Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1876-12-14
legations of the Government of the United States

The report of the Director of the Mint shows
that Notwithstanding the silver dollar occupied in
law. prior to April l, 1873, the position of IN
| limited legal tender gold has. for many years
| past. been the money of payment III this country.
1t appears that but a comparatively small sum
in silver dollar pieces ever coined and that it,
| at time constituted appreciable part of the
circulation This was due to the fact that silver
was more valuable as bullion than its stamped or
legal-tender value In the form of dollars. Since
the fall of silver. propositions for the revival of
the silver dollar have been made and the position
| which it would occupy with reference to unex-
| pired coin obligations, should its coinage. with
unlimited tender, be again authorized, has been
| the subject of considerable discussion.
The question whether the pledged faith of the
United States to pay its obligations in coin would
justify their payment in the silver dollar is of no
small importance as affecting public securities OF
| the United States. In any discussion of the ques
ton il must be conceded in the outset that the sill
yer dollar was unit of value, having the quality
| of legal tender for all and in all cases and
that the terms of the United States obligations do
not exclude payment therein, and that the act of
| 1869 in which is the pledge of payment in coin,
! does not, in terms, discriminate against silver.
| These provisions are broad enough. in terms. to
include payment in either gold or silver, and COM
pels inquiry into the history. production issue,
and subsequent treatment OF these obligations, and
the relative condition of gold and silver coin as
money of payment in order to a correct interpre-
| tation of the meaning of the language " payment
| to be made in COIN
| Not long after the close of the civil war; which
gave rise to these obligations, doubts arose TO
! the kind of money in which these securities were
| payable and which led to the passage of the act
| credit and il intended to dispc all hesita
| ton doubt as to the purpose of the Government
| upon the question and by which the faith of the
/ United States pledged to the payment in coin
Of all its obligations, except those expressly 9TH
| erwise provided for. This Legislative action
/ in harmony with that of the executive admins
/ tratiOn.
What, then, was intended, and understood to be
intended by this pledge of the Government! Was
il that the public securities to be paid in gold
| coin, or in silver, or might be in Ell her!
| 1t will not be questioned by any one cOnversant
with the question at that time that the popular
| impression, not to say general CONVICTION, was
that the pledge was for payment in gold This be-
lief may have obtained from the fact that the in
teres on this class of obligations payable in coin.
had uniformly been paid in gold, thai the customs
receipts had been SGT apart to this end and that
these paid in gold, and that the silver dollar
had as money OF payment, heretofore gone INTO
general disuse, especially in all large transac,
! tiOns, and could scarcely be considered
contemplated in any measure having
! for its object TO provide for payment of sums so
ample as the interest on the public debt at that
| time amounting to the sum of $13,, 100000
| This view of The subject receives no incon.
| siderable support, also, in the leg Station of
| Congress in 1875 by which the egaltendcr quail
| Try of the silver coin limited to IS. By force
OF the laws of trade, quite independent OF those of
Congress, the legal-tender silver dollar had actu-
ally disappeared from circulation as money, and,
although not abolished by act of Congress. it did
not, matter of fact, exist for commercial pur-
| poses. and did not enter into money payments
! The object and intent of the act of 1913 con-
| fessedly to give to gold the precedence N the
|
world practically, and to declare the gold dollar in
law be what it in fact, the representative of
| the money unit. Gold had for many years been
| treated as the principal money of coin payments
in legislation and III the transactions OF the Treas
| ury Department.
/ BY the act of 1868, the Treasury was authorized
to receive deposits of gold coin and bullion, and
| to issue certificates therefor redeemable in gold
coin thus indicating that its obligations called for
| payment in gold and not in silver. This proyis-
| ion, it will be seen, is in consonance with the
fact that our foreign exchanges for many years
have been made upon the gold basis, and thus it
| is apparent that the general understanding has
been of late years, for the consideration stated,
that The money of coin payments was gold, and
an obligation to pay In coin required payment In
AS was contemplated by Congress in the policy
| declared i'll 1869, the public securities then de-
pressed Immediately arose to par in gold, and
| have since maintained an enviabe position in thu
money centers of the world The five-twenty six
on the dollar, soon to par in gold coin and
have since borne the a erage premium of five
| per cent. at home aud abroad. At the present
time the borrowing power of the Government is
something less than four and one-haf per cent.
Its four and one half per cent. bonds short
time readily taken at par in gold and sold at
premium in this country and in Europe. If no
disturbing element enters into our monetary sys-
TEN, affecting the present policy of the Govern
Eent, it is believed that it will be found practical
BILE, at no remote period. to fund the National
debt into four per cent. bond having from thirty
to fifty years to run and this at an annual saving
in the interest of the public debt of S5. 800 coo,
which, if invested in sinking fund at four per
| II. ".
funded debt in a fraction over thirtY y, ars.
1t is matter of deep public concern that poll
cy so benefcent in results and advantageous to
the future should receive no detriment from con-
ficting interests, policies, or theories. Whatever
may be thought of the right to pay these public Sc
curties in cheaper money, it will remain true that
it is lawful to pay them in gold coin that the belief
that they to he paid has practical value in
the probable reduction OF the public debt equal to
One-fourth of the amount of the annual interest
thereon.
1t is respectfully submitted that the coin pay
ment 10 which the faith of the Nation was pledged
in 1869 was gold and not silver and that any other
view of it. Whatever technical construction the
language may be susceptible of, would be regarded
as of doubtful good faith, and its probable effect
prejudiCial to the public credit
ISSUE OF SILVER COIN.
Immediately upon the passage of the act of A pril
II, 1876 the Department, through its several indie
pendent Treasury Offices began to issue, in re-
dempton of the outstanding fractional currency,
the subsidiary silver which lad been coined under
the authority of the Resumption act of Jan ID,
1S75. To further relieve the PRESSING demand
throughout the country for money of small denom-
nations, the silver coin in tho Treasury previous
| to the passage OF the act above mentioned was
also issued in payment of currency obligations OF
the Goyeinme at.
Under the authority for the issue of silver coin
granted by the act of July p. 1876, the depart
ment, in addition to redeeming fractional cur
rencv, whenever presented for that purpose. has
also issued silver con in exchange for legal tender
notes as rapidly as the coinage at the minis would
permit.
Oct. g., 1876, there has been issued of silver coin
as above stated S22t 96.7 PIG, of which amount
there has been issued for fractional currency re-
deemed and destroyed. S12,953 $50 49,
| The demand for silver coin for circulation,
though growing less urgent still continues fully
equal to the capacity of the minis to supply it.
Until this demend shall have ceased. the coinage
will be continued rapidly as practicable to the
limit authorized by law.
CURRENCY REDEMPTION.
| Owing to the exhaustion of the appropriation
for transportation of United States notes and Sc
curites the express charges on legal-tender and
fractional notes, sent to his Department for re-
demption, and the returns therefor have not been
paid by the Government since the LIST of March
: last In consequence, the redemption of such
notes has greatly decreased, and the paper cur
rency of the Government is rapidly becoming unfit
for circulation. An appropriation sufficient to
meet the payment of such express charges is ear
nestly recommended
THE NATIONAL BANKS.
The report of the Comptroller of the Currency
contains full statistics of the reserves taxation.
dividends. earnings and losses of the National
Banks together with summary of their resources
and liabilities for each year since the system went
into operation. From this report it appears that
up to Oct. of the present wear 342 banks in all
had been organized, of which 20S7 were in opera
ton at that date The returns of these banks show
that they had an aggregate capital of Si99 S2 %
surplus of 1872 202 2S2; circulation outstanding,
S29i, 544O20; individual deposits, S651 1856, 210;
loans S275 1879; specie (including coin certif-
cates). 81, $50, 49, legaltender notes including
redemption fund with the I'm tied States Treasurer
S16743.695.
, COMMERCE AND NAVIGATION.
Tha rtior, 1f tb