The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-12-06

and the suhstitution therefor Of national bank
currency, the equivalent OF money by its con-
Yeftiuility into coin on demand. The popular
favor with which this enactment was hailed,
looking to the contamination OF an eN2rnt
measure OF publiC necessity, WAS modified onlv
ny ~ aprehcnsion ~ the p ssiblo mad q1ncY
Of its terms TO accomplish It's end A return to
TIE constitutional standard OF values at any
time will doubtless, o. soUe extent, involve
reduction in nominal prices and consequent
conir lctlon Of the volume ~ currency, but this
IA not ~ itself necessa rily an evil, and. N II
were. II Is an evil incident to vicious system.
not cured by the continuance Of the evil. white
the me sure itself II demanded bv the highest
economic considerations and principles of hon
est dealing among men. Besides, the troubles
likely to grow out Of enforced re-umutiun are
believed % he greatly exaggerated. Restora-
ton Of the constitutional standard of values by
7, sumption, and the extinction " irredcemable
notes current as money, and the enfOf cement II
payment in coin on demand. OF the rational
bank notes treated "a the equivalent of money,
s eaton 9OV S~d public s necessity nS.ops se V ss
pensioR was the act Of the national
government, and to the national Government
the people properly look to take the initiative
in resumption. Having. under Its authority to
coin money, assumed to regulate the currency
" the country, aud "a the states ARE inhibited
"tO make anything but gold and silver coin a
tender In payment OF debts and IA irredccm-
able and inc0nvertble paper currency Is essen
TALLY rcpugnant to the principles of the Consti-
tuition and the traditional policy OF the American
people, IT. Is obviously incumbent on the Gov
standard Of valucs Of the Constitution, and to
enforce the obligation Of payment in coin ON
demand. ut the option Of the holder. or all paper
money. Now, a. for long time heretoforc it
has been, n large proportion OF the national cur
rency. az prescribed by the Government Of the
United states, Is ALIKE irredeemablc, incOnvert-
ible, and deprecated paper money; but II has
been enforced IA substitute for the money Of
the Constitution-coin.T The United States notes.
commonly known a. legal tender. regarded a
sub.titute for money, are an anomaly in our
monetary syatcm, tolerable aud possible only ia
the eNigenclcs of civil war-the offspring of its
perls and limited ~ its necessities. To allow
their continuance, as SUCH after the cause which
the conditions Of their Inception. and to sane
ton what was only tolerable as a necessity, by
impressng upon II the stamp of legitimacy.
LEGALrrNDER NOTES.
The purport Of the legal-tender note was and Is
promise to pay ITS legal Characteristic has
been definitely settled by the Supreme Court.
Justice Bradley, In speaking Of IL. says:
Itirnot an attempt TO coin money out OF valuolcss
erai Ike the coinage Of leather or IVORY or kowrle
oc@s py ne 's Ss pay 2 so sse The
ard Of value y not CHANGED, Tue Government Simply
ey nuoc ana 9riyate creditor. during he pending ext
g,ncy No one supposes taAi these Govern,
spece pay menis Is never 70 RETURN And 4 mst,ersnot
In what form they are Issued. Through what.
ever chang they pass their ultimate destiny is 70 b
pad
Dealing with this question Senator Sherman,
Chairman OF the Committee ON Finance, In "A re-
cent speech in the Senate says:
mighi show you, from the eontemnoraneous debates
were r,sarded as temporary an IN the nature OF
forced loan, ou loan clccrfuy borne, and to he re-
taen cues Toned either ne policy the duly or The obj
CON.
These notes did not and do not purport to be
money-they are rather the symbolic eXpression
OF tho Governments authority In its extremity
- supply its ne9ss The quality OF legal tender
with which they were impressed should have
been coexistent only with the necessities Of
which they were the offspring. Having served
their end, they existed properly only rs evidence
of Government Indebtedness, to he provided for
rs other debt obligations. Indeed this was the
logic and the law of the legal-tender notes In
their inception and treatment as Interpreted by
the provisions Of the act bv which issued by the
provision Of law for their payment IA part
of the public debt. and 10y the judgment Of the
supreme Court Of the United States. At the
close ~ the war they were II portion Of the pub
lie debt, and they are constituent element in
our currency to-day only because the original
provisions for their funding have not been en-
forced, and that lancifuland speculative theories
have proposed their permanent incorporation
into our monetary system AS not Incompatible
with the hard money Of the Constitution and
the hard money tradit lions of our people. That
policy which tolerated the continuance Of
these notes IA money after the close
of tho war must be regarded as "A
public misfortune. At that time they were.
Jvcurling 10 original design and by the logic,
OF their existence, to he funded ~ an uhlipnt ion
81 indebtedness be embodied with the pub
lie debt. and not To- be treated or toeratc cd u
element of the national currency. They were
to pass out Of the category Of currency. and to
take their place with the public debt. Congress
debt, and pledged the faith Of the nation to
their redemption M such at the earliest prac-
a.
their REDEMPTION in January. ls7g
by this latter act the policy of speedy resump-
ton al specie hyments II not only declared. but
a monetary system tor the United states clearly
Indicated, with provisions Tor the redemption -
irredccmahle paper current n money, and the
issue In Leu thereof Of national hnne notes re
doemahle In coin, At the option of the holder.
and a return 10y that method To the metallic
standard OF the Constitution.
II remains only to consider the adequacy Of
the provisions Of the measure for resumption in
1879 to accomplish Its object.
PROVISIONS FOR RESUMPTION.
As a further provision deemed essential 10 the
purpose Of resumption, IL IL recommended that.
IN addition to the authority of the secretary of
the Treasury already conferred. to provide for
redemption of lega-tender notes on and after
the day provided for resumption, 10y the accumu-
laton of an adequate amount of gold To- meet
the volume OF S3.uup.pD OF lcea-tender notes,
which IL then be outstanding, hV the sale Of
United states bonds. authority be given him
from time 10 time, "a lie may deem cNpedent
and the state Of the finances admit. To fund these
notes into "a bond bearing 81 rate of Interest not
moro than e.. per cent. with not less than thirty
yctrs to run, with such limitations a. Ia the
amount to Ice 70 funded Ia any given period a.
Congress, in its discretion. may determine.
sudden accumulation of gold ia amounts
ruh.ol~nt 10 meet 80 large demand a. that
contemplated IN January. $50. t. deemed i'm
practicable; while To accumulate in advance 81
mat time would be attended with necessary
l"ss OF Interest, would hc Likely To- disturb
money exchange and cmharraSs the fGudiag If
our national SECURITIES. The present time Is re-
saiuVu as "ppoi'nhe Tor Inc kladudl wlthdNN al
OF these notes. Ii l. believed thcy would not
he greatly missed from thC circulating med iuu.
~ thclr place VIII readily Ice supplied 10y the H.
sue ui national hanK notes under iiiS act.
The act of January II. lssd entitled An act
TO provide Tor the reAuuitinn OF spccic paN .
ments,' As methods Of its accomplishment, re-
quires the redemption of the outstanding frac-
tonal currency IN SILVER coin; the increase Of the
Nulimo of gold coin by chtHpeniug the coinage
Of gold bullion; the substitution, a~ the business
demands OF the country may require of ational
bans notes for the lcgd-teudrr notes 81 the
United states In excess Of s.sI,vIWD; and the
ultimate redemption IT the entire legu-tondcr