New-York tribune., 1876-10-05
MR.. McCULLOCH ON RESUMPTION.
AN ABSTRACT OF HIs REMARKS BEFORE THE MEET
ING OF BANKERS.

MR.. McCULLOCH ON RESUMPTION.
AN ABSTRACT OF Hls REMARKS BEFORE THE MEET
ING OF BANKERS.
A Guestlon of so vital importance to the peo-
pe of the United States as nat othe currency can never
become stale until has been definitely settled, as god
and silver have not been obtnabie in sufficient amounts
for all purposes for which money needed, and cannot
meet an the ends for which local currency required;
bank notes, issued under competent authority and sub
ec necessary restrictions have been resOrted TO with
manifest advantage to trade and industry. Such notes,
when Of equal value to cOin answer an excellent purpose
In performing offices which ecn cannot as conveniently
and neSpensvey per orm but they can never he safe
substitute lOr H. .,ovlcrc did all this em O be .eiter
uaHrrto9 % IN the United states prior 20 me passage
0 M te eS cNder acts In fact II seemed 70 nave oerh
inc lhldton OF the trainers OF the Constitution opIo,
tec. the people against the losses 70 which they would
Oo exposed if anything hut gold ana silver should be
made lawful money by the General Government or ~
s5atessn when rs tht f5t Iestelcr 6l was under
consideration in the Senate ana House OF Representa-
tvs with what has hen heard SINCE III SoHSIess @ auu
Oat OF IT, Nothing better illustrates tie wide departure
which has taken place from tee Old landmarks oi con
seryatve opinion tian such com hilari7Oh hY aI,y1-
ence 10 the debates il Will be perceived that those Wh
opposed the h aid ~ on the ground mat Congress Hau
no power under the constitution 70 maze any .n "uI @
gold and silver legal tender ana tlat otner means LOT
extreme ana dangerous should he Tesorled TO- ana ll
those WHO supported the bill justified thcr action only
in the language Of &r Fesscude' on the ground OF aD
This was indeed lie general may say the almost uni
veTsa opinion not only up 10 the time Of the passage OF
tbc pgacnder ACTS but for time after The pubhc
rcCo,I and lie journals OF that day sustain me in saying
that the members Of Congress by whose yotcS the rst
legacuder m became law vOtcO for IL, ana thdt Their
constuents approved their action. solely because
Thought and doubtless honestly thought, that this
was absolutely necessary 10 save the Govern
neut from bnnd up'cy and tLe Union rom destf4o%oh non
speak adyisedly when say that H., Cnas-the tatl er
OF the Greeuhacks as he Is ced-BeySr dreamed that
these notes were 10 be anything cIet lnah epOIdg
currency. Mr. Chase never cOmnitied himself III iaNOr
OF the constitutiOnIy Of tue lgiendef acts anu Ae
tbe Ius; the Supreme Court, lie expressed the
ttnde for The DISCHARGE Of debt contracted before the
acts were passed He considered the Union worth pre-
unless money provided 10 keep the soldiers IN the
field, and he thought eIrOueousy perhaps lhsI tls
could without issue o. these notes. with the
character which was given 20 them III was under he
war power OF Congress, ana not under the constitution
that Mr. Chase recommended the issue OF the notes Win
w. nevc1 mieDded Eat they shoad do more than TO
assist in carrying the Government through trying
ti@nai banking system Mr. Chase was in no sense
iRaatcnisI. By no man were my financial views more
strongly Endorsed than by min 1his much have Iet 1t
10 be my duty TO say III explanation OF the GcIio oi r
Chase, whose memory revere, aud whom tcSafd as
having been one of the purest as ne was one oi IIe
abest men that this country has produced
Ii would be too mach TO Say tnat dr Chase dd not
make his refusal 10 dsbrse through the banks
the money ne borrowed OF them Was ony' ana ! @ uhh
serious one; but there few who are now unwilling TO
Treasury Dep rtmcnt during most tryin- period of
our financial history was marked bY singular ability
viseIs and Of them did he receive more judi
cons counsel than from Mr. spauldne Of Buffalo dsin-
eHished alike for his statesmMiship aud his accom-
p!tslments a banker, whom mn glad TO sec IN this
convention.
PAST UTrEBANCEs on THE GREENDACK.
In 1864 after the egalteuder had been issued TO
an amount exceeding 800 900 900, and the
ures Of value had begun enhance prices and encourage
epeculaon there was heard, for the first time here and
there expressions favorable 20 the United States notes
as permanent currency In 1868 these expressions be-
came so frequent aud the evidences that the currency
outstanding was excessive became apparent that
felf IN 4 bs my Z q advance
Treasury report, an outline OF my general financial
views and policy, which did in some remarks TO my
neghbOrs and friends at Fort Wayne On the lltn Ol
October 1868. urged that the work OF reduction OF
the currency hc beua and carried on resOlutey but
carefully aud pGGeni and that thereby We should
reach It probably without e;nhaassm NJ TO ltelmate
business; otherwise We GnOud have brief period Of
hollow and seductive prosperity resulting IN Widespread
adyocScd tue gradual withdrawal OF the cgaltender
ion Of their original advocates the purpose for
which they werc issued The paper circulation Of the
1850 and seemed 70 me that 80 much Of IT as was not
needed for he PURPOSES Tor which u had heen REQUIRED
aging enterprises Of doubtful Utility and Of merely
speculative character IL was not retired, and the result
OF the policy OF keeping volume Of circulation after
war demand FOR 1t had ceased just what appre
hcnded II would be- Az the financial crisis which such
policy 10 bring about was longer in coming than
had expected, so has it been longer continued and
greater in severity. also advocated tue retirement OF
the eealtender notes because did not der it the
proper business Of Congress TO furnish the people with
need not say that the opinions which advanced in
and eudCdNOIed 10 enforce
in that and in subsequent Ones have undergone
change; that the contrary they have been strength
ened and confirmed by what has transprcd since 1
know thai many intelligent and welmeanng men differ
radically from me- and that there some even who
attribute the misfOrtuucs which have befaen the
ty 10 the withdrawal circulation OF $40 OOO
GOO OF the United States notes in 1866 and 1867 This
opinion suppose honestly cutter AIMED, but 1t is diff
cult To understand how such conclusion could be
reached in view OF the fact that it subsequent to
that period and after tine policy OF contraction had been
abandoned that the OF the country In regard 10
railroad facilities anticipated by ut least quarter
OF = centIry-tbat many millions OF money sunk
IN Improbable enterprise that municipal Indebtedness
so increased as TO make local taxation IN many
cities and counties well nigh uusuppOrtablc-aDd
many thousands Of ordinarily prudent people, IL
duced by tho general spirit OF the times contract
debts from which they could only be relieved by bank
ruptcy.
HOW TO RESUME.
But have been dwelling too long the past There
is apprehend very little difference among bankers as
10 the efoet Of an rIedeemabe lega-tendor currency
upon business and the public morals. The vra question
now h What is 70 be done to restore the specie standard
and bring sbout specie payments So far it must be ad
mted that very little has been done TO accomplish this
most desirable result besides the passage of an act
pedgng the Government 10 resumption OF the United
States notcs in 1879. Now, gentlemen, nobody under
stands better than you do that his act viii be nuly
without speedy legislation sustain IL. Hopeful as we
may IN regard the recupcratve OF this great
nation OF us Is sangune enough TO suppose that
the desired object will be attained without legislation OF
some kind. We told some years ago, by gentlemen