Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1875-08-18

the holders of bonds to receive them
in payment. Tri aew scheme was
the poisoned ii. in the finan.
cial cauldron, an. most dcmoral-
izing proposition ever thrust into
American politics.
No word or declaration of mine can
be found in favor OF extending the
greenback issue beyond the 100000
OO0. In a speech in the Senate in 1874,
just before the passage of the bill
which the Presiden. vetoed, / said /:
"We must take the greenback as we
find 1t. It's character csnnot now be
changed, and the promise to pa7 1t in
coin IL an unanswerable reason why il
cannot be substituted for the national
bank notes. Another reason why 1t
caunot be substituted for the national
bank notes is that in the act Of June
10. il was declared that, NOR shall the
total amount of United States notes
issued, or to be issued, ever exceed
S4G0, 900, and such additional sum, not
exceeding s5O,000,O00, as may be tenn
porarily required for the redemption
Of temporary loan, This was in the
nature of contract with the purchas-
ers Of our bonds, that the amount of
S4OO. .O00. 900 cannot be exceeded with
ont breach OF isiti."
THE ACT OF 1869. :
This new doctrine created great ex-
element throughout the country, and
alarm among the national creditors,
and was justly regarded as fragrant
reputation, and l myself, at the first
opportunity, denounced it rs such.
This scheme was by its adyocatss
blended with the right asserted by
others. to use the original legal tender
notes authorized and issued before
the bonds were sold, and with which
they had been purchased in payment
Of the principal of the bonds, and led
Congress, in 1863, to pass q bill
known 40 an act to strengthen
the public credit, declaring that
the five-twenty bonds were payable
only in coin. The passage of that act
settled the question. II was brought
about by MIR. Pendleton's proposition,
but settled the question equally with
regard to the original legal-tender
notes. Since that time the bonds
have been bought and sold ON the
faith of the express declaration that
they were to be paid In coin; and the
attempt 10 pay them in anything else
now would be reputation and ma
tional dishonor. The question, there
fore, OF the mode Of paying the five-
twenty bonds must be considered ~
settled, II anything can be considered
settled where the Democratic party is
concerned. Ifdemocrats now complain
of the act of 1869, let them console
themselves with the reflection that 1t
was the work of Mr.. Pendleton and
his disciples, and was brought about
by the shock and alarm which his
proposition gave to the moral sense Of
the nation.
THE BILL VETOED BY THE PRESIDENT.
l come now to the question Of the
redemption of legal-tender notes and
the resumption Of specie payment
No one has ever denied that these notes
are promise to pay the amount In
coin, and constitute part OF the pub.
lie debt. In April, 1874, q bill passed
both houses Of Congress, which was
vetoed by the President, and in regard
to which wish to say word. This
bill declared the maximum amount of
greenbncka 10 be $Aoo, 900 600, OF white
all but $l8,000,O00 were then in circu-
lation. 1t did not require the govern
mcnt to put the remaining eighteen
millions into circulation, hut simply
declared the law to be what President
Grant and the Treasury Department,
since 1868, had assumed it TO be. that
under the acts of 1862 and 1868, the
xreenback circulation might be kept at
$4O0, 100000. about which, however,
there was much doubt and discussion,
and both the President and Secretary
Of the Treasury had asked Congress to
settle the doubt. The bill further au-
thorized the increase of the national
bank circulation, in States having less
than their proportion. to the amount of
fifty-four millions Itwas not expect
ed this circulation would be issued
rapidly by the establishment of new
banks, and this has since been justified
by experience. But the bill contained
another provision, requiring national
banks to keep their greenbacx reserves
In their own vaults, and not deposit
them in New York, where they were
loaned to stock jobbers and passed. in
to circulation, and undoubtedly gave
rise to bitter opposition to the BILL
The bill was framed with view to
the condition of the country, then suf-
fering from the panic, aud did not
claim to be a full settlement of finan-
cial questions, and lett the question of
return to specie payments to be provi.
ded for atterward.
THE FINANCIAL ACT OF LAST SESSION.
When Congress assembled last De-
cember there was general conviction
among its members that some financial
measure should be passed TO remove
the doubts and uncertainties prevailing
in the country, and that 1t was the
duty OF all to abate something of their
opinions, If common ground could
be arrived at. upon the most material
questions A great diversity OF views
prevailed among the members OF both
parties. A very few were in favor of
repeating the legal tender act and thus
forcing resumption at an early day
Some were in favor Of contracting the
volume of currency until that remain
ing in circulation was brought to par.
Others were in favor OF fixing q day
for resumption SO far in the future
that business could prepare for II, and
aud the transition be gradual and easy.
Others again were in favor of such .
measure rs would enable the currency
to be expanded il the business or con-
dition of the country required 1t, but
the action OF the President, and his
known opinions precluded the possi-
bility of any such measure. A bill
was prepared which received the votes
Of every Republican Senator, save one,
and OF all the Republican members Of
the House, except few from the Ess-
tern States.
THE BILL COMPROMISE.
The bill was in its nature "a compro.
mise and middle ground. 1t recogni.
zed tho greenbacks "a part of the
public debt, and the obligation of the
government to pay them in coin, and
fixed the LIST of January, 1879, for the
period, four years from the time of its
passage.
It was provided in the bill that when
the time arrived the Secretary of the
Treasury might employ the surplus
Q0ld in the Treasury for the reC1emn-