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


The subscribers agree to pay for said AZ per
cent bonds, par and accrued interest, in gold coin,
matured United States coin coupons. six per cent.
fve-twenty bonds, or United States gold certif-
Gates. Against the subscriptions of the contract
ing parties for AZ per cent bonds, the following,
described notices for the redemption of United
States vetwenty bonds, act OF March 3, 1865, have
been issued viz:
Call dated Sept. /. 1876 ....$ 10O00000
Call dated Sept 6, 1875. 10,00000
Call dated sept. y. l6.6...--.....--.. lp-UJlOJ0
Call dated Sept. 21 1876 100000
Gail dated Oct. 4, lSI6................. 10,OODOM
Total. 0.OOOO0O
Issues to the extent of ss5,G7i,55o of four and
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 States was " solemnly pledged to the pay
meGt in coin or its equivalent. of all the obliga-
tons of the United States not bearing interest,
known as United States notes. and of all the in
tcrest-b 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. 1875. Congress declared
the purpose of resumption OF specie payments on
Jan. 1879 and to that end, and in execution of
the pledge of the act of 1863 provided for the
demptiun of the United States notes, and for the
issue of NaiOnal-hank notes in lieu thereof, and
thus, amid conflicting theories, declared, in e.
feet. monetary system combined of coin and
the notes to be redeemed. the amount to be pro-
yidrd for is necessarily uncertain and a. il will
depend upon events or II condition of things over
which the Secretary has little orno Jntrol.imposSi
bic for him TO determine. lie is authorized if in his
judgment deemed necessary to carry the act into
effect 10 accumulate amount of gold equal TO
the entire amount of the legal tenders OutStand-
Ing On hat day; but this. il il We're not morally
impossible. would be ineEpgdiCnt. flnan
Cial measure that il is not to be pres umed to have
been contemplated by Congress. and so not in
Cumbent on the Secretary. Still he is expected
AID required TO meet the demand of redemp-
ton by the accumulation of coin adequate in
amount, at his discretion, with no certain
data for his guidance in the exercise of It,
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 rcdcmrt on the
list OF january. 1879. As this is clearly not az
tanablc, he is left to deal with what is probab e.
dctermnable upon the condition of such general
causes will be likely to attend that event 1t
would not be difficult IN the present state of none
tary affairs TO make Il probable estimate of the
amount required if the redemption We're to take
place in January next; and it is probable that an
accumulation Of an amount of coin equal to a
moety Of the sum total Of these notes would be an
ample preparation; but. while it il to 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 .ult. 1t is however
deemed probable in any Supposable condition of
monetary Affairs that. if no iucon~iderablG reiuc-
tion OF the volume of these notes should be made
in anticipation of the redemption of 1879, 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 10 the
surplus revenues measure of redcmp-
ton, such is the present and probable fu-
lure of these revenues and the demands
upon them that it is not deemed at all probable
that any considerable sum not otherwise
appropriated could he devoted to this end In
this connection, however, it is proper to
observe that now, for the frs time in many years,
owing TO the large reduction of currency pay
mentS. the sales Of gold to obtain the equivalent
currency therefor, no longer necessary, and
thus considerable accumulation of gold may
tiHt1p
revenue.
By the act OF Jan. a. 1915, the Limitation upon
the issue of National Bank notes was repealed
and the volume of currency left TO be determined
by tie business demands of the country. The
Secretary OF the Treasury was required 10 retire,
of legal tender notes eighty per cent. of the sum
of National Bank notes then issued in excess of
SOOOOUt0. The amount of additional currency
issued since the passage OF this act Is SlSOou3oo,
and legal tender notes to the amount OF sl4, 46f,
rs have been retired.
Ey the act of June q, 1874. National Banks
might withdraw their circulation in whole or i'll
part by depOsiting lawful money with the Treas
uTer. and withdraw proportional amount OF the
bonds: and il was mad, the duty of the Secretary
TO retire legateuder notes to the extent of eighty
per cent. OF the bank-notes thereafter issued I'm
der this act So OF losal-tender notes have
been deposited i'll the Treasury. and $31 H. 90 of
bank notes, accordingly, have been redeemed and
destroyed.
Tie amount of legal-tender notes outstanding
Nov. /, 1876, was 1866 ,535. IL. The amount of
said notes on deposit for the purpose of retiring
circulation was $21,9lO94i. The amount of Ma
tonal Bank notes III circulation on that day was
S29143 464 less and of leglteuder 81 2Si less
than on Jan. IL, 1Si5-a total decrease in circGla-
lion. under the operation Of the act of SI360I7S Is.
From these facts as well as from the large nc.
foundations of money at the money centers and
the lack Of demand for it. it is apparent that the
volume of currency is largely in excess of the rea!
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
means of Maintaining the same, ii is deemed
important also II 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 as Il part of their legal money re-
serve, 50 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. il 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
should be increased to the amount of at least
000. and silver made legal-tendcr to the
amount of ten dollars in all 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
Jaw prior to April l, 1913, the position of
limited legal fender gold has for many years
past, been the money OF payment in this country.
II appears that but a comparatively small sum
in silyerdolar pieces ever coined. and that it,
at no time, constituted an apprecable part Of the
circulation. This was due TO the fact that silver
was more valuable as bullion than its stamped or
legal-tcnder 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 TO inex-
PRED coin obligations, should its coinage, with
unlimited tender be again authorized, has been
the subject of considerable discussion.
The question whether the pledged faith of the
United States to pay lis obligations in coin would
justify their payment in the silver dollar Is Of no
small importance us affecting public securities of
the United Siates. In any discussion of the ones
ton il must be conceded in the outset that the si
Yer dollar was unit of value. having the quality
OF LEGAL tender for all sums and in all cases. and
that the terms of the United States obligations do
not exclude payment therein, and that the act OF
1869, in which is the pledge OF payment in coin,
does not in terms, discriminate AGAINST silver.
These provisions are broad enough, in terms, to
include payment in either gold silver and COM
pels an inquiry into the history. production issue,
and subsequent treatment of these obligations. and
the relative condition of gold and silver coin as
money Of payment in order TO a correct interpre-
tstion of the meaning of the language payment
to be made in coin
Not long after the close of the civil war, which
gave rise to these obligations. doubts arose as 10
the kind of money in which these securities were
payable and which led 10 the passage of the act
OF 1859 entitled " An act TO strengthen the public
credit" and il was intended TO dispc all hesita-
ton or dOuht as to the purpose OF the Government
upon the question, and by which the faith OF the
United States was pledged to the payment in coin