The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-08-08

terlal queStlOnS. great diversity OF views pre-
vailed among the members OF both parties.
very few were In favor VI repeating the Legal Ten
der act. and thus forcing resumption early
volume OF currency until that remaining In
circulation was brought 10 par. Others were
IN favor OF fixing q day for resumption so far
In the future that business could prepare for
II, and the transition be gradual and easy. Others
again were in favor OF such "A measure as would
enable the currency 10 be expanded II the busl-
ness or condition OF the country required II, but
the action OF the President and MS known opin-
ions precluded the possibility OF any sucn meas
ure. bill was prepared which received the
votes OF every republican senator, save one, and
OF all the republican members OF the House, ex-
cept a lew from the Eastern States
THE BILL A COMPROMISE
The bin was In It's nature compromise ana
MIDDLE ground. II recognized the greenbacks as
part OF the public debt and the Obligation 0! the
to Pay them s6 IN c0 ana o nreU sas
from the time OF It's passage.
II was provided in the bill that when the time
arrived the Secretary OF the Treasury might
employ the surplus geld in the Treasury for the
redemption OF greenoacks, and II that was net
bonds at par, the bonds not 30 bear greater rate
OF interest than Ave per cent. 1t was thought
with four years. notice the business OF the Coun-
try could be prepared, without shock or injury,
for resumption, and tAat, as the time approached,
say to withln two years, the value OF greenbacks
the time arrived, and that then there would not
oe iarge demand 10 exchange tne "a lor coin. rae
bill provided that the greenoacks should act be
retired SO as to leave less than $500, COX, 900
In circulation, and II contemplated that they
ana the main purpose was TO improve their quail
ity and bring them 80 par value and with them
the bank notes which were redeemaple in green
backs. When the panic took place believed
that the period OF resumption was necessarily
true remedy ana relief rom the panc was that
which had been successfully employed in England
for moro than hundred years when financial
paRies came--that is, moderate increase OF she
currency; and advised the President TO pour into
circulation the $4,000 600 reserve OF greenbacks
then In the Treasury. The increase In the cur
rency which sought by legislation was by the ex-
tension OF the national banking system. ana not
by further issue OF greenbacks.
airy, 1874, said
Il az not speaking Of increasing the green
backs beyond the $4oo,oo0,ooO including the
$44 900, 600 OF reserve, but am speaking or In
creasiug the national bank circulation sA, oO0 600
or $50 200, so as to make the States equal and
requiring 1t TO be redeemed in greenbacks. That
would not cheaper the greonbacks; 1t would not
affect the value OF our currency OF all The ma
tlonal bank notes would still have TO be redeemed
IN greenbacks, ana the number OF greenbacKs
increasing the national bank currency TO the
amount speak OF which is little enough, would
not cheaper the value OF greenbacks and would
not increase the premum on gold, would not In
terfere with the gradual return to specie payment
that hope for"
That the period has gone by when any increase
OF the currency would DO good in checking the
panic an tree TO say, and believe 1t must run It's
course until the times are relieved by economy,
industry and the operation Of general causes.
NEITHER CONTRACTION NoR EXPANSION.
The theory or the bill in another respect was
that there should be neither contraction nor ex-
pansion of the currency-that the volume should
then was. BANKING was made free@tnat Is. me
restriction as TO the amount OF 02pk notes thas
might be issued In the aggregate, or In any OF the
organize new banks in any OF the States or Terri
tories upon compliance with the terms and condi-
tons OF the law. To prevent the expan-
SION of the currency from this source it
was provided that fer every 100000 or
should retire $50, 600 in greenbacks which, added
TO the gresnoack reserve the new banks would
be required 10 keep In their vaults, would maIn-
tain the volume Of currency IN circulation about
the same.
had sometnng to DO with the preparation OF
this bill. voted for 1t in good lalth and intend TO
stand oy it until experience has demonstrated
that IL is impracttc aele or needs amendment. Its
main feature, fixing day for resumption and pro-
viding Tor IL, l nad proposed to The senate six
years before, and whether the time fixed is a
proper one or not, and should have preferred IL
o year or two later, it is the method by which
I believe specie payments can and VIII be
banking, the slow, gradual. but Certain re-
turn to specie payments and no contraction
or expansion OF the currency until that time.
DEMOCRATIC PLATFoRM.
The Columbus democratic platform demands i'm
mediate abolition OF the national banking system
new issue OF greenbacks. A changd so great and
vital would be attended by the moss disastrous
consequences. the extent OF wnicn no man can
now foresee. 1t would require the banks at ice
to withdraw from the people $3.50, GEO. 900 In loans
In the greatest distress and the almost total sus
pension of business. The greeback circulation
, would be suddenly Increased from $4,000, coo TO
130, 900, 000 and would inevitably greatly depre-
clate. the value OF greenbacks Row Is main tanned
by the ability OF the governments TO pay them, ana
by the prospect or such payment at no remote
time, and II the amount was so increased that the
government could not pay them, and the prospect
OF payment passed entirely away, they would as
once lose the principal part or their value. L.
when there are put 1915 000 900 In circulation aud
we are within three years and q hall OF the time
fixed for redemption, they worth but eighty
eight cents on the dollar, what would be their
value II the amount was increased 10 $500, 100000
w M han mr.
tence that they would ever be redeemed! Let
any man of common sense answer. But IL is said
that the legal tender quality, the fact that the
debtor can compel the creditor to take them Ia
payment OF debts, Will preserve their value even
II they are never to be redeemed or paid. The
simple answer TO this is that when the volume OF
greenbacks Is largely increased, and all prospect
or pretence OF payment Is abandoned. people viii
refuse 10 sell their property or labor upon q
credit, knowing that they can be compelled to re-
ceve in payment deprecated paper never 70 be
redeemed
AN UNAVAILABLE SECURITY.
But we are told that any amount OF this paper
will noat, because the faith resources and credit
way to convert the resources credit of the gov
eminent TO the payment OF the notes, what does
the Union were mortSaged for the payment or
these notes, nut there Is no way 10 ioreclose, to
collect, 10 convert what does the mortgage
amOunL toS Stripped Of all DISCUSSES and pre-
tences the substitution OF greenbacks for national
bank notes Will be understood by the country as a
declaration that these notes Will never De
deemed.
THE ENEMY OF GnEENBACKs.
But here unmask this whole fraud and impos-
ture. The advocates OF more greenbacks IN the
place OF national bank notes are the enemies or
the greenbacks as they have ever been. They
are utterly opposed 70 q national currency in
every form. When the greenback currency was
irst proposed In 1862, and was Indispensable 20
the suppression OF the rebellion and the preserva-
ton oil the Union, the democratic leaders every
where denounced &c as unconstitutional did
everything in their power TO make 1t worthless
and to bring It into dlshonor. This warfare
against the consututlonality OF greenbacKs has
never been relinquished TO this hour. When
chief Justice Chase, with the majority OF the Su-
preme Court, decided that the issue or
groenbacks during the war, under mill
tary necessity 10 preserve the LIE OF the
nation was Unconstitutional, the decision was
heraded everywhere by tae democratic party as
the grandest triumph OF constitutional principles
known IN our history. ana when, aterward, dnr-
ing the administration of General Grant, the mem.
bership OF that Court having somewhat changed,
the Court decided, by majority Of one, that the
issue OF Rreenbacks during the war, under pres
sure OF national military necessity, was Constttu-
tiOlal. the democratic DartV