Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-08-17

load Of interest which We have annual !
ly to pay to foreign creditors. Certain |
" II there is any one policy imperative |
ly epjoined upon US by the exigencies Ct |
our situation it is policy that would |
tend to bring back our debt from foreign |
hands and place it once more in the |
hands Of our own citizens, so that the |
large amount of gold interest paid out |
annually may be paid out to cur own |
people aud become the basis Of q |
permanent and reliable resumption |
of specie payment. But the fact !
that the bonds so issued for the eXtin-
guishment of legal-tender notes m y so
and will probably go abroad is not the
leading objection; but it is that the in
terest bearing debt Of the government
should be increased at all, no matter
where held; for l do insist, sir, that a
sound policy fJrbids that there shall be
any additional burden in the way of in
teTest laid upon the already OVertsXed
resources OF the ccu1try. Secondly, by
redseming the legai.tenders with gold
purchased with government bonds, and
not providing for their fe-is: lie, which is
certainly not contemplated by the act,
the circulating medium Of the country
will be reduced to the extent of $780,
600, 600, or more than one-bslf Of what is
in circulation at present, No substitute
is provided by the act for this vast
amount OF useful currency so with
drawn, uQless it can be assumed that
the gold with which it will be redeemed
will remain in the country and serve as
a medium of exchange, a result Ito say
nothing OF the unsuitable character Of
gold as a circu atipg medium) so de-
pendent upon the commerce, trade, in-
dustries, aad general prosperity Of the
country at that time as to be too doubt
fdl for sane craftsmanship to rely upon.
This, however, is called ian act to provide
for the resumption Of specie payments"
1t is glazing MISSIONER aud intended
to Gelnde. AS a more truthful and APP
| propriate Characterization 1t should have
| been entitled Gan act to increase the
| public burdens by fnndiEg $685., OO0, 900
| of non.interest-beari g obligations of the
| government, used anu needed as curTen.
| CIV, into the gold interest-bs g bonds
of the government" Its true character
will thus be indicated, for We look in
vain into the law for any other prOvis-
ion Except that which l have COM
mepIed upon) that looks in the direc-
| ton of resumption. Nothing is said in
| it in reference to resumption by the ma
| tiongl banks Of their obligations. No
| provision found requiring them to keep
| ard retain one-thIrd or any amount Of
| gold for the redemption Of the 1884, OOO,-
| 600 OF notes which they have in circula-
| ii N. We are told, however, that when the
legal-tender or greenback shall all have
be an redeemed by the government there
W Ii be nothing else for the banks to
pay their nOIes in except gold, and they
| will be compelled to provide themselves
with a sufficient gold basis to protect
their circula ion or let their bonds de-
posted as security be subjected to the
satisfaction OF their notes. Just think
for q moment Of the character OF the
banking system which is thus offered to
the country as specie system.
Not dollar Of gold is required, not even
the interest upon their bonds deposited
as security with the government is to ba
held and retained to secure the imme'
diate convertibility Of the bsnk-note. 1t
is rot sufficient to say that the bank Is
good, that it has ample assets, for such
8 statement only shows that your ma
tional bank paper is founded upon and
has credit alone for its b9si5-s basis
that the resumption ist claims to repu-
dlate when he insists that cur monetary
system shall rest upon gold alone. II is
useless, Mr.. Speaker, to speculate upon
the possible if not probable cOnsequen.
ces Of the crude act Of January IA 1875
l. executed by the secretary Of tbs
treasury it may result in the retirement
of every dollar Of the legal-tender cur
rency now IN circulation at cost, II
already stated, of $20, 600, coo interest an
nually. The gold paid out for it, being
borrowed and not coming to US in Obedi
ence to the great anu memorable laws o
trade, may, as it will most likely do
leave US and go abroad IS for years pas
il has been going, and thu only circu
lating medium left in the country may
be the 1884 900, 900 Of national bai
, notes that ere not convertible into gOl5
and are only good because they are base
upon the credit of govelnmen
. bonds. But contraction, great and ruin
, point, will rot probably stop here
. Even the volume OF national bank note
, may be greatly reduced by January l
1879, whatever may be the increast
afterWsrd OF that kind OF currency
, These banks may not be willing to SET
. legal with which they may nov
, redeem their notes, retired, and them
, | selves left u1der legal obligations K
! provide COin for the redemption Of thei
| notes. While legal-tendeIs are at dis
| count and may be- used for that purpOst
/ ! and before January l, 1879, the bank
| will surrender much OF their circulation
D | as they have already been doing, IN an
, ticipation of the execution OF the act.
! has been stated on the authority of 10,
/ | able and accurate friend from OHIO Nj
. Southard) that in one year from tn
3 time of the passage Of the act the bank
= have retired and Cancelled SIC, 456, ia 0
/ their circulating notes, and have de
D posted in the treasury S22 OIL 2O6 will
i which to redeem like amount OF Ghei
D notes, making practical contraction
: their circulation Of $32, 467, 320. In tn
same time there was a redemption o
, | legal tenders to the amount of SOL
. $50, and of fractional currency 81, 243,
525, or total practical contraction @
S44, ,625. This contraction of tn
volume OF currency, already too small
q in my judgment, for the wants Of tn
country, may and in ali probabilit!
!. will go on, aud perhaps at an &C
: CELEBRATED rate as the first c
q January, 1879, draws nearer, threaten
D ing, as I said in the debate on the cen
|. tennial appropriation bill, "a none
4 famine unparalleled in the history G
:. the country, parslyzstion Of industry
}. prostration in business, destruction c
!. values, of confidence. o; credit, and c
g hope in a reign of poverty, want, an
d ruin" While it will be remembers
v that whatever effort has been made
|. repeal this impractIca0le and dangerOu
r law has come from the Democratic sid
= OF this hall, and had its chief supper
O from that side, in my humble ju lgmen
:. our failure as party here to meet thi
q Just demand and throw upon R3Iubli
n can senate the responsibility OF all tn
p consequences of its attempted ecutio
n may subject US to some severe and 10
Il unmetited criticism. or the c)nse
: uuer ces of this disappointment: of Ia
q public expectation / shall have but littl
o to say. Parties are vatueless when the
). cease to represent great, living, practi
h cal issues. Bold, independent thought
q that disorganizes old and gives coheI
# ence, force and power to Lew parties
# at it's work to-day. If it cannot fore
n an existing organic alton in its direction
"a it may create an Sgency suited to il
!. purpose. The protest against contra
# ton and demand for circulating mC
a dunn suited to the wants of the countr
IS are not the mere idle catch-wOrds OF