The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-12-04
u tann .Onn. NnO OF amch

t".pi ten Ter un1i stairs notes. aud no moro.
In onclirg" 8. 'n's, s4i' h'r" hnv" of hsn ls
.Ye iog npj af r'u'atfu. nntrs. md rr" huvr |
i"t, ',lr.u"d t'r d. AMI cancelled, tl2so9.-
r6 2l T%' mi ,l e, .',' ,g.is.6 80. "''"-
r., fhr 4a.. ~ If W.! ! .ithHi, ON and |
al, ,hgl-l.l.' a'', ia''' i p, srro9 ,r
United States i'nd e mote then ouiSinnd-
n.y. RI l as, lg' II Fih@ u IN 'nSi
stb-. In tlr.tro 90 sow Yore. in sums oi not
Rss t1an so. ani.to rnlbc the 5 .rclgrJ OF
t1on,,iion MT outloril',i or required. he
n nuihorl.dt 20 my surplus revenue. from
pr"prni 4. ond I, sen, sell. and Dispose ot, AT
n",l hnnl' n' fl.. IN ',ni states i, = bed In
w." MI of Con-r,s4 approved Iul II. 1870 en-
ted An net To- giinor p, the rounding Of the
mt onni don't. Niu ike anuitrs. privileges.
carry thi- "a MO l 1T IT, md to use The pro
eecds thereof for tllr purposes aloresaid.'
Tia obrli,n to TINS provision. the Secretary
hns sold at pr. ior CON. tljUun.OOO four ana
onr-hal pr cont. l"ns. OF s1OOoQOp dnrin-
and hns sold f25.nrow 900 At pnr. in com. OF four
prr cent. bon =. Dl t5OOnuO0 Tor "ao h " the
months " AUGUST. 5 Ptcmlrr' toDer. Noyem-
81 UnO.uOO have been sold for the redemption Of
United States notes. aud the residue H. in the
Trnnsury. The surplus revenue has also, un-
der the same aut iurity been applied to the re-
dpnpion NJ the rrsiduc of Cuitrd States notes.
moi redeemed, hy the sale ~ 20 n rs above stated
anil the bnlanDe - held in tho Treasury IN prep
arntlrn for rrsumpt ON.
These operations, aided greatly. no doubt. by
the favorable condition Of our foreign COM
MERGE have advanced the market value Of
Unned States nut.s to 97's per cent. or within
nearly two and "A hall per cent. OF coin. They
have also con usvoly demonstrated the prac-
tirnbity of restoring United States notes to
pnr in coin. hy the time fixed 10y law, and that
without disturbing either domestic or foreign
tradc or commerce. Every stop has been
aompancd with growing business. with the al
vanru Of public credit and tho steady apprccia-
ton of United States notes. The export Of hul-
hpn has been arr 'st'l. and our domestic sup
piv has arcumulntrd IN the Treasury. The
expectation of other domestic products has
been largely increased. with great aIvuntaget To
all Industries Tho course adopted under the
Resumption act. ~ rrrinfs,t forth. II pursued.
will propnniy br followed with Ike lavorhhl"
resuts and sufficient fund for tho mnintrn-
an,'e Of resumption will doubtless accumulate
in tho Treasury az or before the date fixed by
law. The provision for free banking has aided
this process IVY nllhyng imaginary feurs that
would othrrwisr have been aroused by the with
trnwih Of United States notes.
The Secr'tnry cannot too strongly urge the
Hrm maintenance OF u policy that will make
good the proniis" contained IN the United states
notes when issu"d-a promise repeated in the
act " Ia strengthen the public credit" approved
March Is. 1869. and made dUinite and effective
by the Resumption act.
Dishonor''d notes. less valuable than tho coin
they promise. though justiiiod by the necessity
which od 10 their ISSUE, should be made good
~ soon as practicable. The public credit * in
Iured by failure to redeem them. Every holder
who was compelled 10y law to rr""ive them has
been deprived OF a pnrtof his just HUI. Now.
when our national resources are ample. when
tho process of appreciation is almost '.om Jlctr,
when the WIS., lom OF the existing law has be-. n
demonstrated 1t il the dictate Of good policy
and good faith to continue this process Of pre-
pnration. So tnnt at or before the time fixed by
INV every United SIats note Will have equal
purchasing power with coin. To reverse this
policy IN the IA . Of INSURED success will greatly
rmpHir the public credit arrest the process Of
reducing the inter NJ on tn" public debt. and
saiso anew tng financial distress our country
has recrntly suffered.
The Resumption a t contpmplntns the rodun-
ton ny the first day OF Janunry 1879. of N"
amount of United States notes to $500 uOO 600
by the cancellation ol such notes Ia the extent
Of ~ per cent 81 the circulation issued 10 ma
hnIal bnnks.
The amount II circulation so issued may not
b. sum 1"nl to a, conipi 81 the reduction con
templatd: m" Snrr'tiry therefore. recon.
mend. that authority be- gwen to gradually fund
fnio four per "nt. bonds uii Jutvd states notes
in excess ui i3uuuuu 80. the bonds to boz i--ucd
81 par for com or It's market equivalent in
unItrd States notes. THIS Will be in harmony
with thp declared object Of "N sting law and
viii open an eusv way 10y which the people may
invest their say ngs IA public security. Or
The redu ON o Un.t'd States notes to the max
Lnum Of $500 Om.ooo may be- accomplished If
Congress " u auiinr2e the go nag" ot the silver
dollar. 10 be- "N 'hungrd for United States notes
on the demand "i tho holder. such notes 10 be-
Existing laws 80 not clearly define whether
tni 5L. stai's NOTES, whrn rri""mei after san;
|, lS19. may 10" r. Sru"d. The first section of
enc Hsuiipu"n = PLAINLY prpvid"s Tor ih'
permanent ~ ~ tuition Of silver on for the
whole amount 81 fra hona currency outstand-
ing. Se ton PLAINLY provides tor the perma-
n"nt reduction "i United States notes to an
nfn,nnt not N'p"llut uu.Ouu.OuO. No tit-tin Z
Legislative declaration made N th" Rs-ump-
ton net that nuus redeemed aztec that limit
runched shall n. DE- rrissu"'l hut - tion 3.j13
OF mo heNisrd Siiui"so. thr uli'u stat pro-
vidrs TINT vii II any United stat notes are
remrned IL IN" Tr nsury tnry may be- rrissurd
from time to time. as the eNisenci,.s Of the pub
liz interest muy require.
The Seor"tnry II Of the opinion that. under
this section. notes. when redeemed after Jan l.
1879. II the amount puistand NJ il not IN eNress
OF 500. COOS 900. may b re--urd rs the cNi grn-
cirs Of the public servi,s may require. note
l,llE
subject To- 'ho 'nnlr law ~ Il received tor taxes.
or IA a bank note WHEN redeemed by the rorpo-
rition issuing II. The authority ~ reissue IL
dDes NOT depend upon tn" mode IA winch IT IA
returned Ia the Treasury. But TINS consru'-
ZION Is controvertri. and should b. tiled by
usuht provisions ol lhw;r IL should not De-
0prn 10 doubt or Sputr The decision Of this
question 10y Congress involves not merely the
CONSUMPTION ~ existing law. hut ~" public pol
ley Of maintilininI in circulation United states
notes. either with or without the legal trndcr
clh'lse hrse not ARE oi Er"ht puDllc conNe-
ni"ner. They ar ~ ntc readily; are OF uniNrr-
sa credit. are u l'ht OF the people without IN
nrest; ara protected by every possible safe
gnari against countrrfeiting: and. when re-
deemable in com at the demand vi the
noldgnr. form p"p,r currency a. good
ccici that certain amount can, with the
AL q nm ample reserve n coin. be always
maintained ia '' rruation. Should not the b'n'-
1T Of this rr'ulHtinn inure to the prople rather
LhHn 10 corporal ons. "ith"r Slnt' or national:
Thn Government A.s ample iarlity Tor the col
leetou, custody anil 'ar,. Of tlr com reserves Of
me country. Il - u sliur custodian Of such re-
sUrv's than % mutt tud" Ut scattered hnnks can
bh lh' authority tn ssur err uniting n"t'S hv
banks is not gwen o. them for their ben H. but
ttoI no" pun, 'nN n"n'"i AM 10 rnhDlr u"m
10 meet Nh" "hh and low Of currency ruusod iy
varying "rol =. product ons. and -rasons. II is
in'lsp n-nhir thut power should exist sonlr-
wh"r" I" issue an .onn rredlt-mOnry AT ccrinin
tlin"' uud 10 r"ir' IN It ~ others. THIS iunr-
tlDu rHu D. lrriOriie better hy corporations
than hy tho G.y rum"ut. tn" Government
cniroi innu money. ilrHl Ia bills of eNchungc. or
make advance on properly.
The r.urv ~ 1itrn~ Ia cypress the opin-
IA % 81 "a aItH ttIf