The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1875-12-16

Of Congress is. however, called to the fact that, by
the terms Of the authorizing act, the bonds to be
redeemable at any time after the expiration
Of fifteen years from the date of their issue.
most sought for by investors, and considered in ali
the most valuable, are those having a long
fact that hut little inducement is offered in the
amount allowed as commissions for placing the
other governments, it is thought important to give
these bonds all the elements of popularity that may
be possible; and the Secretarv, therefore; recon-,
July II, 1871, which shall extend the time of redemp-
tion of such bonds to thirty years from the date of
their issue.
~suMPr OF SPECIE PAYMENT.
The depression o fbusiness and general contraction
of values which followed the financial panic of lsT3
have continued to n greater or less degree in all
parts of the country. Singular financial commissions
have occurred in other countries, and their effects
are now being felt to a degree as great perhaps, MS in
this country. These disastrous disturbances have
been brought about in our own country by ayer-trad.
ing, Over-credit and excessive enterprise of a specu-
of promises to pay, existing In the form of currency
not based, upon, or convertible into the only actual
silver. Other commercial countries which have sui.
Tered and are now suffering from financial depres-
in some Of them the temptation to carry prosperous
times to excess has, as has often happened be-
fore, led to ovcr-pToducti0n and that superfiuity Of
sooner or. later, be followed by a collapse and
a corresponding period Of depression. Although
kntLG Il BLdblIgl III luulCdllCu5 vi Increased AcIlN-
States, it must be admitted that confidence has not
yet been restored to the extent necessary to bring
about a general revival, or to put the trade and IN
dustries OF the country upon a basis of activity and
pect that this will be done until there shall be a
nearer approach to RESUMPTION of specie paymsnt;
currency. The constant disturbance of exchange
and fluctuations of values, the uncertainties of bust
coTSor raf mani a0 0d e cnmmnn 0et%een hindiTidnaIs'
ence proves to be the inevitable result of the use OF
a medium OF exchange possessing nointrinsic value,
representing no considerable amount of labor in its
production, and not convertible into that which is
recognized as money throughout the commercial
attention OF every thoughtful representative of the
people. However rapidly may be our increase in
population, wealth and material strength, we can
not take the rank as a commercial or business peo-
pie to which we are entitled by superior natural ad-
yantagGs, aud the pro luctive energies of our popu.
lation, or attract to us the surplus capital Of the
world, so long as we have iuctuating standards OF
as makes the assembling Of Congress and our fire.
qnent elections oScasi1ns Of anxiety and apprehen-
but with business men at home.
Great Britain has kept the value of her pound
sterling substantially nnyarying for two hundred
become the ba.is of the transactions, not only OF
British commerce and trade, but of all the world,
In all civilized countries government negotiations
with foreign money lenders are made upon thiG
basis; and; as a general rule, the only foreign bills
current all over the world are those which are ex.
which city thus becomes tie great center where
and hence the commerc of the world revoive.
around II, and pays tribute to the commercial stan,
having no fixed relation to the money Of the world
but always much below its par value, we can never
attain that commercial Independence to which euI
great resources and active population entitle us.
Every branch Of industry and all classes Of people
are alike interested in the restoration of a sound
producer no less than the merchant. bondholder
and banker. The present unequal and fuctuatinG
currency Expresses and injuries laborers and pro-
ducers, who constitute a great majority of oul
people. far more than i affects injuriousl,
and our paper currency is = margin upon which
experienced money-lenders do business, and it ii
this that gives the opportunity for artificial comb,
nations whereby values are increased or reduced Al
pleasure; The purchasing power of the currency il
large operators united for that purpose, and pro.
ducers and laborers are often made to suffer, with
out effective power of resistance. Restoration of q
sound and unvarying currency must bring better
relative wages with more constant employment
duces, will be measured by a more certain standard
and with the return of confidence, there must com,
activity, PRO prosperity, larger markets and greater dc
do not tend to lower wages or make employment
less certain.
The claim that the large issue of inconvertibl
paper currency has been beneficial to producers, is
perhaps, sufficiently disproved by reference to tn
as wheat, corn and pork, before and since the issu
of such currency. The most trustworthy statistic
show that such articles were sold in New York dur
ing the five years from. $50 to 1874, inclusive, TO
about the same price that they brought in the fiy
q OM lcCO y lcOO, uCluslNty
On the other hand, it is equally certain that tn
farmer has paid increased prices, during the periot
from 1870 to 1874, for articles imported for cOnsump
tion, upon all of which the difference between goi
and currency must be paid by the consumer, VIII
pays IN the latter. Thus the producer of domestic
ing his products for such articles as coffee, tea
sugar, and other imported goods, which enter int,
daily In this connection it should b
borne in mind that q greater volume of currency j
required for the transaction of business when i
consists of inconyertible paper, which does not cir
culate abroad, than when the currency in genera
nse is gold, which flows through every artery o
commerce. The statistics of our foreign trade illus
trate this proposition. For every imported articl
the consumer must pay to the importer, besides til
costin gold, increased by his percentage of profit, a
much more as the difference between gold and til
currency with which pay ment is made This differ
enee, commonly called the premium on gold; in
would otherwise be required to complete all sue
transactions.
considerations and proper regard for the interest
the people, but by ex press and repeated promises, I
provide for the redemption in coin of all its issues
legal-tender notes. The original legal-tender az
was regarded and treated at the time of its adoptio
as q temporary measure, made necessary and justif
able only by the exigency of war, which taxed a
the RESOURCES and energies of the Nation. The fit
titlel IAN act to authorize the issue of Unite
States notes, ard for the redemption or fundin
t united States aat ,S "- janS1ns 'h tbs npa .iF6if GsS5 Sf q q
presses the views IF the Congress by which it WI
passed. 1t AUTHORIZED the issue of $50: 600, 600 leea
tender notes. and made provision for funding the
in bonds, issued on the credit of the Governmen
bearing interest in gold; and payable alta future da!
This was the best the Government could do in q
midst of its struggle for existence and rightil
supremacy. The state of the public credit did NJ
admit the possibility of the Immediate procuremel
absolutely. A well settled principle of politics
out providing for its redempti pGpe and in o6edient
thereto, Congress made the only practicable PR
vision for the redemption OF the notes which
the quality Of legal. tender. The act of July IL, IS6
which authorized a further issue of one hundred nj
l hfaV IlIinn d0llnra rnnfofnaA n 1fEa nrnrfafnn nv
further provided that any notes issued thereunde
might be paid in coin, instead of being converts
Treasury. The notes thus authorized were issue
and accepted by the people upon the assurance thu
bonds Of the United States, and this Considerable
undoubtedly constituted an important element
circulation and free acceptance in ali business trai
s~actions. In the opinion of wise and patriotic me-
who, as representatives Of the people. were charge
with maintaining the indissOlubility and.supremat
of our National Union, it was necessary to resort
this extraordinary measure for the purpose Ofcarr
substance and effect a National war loan, bast
upon the credit of the government, and coupled wit
a pledge for redemption, but the period ofpaymel
was to be thereafter determined when the public c:
igency would permit 1t was not in the minds
those who devised and INN the schem
that the government was about to enter upon Il
issue of an irredeemable pape rcurTency, which shou
permanently take the place Of the worlds measure
yocate of the measure that the Constitution hi
given to Congress power to issue 4 permanent pap
with, the qualities which, in the estimation of poll
ical economists, could exist only in the preciO
metals. In tile light of the experience of the ci
iliZed world, such n purpose would have been I
garded as little less than financial madness, and
HyOwal by the authors of the legal-tender acts Won
surely have caused the defeat of the plan for exer
ing the borrowing power of the government
means of such issues.
But the purpose and meaning of the acts in que
ton are not left open for forensic discussion, havil
been authoritatively settled by the unanimous OPT
ion of the highest Judicial tribunal known TO o
| CONSTITUTIONS. As soon after the termination of [
war as lS6S it was argued before the Supreme Cou
that the legal tender notes of the United States we
Issued as money, a substitute for metallic currcnC
and that having been made legal tender in PAYNE
of all debts, including with certain eXceptiOns( I
Governments own, of course, when presented I
payment, if similar notes, being legal-tendcr, we
offered in exchange for them, the debt would be di
charged by q delivery of new notes of the same kin
and so on Gd irJfRitum. To this argument the Con
replied:
upon them by the act of Congress, of which we ne
say nothing, their circulation as currency depen
upon the extent to which they are received in pa
ment, on the quantity in circulation, and on I
credit given to the promises they bear. In other I
spects they resemble the bank notes formerly issu
as currency.
But, on the other hand, it il equally clear til
these notes are obligations of the United State
Their name imports obligation. Every one of the
expresses upon its face an engagement of the nati
to pay the bearer II certain sum. The dollar note
an engagement to pay u dollar, and the dollar i
tain quantity in weight and tineness of gold or silvC
authenticated as such by the stamp of the Cover
ment.n
This authoritative declaration of the Suprer
Court defines clearly and precisely the meaning a
intent of Congress in the acts which authorized I
| isEua and Ehnu1n no accounted nS conclusive Df 4