The New York herald., 1875-12-08


the quantity In circulation, and on the credit given to
the promises they bear In other respects they
resemble the bank notes formerly issued currency
"But, on the other hand, II is equally clear that
these notes are obligations OF the United states.
Their name imports obligation. Every one OF them
expresses upon ITS lace an engagement Of the nation 10
pay the bearer certain sum. The dollar note u an
engagement TO pay COLLAR, and the dollar intended Is
the coin dollar OF the United Statesa quantity
IN weight and nneness Of gold silver, authenticated
as such by the stamp OF the government"
This authoritative declaration of the Supreme Court
defines clearly and precisely the meaning and intent Of
Congress IN the acts which authorized the issue, and
should be accepted AS conclusive OF the ALLEGATION and
duty OF the government TO provide for the payment in
specie OF all such issues.
Nor, is this ALL Subsequent to this decision. and for
the purpose of putting quetus upon the mschievous
discussion OF the subject Congress, on the 18th day OF
March, 1869, declared by public that ''thc United
States solemniy pledges It's ath TO mako provision at
the earliest practicable period tor the redemption of the
United States notes in coin. y
These provisions Of the various acts of Congress,
which passed with the approval OF the Executive
the clear adjudication of the Supreme Court, well
the planest principles of pot cal economy and proper
regard the public welfare commit the government
TO the redemption IN coin oil the notes issued under tho
circumstances before stated National faith and honor
could not be more distinctly or unequvocally pledged
to the performance OF a plain duty
In view OF these solemn and repeated pledges
idle toresort to the consideration of elementary prin
cples OF finance TO prove the evils of irrcdecmahlo
paper currency In the face of such pledges, disregard
OF which would bring national dshonor and serious II
not rreparablc injury to hepublc credit 1t can hardly
be necessary to discuss questions OF eXpediency TO
point out the ills which the experience OF the civilized
world shows must follow violation OF well known laws
ot political economy.
Ii is among the first and important functions or
government to give to its people sound and stable
rcncy having fixed relation TO the standard OF values
in general use among nations. The true matter with
which government has to do is not much question
of volume rs OF soundness and stability Of the currency
When 1t has established currency OF fixed and stable
value, having known relation to that of other powers
and furnishing uniform medium of exchange, the
volume may and should bo left TO be determined by the
of trade and business Natural causes aided by
individual effort aud enterprise viii regulate the vol
umc OF currency lar more wisely and with greater
safety business than of Congress imposing ar
hcla limits subject to Increase or dminuton ut every
session.
The existing provision OF law making United States
legal tender for all debts both public and private
with certain exceptions relating to transactions with
government is an artificial barrier TO the use Of gold
and silver tending not only to prevent the flow OF gold
toward this country but promoting the shipment
abroad OF our own production OF the precious metals
For this reason Congress should abolish tho legal ten
der quality Of the notes as to all contracts made and
liabilities arising after fixed day The
lst day Of January, 1879, being already fixed
of United States notes then outstanding shall begin, 1t
wo be proper and safe TO provide that such notes shall
be legal tender for made liabilities
Cured after the 1st day OF January 1877 Such
would rot too suddenly change the value OF the notes.
and would not affect njuriously either debtors or
creditors but would remove present obstruction to the
retention OF our gold and silver production and create
demand for the return Of gold now abroad thus pro-
noting final resumption by preparing the country for Ii
In turtherance othe purpose oIhe act OF the last Con-
gress provide for the resumption of specie payments
the Secretary recommends that authority be given Tor
funding legal tender notes into bonds bearing low rate
OF interest Such bonds should tor longer period
OF time than those now authorized for re-
funding the interest bearing debt, aud should TO
made available to national banks for deposit to
secure their circulation and other liabilities the gov
ernment and should bear rate Of interest so low as
not to TO too rapid absorption Of tho notes. 1t
probable that bond bearing interest at the rate
of four per cent would invite the funding OF uihcient
amount Of legal tender notes to lessen materially the
sum of gold which, in the absence of such provision
be accumulated the Treasury by the lst Of Jan
uary 1872 TO out the imperative requirements of
the act Of January a. 1875 II II be appreEended that
authority TO the Secretary to fund an unlimited
amount OF notes might Lead to too sudden contraction
OF the currency Congress could limit the amount 10 be
funded in any given period OF time The process being
in sense compulsory to the holders OF United
States notes, and ratio of interest tho bonds
being made low, IL is not probable that currency
which could find profitable employment would
be presented for redemption IN such bonds
Only the of notes above tho
needs Of business would seek such conversion Author
y to the Secretary of the Treasury to redeem and can
eel two millions OF legal tender notes per month by this
process would greatly facilitate redemption at the time
now fixed by law, and, BESIDES would have the advan-
tage of publicity as to the exact amount to be with
drawn in any given month Bonds issued for this pur
pose should be OF the denomination OF $50 and 800,
aud any multiple thereof in order to meet the conven-
once OF all classes of holders of United States notes.
The faith of the government stands pledged to
resumption and after January l, 1879, and to the
final redemption and removal from the currency OF tho
country of the legal tender notes fast they shall
be presented for redemption, according to tho pro-
visions Of the act Of January H. 1879 To resume
legislation would require tho accumulation of large
amount of gold in the Treasury in order to tho
possibility OF failure of tho plan Such an amount of
gold be procured with difficulty, and not without
moro or less embarrassing elect upon the trade and
commerce of our own and other countries The pres
ent abundance and cheapness OF both currency and
capital presents favorable opportunity for the with
drawal and redemption of considerable part OF the
outstanding legal tender notes thereby making easy
and eifecIual the redemption now pledged Such
withdrawal Of legal tender notes thus dispensing with
tho necessity for aceumuatng gold in tho Treasury in
Hoo and
prcciate those remaining outstanding and make II
easier protect and keep in circulation the silver coin
now authorized TO be Issued
he act last referred to express recognition OF
the duty and obligation OF the government TO
specie payment at the day therein named; and, how
widely different may be the views OF intelligent
persons upon the means adopted by Congress, IT is
gratifying know that the end sought to be reached
has met the concurrence OF the country, and that
majority OF the people, wherever the matter has been
publicly ana fully discussed, have signied thoir APP
prova of the determination of Congress TO be faithful
to its pledges and 70 relieve them OF the ills OF an ire
deemablc paper currency.
The in question not only makes express provision
for resumption at fixed date but commits the govern
ment TO the Of all such means as may be nccdfu to
that end. II experience shall show that the means
provided by Congress need to be supplemented by
further legislation for the easier and moro
certain accomplishment OF tho end 1t must be
assumed that Congress will not suffer the great
purpose TO be impedcd for want OF such additional
legislation. The act confers large powers the Sec
retary of the Treasury touching the issue of United
bonds for tho purpose of procuring the supply of
INTO immediate operation, and to provide for the
dempton in gold of United States notes outstanding
and after the LIST of January 1879. In this respect tho
power conferred on the Secretary is ample, but IT, for
any cause 1t should be found impraccablc to accumu
late in the Treasury sufficient amount OF gold TO carry
out the provisions OF the act the Secretary loft with
out the choice OF other means to accomplish the end.
1t may, PERHAPS, be doubted whether tho process
Of eccumulating a large amount OF gold by
given time could go without meeting oppo-
sition from the financial powers Of tho world.
IL is cafe to say that large amount Of gold as
q
ton OF the act cannot be suddenly acquired II be
done only by gradual processes and by taking ad
vantage OF favorable conditions OF the money market
from time to time
The loss OF interest on large sums boarded in the
Treasury for considerable period in advance OF Janu-
ary, 1879, is consideration not to be disrogardcd
although it should not be permitted to outweigh the
benefits TO result from full ana complete execution Of
the act
The Secretary regrets that the condition OF the
Treasury has been such as to render it necessary to
make sales Of gold coin from time TO time TO meet
rent expenditures payable in currency Such sales
have been madc in New York city, upon public
notice, in accordance with the plan previously
al and have Iaap