The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-12-06


cial measure, that II Is not 10 he presumed ~
have been contemplated 10y Congress, and so not
incumbent ON the secretary sun he Is expected
aud required to meet the demand Of redemption
by the accumulation uf coin adequate in
amount. at hls discretion. with no certain
for his data guidance In the exercise OF IL.
What is essential for him to know in order to
the perform 1nce of the duty is. what amount OF
notes will certainly be presented Tor redemption
on the frat OF January, 1879. AZ TINS v clearly
not attainable, he - left to dead win WI Il is
probable, determ'nabe upon the condition OF
auch general causes viii be likelv TO attend
that event II would not he difficult IN the pres-
ent state OF monetary affairs To make probable
estimate OF the amount required IT the redemp-
ton were to take y ace In Janu1rv next; and II
Ia probable that accumulation OF an amount OF
coin equal 60 moiety OF the sum total of these
notes would be an ample preparation; OUT
while II IL to be hoped that the credit OF
our bonds may not be less IN 1877 I, may not be
known that in other respects the situation VIII
favor such result. IL "a. however, deemed prob
ahle In any supposnhlc condi ion ~ monetary
an airs. that, II no iucOnsid rable reduction Of
the volume Of these notes should be made In
authorization OF the redemption OF 1919, the prep
aration required bv accumul tion OF com iof
the demands OF January. 1879, AVID Immediately
thereafter must he NJ least an equal Drooortion
OF the sum total of the notes outstanding. As
to the surplus revenues ~ ameasure Of fedemp-
ton, such Is the present ana prob able future OF
these revenues and the demands upon them,
that II Is not deemed at all probable that any
considerable sum not otherwi-e appropriated
could he DEVOTED tn this end. In this connec-
ton. however. II ~ proper To observe that now,
for the first time IA many years. owing to the
l. rye reduction Of currency payments. ihe s1les
Of gold to obtain the equivaent currency there
for. are no longer necessary. and thus a consid-
cradle accumulation of gold may he anticipated
from the surplus from the customs revenue.
LIMITING THE CURRENCY.
by the act Of Jan. H. 1873, the limitation upon
the issue Of national bank notes was repealed.
and the volume uf currency left to be deter
mined by the business demands OF the country.
The Secretary of the Treasury was reutiited Ia
retire. Of legai-tcnder notes, eighty per cent. of
the sum Of national bank notes then Issued in
excess of S3CO,0nO The amount Of additional
Iat
Sls,0S0.s5, and legal-tender notes to the amount
Of Sl4 :4G42% have been retired.
By the act Of June -. 1874, national banks
might withdraw their circulation In whole or in
part by depositing lawful money with the Treas
lrer, and Withdraw proportional amount Of
the bonds and II was made the duty Of tho
Secretary to retire legal-tender notes to the
tent Of eighty per cent. of the bank mites there
after Issued, Under this act, S5.sJi.tsO of legal
tender notes have been deposited in the Treasu-
~, and $50 l22,OtA Of bank notes, accordingly,
have been redeemed and destroyed.
Tue amount OF i-gal-teul,r notes outstanding
Nov. l. 1873, was $685. ,5i5.1lG. The amount OF
said notes on depost Tor tue purpose OF retiring
tioual bank notes In circulation on that day was
SEQ 1s) IGi less. and of leg / tender Sii 4G4.2Si
less than on Jan. Il, l6i5-a total decrease IN
circulation, under the operation VI the act, Of
$fAbn,148.
Fr in these facts. rs well as from the l,rge ao-
cumulatioDs Of money at the money centres and
the lack 81 demand for II. 1t IL apparent that
the volume OF currency - largely Ia excess Of
the real demands Of legitimate business, and
that a portion Of the legal tenders might be
gradually withdrawn without moarTas ment 10
the business of the country.
In the interest OF permanent exemption, and
"a means of Maintaining the sd ne, II Is deemed
important also. " not quite indi speusabie, that
provision should he made requiring the national
banks to gradually provide cola In SUCH ratio 10
the secretary of the Treasury m " direct. aud TO
hold the same as IA part Of their lega money re-
serve, 80 that said reserve, ON tine first Il y Of
January, 1879 shall be equal IN amount to the
eutire reserve required by law. To the same
end, as the frictiun currency Is withdrawn. it
IL deemed expedient that not oniy the vacuum
caueei thereby In the mater OF change should
be made good, but that, a. a dltpnal change,
the volume OF silver snOull b" increased to the
amount Of at least SoJ.OJDOcJ, aud silver made
legal tender To the amount 81 slO IN all cases,
except the Obligations of the Guyei nnent Of the
United ates aud the customs dues.
The report Of the Director Of the Mint shows
that notwithstanding the silver dollar occupied
In law prior To April !. lS,S. the position of an
unlimited legal lender gold has for many wears
past been the money uf payment in this country.
II appear that bur "a con ptrutiVcly snail sum
In silver dollar pieces WAS ever coined. and that
II ~ no time cuu-i itttUd an appreciate part II
the circulation. This WIS due 10 the fact that
silver WAS more valuable a. bullion than its
stamped OF legal tender value ia the form Of
dollars Since the fall of silver. propositions for
the revival OF the silver dollar have been made,
and the position which II would occupy with
reference to uncxpired coin obligations. should
it, coinage with unlimited tender be again au-
thorized has been the subject Of considerable
discussion.
OBLIGATIONS.
The question whether the pledged faith OF tho
United Stitoa to paw IT'S obligations IN coin
would jn-ufN their pavmon' In me silver dollar,
Is Of no snail f. portancr as 'nrcting public
securities Of the United Stetes. In any discus
sion of the question ~ must be cpucrd d In the
outset that the SILVER 'ller was UNI Of value,
Wing the on aliiy Of legal tender for All sums
ana IN all cases, anu that the terms OF the
United Stat obligations do not exclude pay
ment therein. and that tno act of 1852, N which
Ia The pledge Of y vment in coin, uues not, in
terms, discriminate against silver Tnese pro-
visions re broad enuuSN in terms to include
payment in eth : Z III or silver. ana cpmpeis
an inquiry into the history. ur' duc'inn issue,
aud he relative condition ot guid ana silver
coin as money ~ PAYMENT, IN orier To a correct
Interpretation Of the me ning Of the language,
payment 10 be m de m G in"
Not long after the close Of the civil war. which
gave rise TO these OBLIGATIONS. doubts aose
10 the kiru OF money IN whrn these securities
Were payable. ana whi'h led to the Passage OF
the act e 1863 entlced. " An ace 10 strengthen
tho puhlic credit - and n MAS intended 10 dis
pei ali hesitation or duup' - to the purpose OF
the Government upon the question. and by
which the fallh Of tue United i,taies w. pledged
10 the pawn mt in m II II ifs obligations. ex-
cent those expressly uthsrNise Ir1Nided for.
Ihls Legislative act ion was in harmony with tnas
~ the executive administration.
what, then, was Intended. and understood to
h. intended. by this uleIgc # the q Yytrumentt
In gold c1in or IN silver. Or ntfl' hA IN eifherf
II will not I've questioned hy any ono COM
vcr~aut with the question az thar time mat the
popular iiuprrrs,"u' u"i 1" saw general c"nvlr-
tiou. was that tie pledge Wa for paN lncnt in
fact hat the Interest ON THIS cl~-Vf ol legations
payable ia COIN had uniformly hoon paid ia
gold that the customs receipts had been set
apart to this eud. aud that these were paid In
gold. and that the silver dollar had. a. money Of
payment, heretofore gone into general disuse,
especially in all large transactions. and could
scarcely Ice considered a. ntvnplAted in any
measure having for It's object to provide foI
payment Of Sums 50 ample as the Interest on
til" public debt, nj that time amounting to
the sum of one hundred and thirty million
dollars This view of the subject receives no in
considerable support, also. in tho LEGISLATION II
Congress Ia lS,D, 10y which the legal tender quail
ity Of the silver coin VIA limited TO ave dollars.
liy force of the laws of trade. quite indie lendent
If those of tunsrc--, the legal tender silver
dollar had actually disappeared from circulation
~ money, aud. Hlthuu- b not abolished 10y act Of
Cougre--. IL did l.ut. a. matter of fac exist for
commercial purposes and did not enter into
act ot l-,3 WAS cpntr -riN To- give to gold the
precedence ina the sthtdic- a the country 1t held
ia tine commercial world plactiU ally, and to do
TACT thr representa- If the mooney unit. Gold
money Of coin rNiuout- iu c-l-liii.'i sad in the
tran dctiuh- # Shoe Irca urN Departments
co.'s ANp HriIIoN.
Nv tho act NJ l'4t} the Treasury was authorized
tn receive de- oei. 81 gold cuin and bullion. aud
To- issue Ctrtln' itc. thelei redeem 3D. o Ia gold
coin, thus tn'iir ting mat as "brg n rs called
f.r payment ~ gold and not IA silver lbs
pruNlsl 10 Wlt b- frtr. h. tn c1u-oI.trcc win
the fact That our l1rcl-u tNrrauG.s t'r many
wears Law" Gee mast Ii III. t.f a.. Olri~, al
tuut DO !, lup r'ut 80 iur b. ... q utfl.i tand-
NIX his hefu e re zee. .. '.r. r' Liberation