The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1876-08-05

cy capable of being distributed IN small
: sums among numerous sellers. The addi-
iiIral ned of currency at such times il
fivs or more per cent of the whole volume,
and if a surplus bcyon what is required
for ordinary use docs not happen to have
been gu hand at the money counter, a tcar.
city of currency ensues and also stringen-
ty in the loan market.
IL was in reference to such experiences
that, in discussion of this subject in my
annual message to the New York legisla-
ture OF January 5, 1875, the suggestion was
made that 1.-THE federal government is
bound to redeem every portion of its issues
which the public do not wish to use. "
Having assumed to monopolize the supply
Of the currency and enacted exclusions
against everybody else, it is bound to fur
nish all which the wants of business re-
quire." The system should passyely
allow the volume OF circulating credits to
ebb and flow according to. the changing
wants of business. 1t should initiate ts
closely IS possible the natural laws of
trade which 1t has superseded by artificial
contrivances la similar discussion in
my message of January 4, 1876, it was said
that resumption should be effected by such
measures as would keep the aggregate
amount Of currency self adjusting during
all the process without creating at any time
an artificial scarcity, and without exciting
the public Imagination with alarms which
impair confidence, contract the whole large
machinery OF credit, and disturb the natu-
raj operations of business. Public econ
omies, official retrenchments and wise
finance are means which the st. Louis con-
vention indicates as a provision for re-
serves and redemptions. The best resource
is reduction of expenses Of the govern
ment below its income, for that imposes no
new charge on the people. If, however,
the improvidence and waste which have
conducted US to the period of falling revc-
nues obligc us to supplement the results of
economies and retrenchmens by some re-
sort to loans. we should not hesitate. The
government ought not to speculate on its
own dishonor In order to save in
terest on its broken promises, which
it still compels private dealers to ac-
cept at fictitious par. The highest
national honor is not only right, but would
prove profitable. OF the public debt 995.-
600 900 bear interest at six per cent in gold
and 7l2 600 COO a, five per cent in gold, the
average interest is So per cent. A finan-
cid policy which should secure the highest
credit, wisely ayaied, OUGHT gradually to
obtain reduction If one per cent in inter-
est on most of the loans. A savin. of one
per cen, on the average would SIT, 1000, 900
a year in gold. That saving regularly in
vested at a. per cent would 10 less than SO
years extnguish the principal. The whole
], 200, 900, 900 Of funded debt might be paid
b. this saving alone, without cost to the
people. The proper time for redemption
IS the time When wise preparations shall
have rpened into pertec. ability to accom-
plish the object with u certainty and ease
that will inspire confidence and encourage
reviving of business--the earliest time in
which such result can be brought about is
the best. Even when preparations shall
have been mstured the exact date would
have to be- chosen with reference to the
then existing state of trade and credit, the
operations Ia orr own country, the course
OF foreign commerce, and the condition of
exchange with other nations The specific
measures and actual date are matters of de
tail having reference to ever changing
conditions they belong to the domain of
practical craftsmanship. The captain
of steamer about starting from New
York to Liverpool does not assemble q
counsel over his ocean chart and fix the
angle by which to lash the rudder for the
whole voyage human intelligence must
be at the helm to discern the shifting
forces OF the waters and winds human
hand must be on the helm to feel the ele
menis day ty day and guide to mastery
over them. Such preparations are every
thing Without them a legislative COM
mand fixing the day, an official promise fix
ing the day are shams. They are worse !;
they are snare and delusioa to all who
trust them. They destroy all confidence
among thoughtful men whose judgment
will at last sway public opinion. An at
tempt to act on such q command, on such
a promise, withou. preparation, would end
| n a no gnsnanpinn , ,rau1l 10
calamity, prolific of confusion, distrust and
distress. The act of congress of January
IA, 1875 enacted that on and after the Ist
of January 1879 the secretary of the treas
ury shall redeem in coin legal tender notes
of the United States on presentation at the
office of the assistant treasurer in the city
of New York. 1t authorizes the secretary
10 prepare and provide for such resumption
of specie payments by the use of any sur
plus revenues not otherwise APP
propriated, and by issuing in hi'
discretion certain classes of bonds
More than one and half of four
years have passed. Congress and the pres
ident have continued ever since to unite in
acto which have leglsated out of existence
every possible surplus applicable to this
purpose. The coin in the treasury claimed
to belong to government had, on the 80 h
of June, fallen to less than $40 100000, as
against $50 900, 900 on the 1st of jan lry,
1875, aud the availability of part of that
sum is said 10 be questionable. The reve-
nues are falling faster than the appropria-
tions, and expenditures are reduced, leaving
the treasury with diminishing resources.
The secretary has done nothing under his
power to issue bonds. The legislative com
mand. the official promise fixing the day for