democracy in that respect
sreaks without regard TO truth, fully
recognize the obligation for the redemp-
lion Of the Treasury notes, but can not
feel that il must be discharged at a time
when it may seriously add to our embar-
easements, and when the people, who
hold them do not desire it. In our
present condition any addition to our
foreign gold obligations is a calamity.
viii you vote to convert this domestic,
bearing debt into foreign,
interest bearing gold debt? In this
statement ! have made no estimate tor
the sale of bonds and increase of inter-
est debt, which may be necessary to en-
able the Secretary to redeem the $82,-
100000 legal tenders, which are to be
displaced as bank bills issue.
tits now my duty to call your alten-
ton to other probable consequences Of
this measure, more frightful than those
which ] have exposed AS the time for
the redemption Of the Treasury notes in
gold approaches, and the Secretary pre-
pares for their redemption by the sale of
bonds and the accumulation Of gold in
the Treasury, theywill rapidly advance
in value. During the period Of two
years the redemption commences, per-
sons who are able to hold money out of
actiye,use will accumulate and retire the
Treasury notes for the profit of their in
creasing value. The banks are permit
tod by law to redeem their bills in Treas
ury 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 adj
vance in, value they will be presented for
The banksw will anticipate that
probable result, and will prepare for it
by boarding the Treasury notes for the
Of their paper. The proba-
BILE consequence will be that under these
influences the Treasury notes will, for
period Of time, be with
drawn from circulation, and our curren.
oy will be contracted to nearly one-halfI
its quantity. AS rapidly as the Treasury
notes are used in the redemption and
Of the bank bills they will be
presented at tie Treasury for redemp.
ion in gold, and will disappear forever.
know it is said thai as soon as it is es.
ablished that they are iuedeemabe in
gold they will not be presented, as they |
will then be as good as gold. To some |
% NNAlL NbbL NvNlN Bt lluC III IL lllllt VI |
composure and confidence,
)ut that will not be the condition of our
country while this law is being executed.
Do you not present your negotiable pa
)er at maturity merely because you have
confidence in the ability and willingness
# your debtors? How long do you think
he gold paid out in the redemption of
Treasury notes will remain in the count.
y? VIII it pass along the veins and
tteries of business and give life and
nergy2 In a time of general conf
Ience it might be SO, but not while this
aw is being executed, Public conf
ence and financial stability can not be
made to rest upon borrowed gold. This
will increase our gold obligation
broad, and because of contraction, will
educe production at home. This flow
f gold abroad will continre, and the
orrowed gold will soon be gone. In
his presentation Of the subject / have
OF considered the possibility of any ex-
foreign demand. Any great
nauclal crisis abroad, or disturbance of
ne peace of Europe, would cause our
onds to be thrown upon our market in