The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-02-20
THE DANGERS OF CONTRACTION.
Our Prosperity Since The War Commensurate
with the Volume Of the Currency.
THE POWER TO COIN MONEY DEFINED.
California and Her Refusal to Adopt the
National Monetary System.


In reply 70 Mr. Blaine In opening after expressing his
thanks the House for the opportunity afforded him.
he referred 20 the gentleman from Maine with whom
he he speaker had long been harmonious political
relations and whom, though many years his Junior he
had been happy TO look upon a leader, and then
called attention TO financial policy Daugurated as be
said by Andrew Johnson's Secretary OF the Treasury
and upon which he charged all the existing financial
evils Of the country. He then, in the name Of tho
people he represented protested against the evils which
have followed upon this policy aud against the apollo
gcc concession that the law providing for the issue of
legal tenders is constitutional and denied that in the
acts providing for its issue the government called to its
aid power never before exercised He also protested
against the denuncation OF all who oppose the repeal
of the legal tender clause in1ationists and con
tnued:-
SIR Having thus protested against the right of the
gentleman from Maine to speak this subject as he
coed to examine his remarks somewhat In detail This
Is not pleasant duty for shall have show his
allegations are loose and often unfounded his deduc
tons illogical and inconsequenta and his conclusions
untenable Is there any doubt Of
THE CONSTITUTIONAL
OF congress TO establish paper money and make legal
tenderf Tho Supreme Court OF the United States
settled this question by confirming the
gentleman, and in dong so left no room
for such eloquent but irrelevant suggestions
in support OF the measure he would rest it upon
by quoting language imputed TO John Milton. Not
only does the constitution empower Congress emit
such money but lays upon it the duty TO do II when
the exngencies OF the people government require,
as it had already twice done in time of peace, and
may be compelled by any of several to do again
and from time to time Does the gentleman hold that
the government may delegate the execution of a
power which 1t does not possess9 That it may not is
an automatic and indsputabie proposition, yet he must
remember that In both acts creating banks the United
States Congress delegated the power of issuing
which should be legal tender IN payment Of all debts
and obligations due the government and, therefore
al " aer NM 10 hv
all the people OF the country. These precedents, sus
tanned by frequent decisions of the Supreme Court
which the gentleman would have US believe distin-
gushed Senator'S voted for the Legal Tender bill when
without the money established by 1t the government
would have been hopelessly helpless.
Mr. Kelley here quoted from the article referred to
which insists that the power to coin money involves
that of issuing paper and showing the of gold
and silver for currency might become impossible
through abnormal increase decrease the value
of the metal and If this the only material which,
under the constitution, could be used, circulating
medium would become an mpossibility He also
quoted from the opinion Alexander Hamilton as to
the consttutionalily of the chartering the first
bank of the United States and referring Mr. Baines
speech, continued
The gentleman said
With the Of public and the doubts and
vsstudes the struggle fallen far below
par in gold and became
for their redemption and no limit to their
volve the Union in rrerevabe disaster that
moment the military situation, with its per its pros
rapidly bonds could furnish H. and the
unless definite limit could assigned to the issue OF
legal tender notes. Accordingly Congress sought and
and they passed bill sTantn 500 additOns legal
in the same law solemn and nedre
that he total Of United s.stes issued
be issued, shall never exceed 800 OOO,OOQn
This pararraph presents a strange admix truth
and error II ignores the by which the value of
commodity gold, had been artihcialy appreciated
and ascrbes the rise to the depreciation OF the lawful
money OF the country which was, for all exchanges OF
commodities and ments except OF duties imports
and interest on government bonds, the standard OF
value II must, freely admit, have been apparent to
every clear headed observer that the continued issue
OF legal tenders with no provision for their redemp
tlon and no limit to their amount would utterly destroy
the credit of the government" But SIR, Congress had
provided that the notes should be redeemed
by their reccivaby in exchange par for six per
bonds; and the gentleman must know that so long as
they were thus convertible into interest bearing
bonds they remained almost or quite at par with gold,
and that the action OF the government repudat
ing this pledge and while refusing TO receive them for
customs duties, demanding gold in payment thereof
that impaired artificial value TO gold and precluded
the possibility OF It's use as a standard by which
TO measure the price OF land or commodities.
But by what enactment did Congress add another
500 600 600 TO the volume OF legal tenders which
made $500 000 600 In all and Incorporate therein the
solemn assurance and pledge that the total amount Of
United States notes issued and 10 be issued should
never exceed $500 600 0O0r have been unable dis
it IL certainly not brought TO the attention
Of the Supreme Court in the famous of The Banks
VS. The Supervisors, reported in 7 Wallace, for in
delivering the opinion in that case the Chief Justice
who Secretary Of the Treasury at the time all
acts relating 70 the subject were passed. says
The Of February % 1854 provided the issue Of
these notes 20 ,he amount Of $3.50 The act Of July
ton sezeryinr however SO oooOo Tor the redsrnnfio ~
loans 80 Be issued and only when
issue Of lS4U9o0e Vas aoshorAed, making the whole
Tro.
been OF the fact that the volume OF legal tender
notes was limited 70 $500, 600 000 for the Hon. William
Treasury 1871 while yet Acting Assistant Secretary
published avolumo OF practical information" CON
corning the public debt OF the United states by refer
page 80 Of which nd that the amount Of legal
tenders in actual circulation, including demand notes
reached its highest point about August 81 1895 when
$433 100 500, and that II was 0rst reduced below
$400 coo 900 september J. 1896 Again. the gentle
man SAID
lesson might learned by those willing to be taught
Sa ''' When w had Of legal tender cSsa
ton = stood for Long while nearly y. q par with gold As
rapid and the time fixed the S10oooooOo limit
ana n o &
years before In the spring Of ls M go g
coin In June 500 legal tender would buy
only $4,000 600 in gold coin.
And added that
II We had not axed tho 500 900 limit I.
the legal tender with all its capacity for good in
scnese Of ths Fspcb asssns and the Continental
rency The - 100000 limit happily saved rs from that
diren experience and caused tho legal tender 70
appreciate.
What strange confusion Of fact and fancy we have
here The greenback was only saved from the late
OF the French assignat by the force OF Limitation
which did not exist, and was, In fact largely en-
ceeded The divergence between the purchasing power
OF the greonback applied 20 gold, the value OF
which had been artinciay enhanced by our unwise II
not unhallowed legislation, Is applied to lands houses
and merchandise and, without investigating the facts
or case but assuming that they must accord with
ms preconcelved theories, the gentleman gives US
statements OF the purchasing power legal tender
when but Tor our regard for him. would be laughed 70
scorn IN view OF the facts Of history. Sir, affirm,
without fear Of successful contradiction that neither
the alleged depreciation OF the legal tender money
the actual appreciation OF gold had
A PKRoKPTiBLE
upon the market price Of land domestic merchandise
IN any part OF our country. In particular localities
special causes may A. the time have raised the price OF
land and houses; but every dealer IN real estate
throughont the country will connrm the allegation
that the fluctuations or tho gold market had at no time
an appreciaole effect upon tho price OF real estate
How was u with merchandise and commodiiiesf Not
wrfhetandnn the glowing Or