The Toledo chronicle. [volume] (Toledo, Tama County, Iowa) 1873-1924, 1876-12-14

Issues to the extent of s}5,67i,55o Of four and a
half per cent bonds have been made, and refund

Issues to the extent of s95,67i,55o of four and a
half per cent bonds have been made, and refund
ing operations are still in progress.
RESUMPTION OF sPECIE PAYMENTS.
In March 1869 by an act entitled - An act to
strengthen the public credit the faith Of the
United Statcswas " solemnly pledged to the pay
meGt in coin or lis equivalent of all the ob@a-
tons of the United States not bearing interest
known as United states notes. and of all the in.
tcrest bearing obligations of the United States"
and, further, to make provision, at the earliest
practicable period for the redemption of the
United States notes in COIN
by the act of January. 1879. Congress declared
the purpose OF resumption OF specie payments on
Jan. lsI9 and to that end. and in execution of
the pledge of the act Of 1869, provided for the
demptiOn Of the United States notes, and for the
issue OF Nationalhank notes in lieu thereof and
thus, amid conflicting theories. declared, in eff
feet. a monetary system combined of coin and
the notes TO be redeemed. the amount to be pro
vidcd for is necessarily uncertain and, aS il will
depend upon events Il condition of things over.
which the Secretary has little ornO lntrOl ImpOssi
bic for him TO determine. He is authorized if in his
Judgment deemed necessary to carry the act into
effect TO accumulate an amount OF gold equal 10
the entire amount Of the legal tenders Ontstand-
Ing on That day; but this, ii ii were not morally
impossible, would be 50 ineypgdient, rs u tnan-
cial measure that it is not to be presumed to have
been contemplated by Congress. and so not in
Cumbeut on the Secretary. Still he is expected
AID required to meet the demand of rcdemp-
tion by the accumulation OF coin adequate in
data for his guidance in the exercise of 1t.
What il essential for him To know in order to the
performance OF the duty is wha amount OF notes
will certainly be presented for redcmpton on the
isl OF january. 1879. As this is Clearly not az
tainuble, he is left to deal with what is probable,
dctermiUahIr upon the condition of such General
causes us viii be likely 10 attend that event 1t
would not be diicult the present state of none
tary affairs to make probable estimate of the
amount required il the redemption were TO take
place in January next and it is probable that
mOiety of the sum total Of these notes would be m
ample preparation: but, while it is 10 be hoped
that the credit Of our bonds may not be less in
1879 il may not be known that in other respects
the situation will favor such re -u II is, however,
deemed probable in any supposable condition Of
monetary affairs, that. if no mCOnSidcrablG reiuc-
ton of the volume of these notes should he made
in anticipation Of the redemption of iSI9 the
preparation required by accumulation of coin for
The demands OF January. 1879. and Immediately
thereafter, must be at least an equal proportion Of
the sum total of the notes outstanding As TO the
surplus revenues as II measure of redcmp
ton, such is the present and probable fu-
upon them, that it is not deemed ut all probable
that any c0ns!drrable sum not otherwise
appropriated could be devoted to this end In
this connection, however. it is proper to
observe that nov, for the drs time in many years.
owing to the large reduction of currency pay
mens. the sHlCs Of gold to obtain The equivalent
currency therefor, are no LONGER necessary, and
thus considerable accumulation of gold may
be anticipated from the surplus from the customs
revenue.
By the act of Jan. H. 1870. the Limitation upon
the issue of National BGnl; notes was repealed
and the volume Of currency left TO be determined
by tie business demands of the country. The
Secretary of the Treasury required TO retire,
Of legal tender notes eighty per cent of the sum
OF National Bank notes then Issued in excess of
SD0O00,DCO. The amount Of additional currency
Issued since the passage OF this act Is SlSSu355,
and legal tender notes to the amount OF sl4, 1884,,
IS have been retired.
ny the act of June q. 1874. National Banks
might withdraw their circulation in whole or in
part by depositng lawful money with the Treas
uTer. and withdraw proportional amount of the
bonds; and it was made the duty Of the Secretary
TO retire egn-tcndcr notes TO the extent of eighty
per cent. of the baninotes thereafter issued. I'm
der this act 81 SOB 800 of lesa-tender notes have
been deposited ill the Treasury. and s37 l22,t 80 of
bank notes. accordingly, have been redeemed and
destroyed
The amount of legal-tender notes outstanding
Nov, l. 1876 was $50 ,535,16. The amount of
said notes on deposit for the purpose of retiring
circulation was so 9l09if The amount Of Ma
tiona Bank notes in circulation that day was
SO IA, 464 less and of legaltender 81, 49, less
than on Jan. H. 1SI5-a total decrease in circUla-
ton, under the operation Of the act, of S364i,i 49,
From these facts. as well as from the large ac.
FOUNDATIONS of money al the money centers and
the lack Of demand for it. it is apparent that tho
volume of currency is largely in excess of the rca!
demands of legitimate business, and that portion
of the legal tenders might be gradually Withdrawn
without embarrassment TO the business OF the
country.
In the interest of permanent redemption, and as
a means of maintaining the same, it is deemed
important also, il not quite indispensable, that
provision should be made requiring the National
Banks to gradually provide coin in such ratio as
the Secretary OF the Treasury may direct, and 10
hold the same Il part of their legal money re-
serve that said reserve, on the list day OF Jan
nary, 1879, shall be equal in amount to the entire
reserve required by law. To the same end, as the
fractional currency is Withdrawn. it is deemed ex
pedient that not only the vacuum caused thereby
in the matter of change should be made good but
that as additional change the volume of silver
,bnn1 bai prr, sod n he al nj pDSt
$50 100000. and silver made legal-tendcr to the
amount of ten dollars i'll ali cases, except the OBJ
legations of the Government OF the United States
and the custom dues.
PAYMENT OF GOVERNMENT OBLIGATIONS II COIN.
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 an nm
limited legal fender, gold has, for many years
past, been the money OF payment in this country
1t appears that but Il comparatively small sum
in pieces was ever coined and that it,
at no time constituted an apPrcciabe 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 il would occupy with reference 10 unex- |
pired coin obligations. should its coinage with |
tender, be again authorized, has been |
the subject of considerable discussion.
The question whether the pledged faith of the |
United States TO nav It's obligations in coin would
justify their pa yment in the silver dollar Is Of no
small importance as affecting public securities Of
The nifed States III any DISCUSSION OF inc utts-
lion Unjust be conceded in the outset that the sill
er dollar was unit Of value having the quality |
II legal tender for all sums and in all cases and
hat the terms of the United States obligations do /
lOt exclude payment therein, aud that the act OF
500. in which is the pledge Of payment in coin,
Ices not in terms, discriminate against silver.
These provisions are broad enough. in terms, to
include payment in either gold or silver, and COM
,es an inquiry into the history. production, issue,
nd Subsequent treatment of these obligations: and
he relative condition of gold and silver coin as
money of payment in order to a correct interpre-
0 be made in coin.
Not long after the close of the civil war, which
ave rise 10 these obligations doubts arose as 10
he kind of money in which these securities were
ay4ble, aud which led to the passage Of the act
1859. entitled +" An act To strengthen the pubic
rcdit;r and it was intended to dispcl all hesita-
pop the question and by which the faith of the
,nited States was pledged to the payment in coin