The New York herald., 1876-12-06


cumuiation of com adequate in amount, at his ais
erection, with certain data Tor bis guidance In
the exercise OF it. What Is essential for him to
know in order performance OF tho duty Is,
what amount OF notes Will certainly De presented Tor
redemption on The ist OF January 1879 As This IS
clearly attainnbe be rs eit 10 deal with what IS
probable determinabIe upon the condition oi such
general causes will be likely TO attend
that event 1t would net be difficult In
10 make proolbe estimate ol the amount required II
the redemption were 10 take place in January next
and II is probable ;hat accumulation Of AN amount Of
equal TO moicy OF the sum total OF these notes
would be an ample preparations but while u = 70 oe
hoped credit OF bonds may not be less IN
1879, may be known that IN other respects the
situation will favor such result. II Is however,
deemed probable in any supposabic condition oi none
tary affairs that II no nconsdcrabie reduction OF Tho
volume OF these should be made IN Anticipation
the redemption OF 1879, the preparation required ny
sccum ua.ivn OF CON for Inc demands oil January.
1879, and immediately thereafter. must be ~ least an
equal proportion o the sum total OF the notes out.
standing As the surplus revenues as measure OF
rcdempton such is the present aud probable future Of
these and the demands upon them, that u 10
mol deemed al all probable thar any considerable sum
otherwise apps oprated could be devoted 10 this
end. In this connection, however, IS proper 70 OBJ
serve that now, tho first time IN many years.
owing 10 the large reduction Cf currency payments
The sales OF gold 10 obtain tho equivalent currency
therefor no longer necessary, ana thus consid
erabc accumulation OF gold may be Anticipated from
the surplus IRON the customs revenue
by the act OF January "A. 1875. sne Limitation upon
the issue OF national bank notes was repeated and
the volume OF currency left TO be determined
by the business demands Of the country.
quircd retro OF legal tender notes eighty
per cent OF th. OF national bank notes then Issued
In excess OF $500 oOOu u00 Tho amount OF additional
currency issued since the passage OF this is
SIS, ,0S0 1885, and legal tender notes 10 tho amount
OF sli, ,464, 2S2 have been retired
BY the act OF Juno "a. 1874, rational banks might
withdraw their circulation In whole or IN part by
depositng lawful money with the Treasurer and with
draw Il proportional amount OF the bonds, and Il was
made the duty cf the Secretary TO retire legal tender
notes to the extent OF eighty per cent VI The bank
thereafter issued Under this act $5a S53 900 OF
legal tender bcen deposited the Treasury
and S37. o6y Of bank notes accordingly have been
redeemed and destroyed.
Tho amount OF legal tender notes outstanding No
vember l, 1876 $685., ,535, 7l6 The amount Of
said notes deposit the purpose OF retrna
notes in circulation on that day was $as, 49, 4G4 less
and OF legal tender 2Si less, than January
IL, lSa5-a total decrease circulation, under the
operation OF the act OF $43, C0s,saS
From these facts, AZ we'll rs from tho large accumu
lations OF money the money centres and the lack OF
demand for IT, It apparent that tho volume of cur
rency IL largely in excess Of tho real demands of
legitimate business, and that portion OF tho legal
tenders might be gradually withdrawn without Gun.
barrassmeDt 10 tho business OF The country.
In the interest Of permanent redemption, and as
means maintaining the same II Is deemed Important
Also II not quite Indispensable that provision should
be made requiring The national banks TO gradually pro-
vide in such ratio tho Secretary OF the Treasury
may direct, aud to hold the same part Of their
legal money reserve, that said reserve the lst
day Of January 1872 shall be equal IL amount 10 the
cntirc required ny law. 7" tho same end,
the fractional currency is Withdrawn, deemed ex
pcdicnt that only the vacuum caused thcrsby in
additional CHANGE the volume Of silver should DO
Increased to tho amount OF lsast sSp 000 OO0 and
svcr made legal tender to the amour, Of $40 IN ALI
except the obligations o Tho government OF tho
United states aud tho customs dueR
Tho report OF the Director Of the Mint shows that,
Notwithstanding the silver dollar occupied law, prior
April 1873 tho position OF Unlimited legal ten.
DER gold has Tor many years past been the money Of
payment in this country.
il appears that but u comparatively small in
silver dollar pieces was over coined and that u AZ no
time constituted apprcciabc part OF the circulation
This was due 10 the tact that silver WAS more valuable
as bullion stamped legal tender vauo IN the
form OF dollars Since the fall OF silver propositions
the revival Of the silver dollar have been made and
the position which II would occupy with reference TO
uncxpred oblgations should its coinage with un-
limca tender DO again auth, rzed has been the
jcct OF considerable discussion
The question whether the pledged faith OF the
United States to pay lis obligations in coin would JUS
lily their pay msns the silver dollar OF small
cccting pubic securities or the United
States In any discussion OF tho question IL must bo
conceded IN tho outset tnat tho silver dollar was unit
OF vaiue, having the quality OF legal tender for all
sums and cases. aud that the terms ot tho United
obligations do not exclude pay therein, and
that the 1862 ia which Is the pledge OF paymen
In coin, docs not, terms dscrmnats against silver.
These provisions broad enough, iE terms,
10 inclule payment III either gold or silver, and
compels an inquiry into tho history production Issue
and subseq treatment OF obligations, and
the relative condition Of gold and silver coin AS money
payment Ia order to correct Interpretation Of the
meaning Of tho language payment TO be made IN
coin"
Not long after the close OF the civil war; which gavo
rise to these obligations, doubts 10 the kind
money in which these securities wore payable and
which led to the passage of the act OF 1862 entitled
s.An act strengthen tho public crcdit;" and II was
intended dispel all hesitation doubt to tho
purpose oil tho government upon the question: and by
payment in coin OF all its obligations except those
prcssly otherwise provided for This legislative action
was IN harmony with that OF tho executive admins
tration.
What, then, was Intended, and understood TO be
intended, by this pledge OF the governmeutr Was u
that the public securities wers 10 bc paid IN gold coin
rutlN non tuhf hs N NIL h0R
1t will not be questioned by ono convcrsant with
the question at that time that the popular imprcssion
say general conviction, was that the pledge
was for payment In gold This belief may have OBJ
tho fact That the interest this OF
obligations payable In coin. had uniformly been paid
In god that the customs receipts had been set apart
this end that these paid In gold, and that
tho silver dollar had, as money OF payment, thereto
fore gone into general disuse especially IN all largo
transactions, and could scarcely be considered US
contemplated in any measure having for its object TO
provide for payment o sums SO ample Ms the interest
| on the public debt, that time amounting TO
OF $3.50, 900 THIS view OF the subject ro-
ceives nconsdcrablc support also the legislation
OF Congress 1878. by which the legal tender quality
OF the silver coin was limited 10 S. BY force Of tho
laws OF trade quite independent those OF Congress-
the legal tender silver dollar had actually disappeared
from circulation money. and, although not abolished
by act OF Congress- did not AZ matter OF ac exist
for commercial purposes and dd not enter into money
payments Tho object and intent OF the act OF 1878
confcssedly TO give to gold tho precedence In the
statutes OF the country itheld In the commercial world
practically and declare tho gold dollar In law 10 be
what Il TACT, the representative Of the money
unit Cold nad lor many yearS Deeh treatcu as the
principal moncy coin payments IN Legislation and
sho transactions OF the Treasury Department.
| BY the OF 1868 the Treasury authorized TO
deposits Of gold and bullion, and TO issue
t6cates therefor rcdcemabc IN gold coin. thus indca
tng that It's Obligations called for in gold and
silver This provision u will bc seen, Is In con-
with the facs that our foreign exchanges for
many years have been made upon the gold basis, and
thus Is apparent that tho general understanding has
been vi late years. Tor the consideration stated that
the money Of coin payments was gold ana un obliga
| tion to pay in coin required payment in gold coin.
Az m mia tai bV lOQu ia
clared in 1859, tho public securities then depressed
tanned an cnviablc position ut the money centres OF
the world. Tho hvc.twcnty per cent bonds, then
selling eighty eight the dollar,
par gold CON- and have since borne the average
prcniuiun Of five per cent ut home aud abrond. ~
the present time the borrowing power OF tho govern
ment ,s something less than four and one-haif per
liz fosa hnlG han ouxh harl