The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-09
DOLLARS AND CENTS.
G. Edward Atkinscn'S Address to the Boston
Free Trade Club.
RESUMPTION OF SPECIE PAYMENTS
The Power with President Hayes
to Resume in 1879.
BosroS. March S. 1877

Mr. Edward Atkinson, the distinguished writer on
finance Of this city and gentleman who has probably
given more thoughtful attention 10 American finances
thsn almost any in the country. delivered an IN
portant and interesting address before the Boston
FREQ Trade Club this evening. His speech was, IN
brief suggestive argument looking TO general and
sarly resumption OF specie payments with the least
possible interference with the business OF the country,
and the ideas which be clearly and deliberately ad-
vanced will undoubtedly attract tho attention and
caselul consideration OF tho entire business com
munity. The subject upon which Mr. Atkinson dis
courses is indeed so timely that l submit full re-
pon fer the HERALD
rnE ISSUE LEGAL TENDER NOTES
Mr. Atkinson, in the beginning OF his argument
Ella bcd that, matter Of fact as well as oil Jaw u
lies in the power OF the xecutivo to restore the specie
standard value at once in such manner as to receive
the hearty and support OF tho solvent business
community. IL Is not intended to say that specific
late can fixed which the business OF the country
,halI bo on specie basis but the Executive can re-
move the only obstacle thereto that it shall be abso
utely certain that specie payment viii presently re-
establish itself uudcr normal action OF the laws OF
trade II is quite important TO make this distinction
between restoring the specie standard and rc-estab
lish!pgspccc very plain II lies In the power
OF tho Executive the specie standard by an
act which will bring the United States notes to par In
gold specie payments VIII follow because 1t Is tho
normal and profitable condition. The work OF tho
government is very simple. 1t obstructed specie
pa men BY forcing the legal tender note INTO use;
can now withdraw the obstacle by 10 use those
uoies in its work, and by giving all persons who
10 not wish to the notes the opportunity to sur
render them II thus restore the specie standard,
and then specie payment will take care OF ITSELF, but
! ia C exact dar will determine itself.
COMMON SENSE BUSINESS.
In tho consideration oil this question Mr. Atkinson
remarked THAI no not lawyer and no therefore
OF the provisions OF the statutes, and
claimed 10 apply common sense and business principles
10 determining the intent and meaning OF the statutes
In regard TO thu, legal tender notes. respectfully SUBJ
hitting that IL even there may be some provisions in
The statutes p scd since The enactment of the Legal
Tender acts which might, by very rigid consruc-
ton. be construed adversely TO the method that he
now proposes, Vt VIII be tit to give weight TO the
original provisions of the ginal acts
of tho contract between the government and tho
holders OF nes, and. therefore, sim binding upon
the executive departments. Each OF me three Legal
fender authorized issue United States
aud, by proviso enforced their use a. lawful money
Ia OF Fchn uary 70, 1852 1t rs stipulated that
she notes then sSded may be redeemed or funded IN
bvc-wcnty per cent bonds ana the only provision
Tor a reissue any OF tho notes is limited not only to
which the 'eXgeDcics oil the public interest
may require, but otherwise. The sole provision for
my OF these notes IN tho act OF February -
1867. Is ioows:-"A such United Staea notes
shall be received the same coin, at their par value
IN payment OF any loans that may be hereafter sold or
negotiated by the etary OF the Treasury and may
be from time To time US the exgcncics OF the
public interest may squire" or this $50 600. 900 of
notes authorized February IS, 1862 II therefore follows
that ONLY such notes may DC reissucd shall nave
been paid in for bonds and even that reissue is
limited 10 ''the cxilp;ncy OF tho public interest"
II IL should DO alleged that a preceding clause
IN the proyiso, whereby these notes are made
''awiul money and legal tender in payment OF ali
debts, pubic and prrvaae, within tho United states.
.s.,s
warrants The continued use OF these notes as lawful
money by the Secretary OF the Treasury, and that
therefore tho reissue follows matter OF course, II
may be answered that the proviso was necessary to
force gna issue OF the notes, and in order that
the government might a'sa'n the real purpose OF the
iisei, which was to borrow the commodities and
needed tho conduct OF tue war This clause
necessary TO the paramount purpose OF making
"A forced loan, ana asidered at the time tenn
Lorary measure. IL was therefore, wise provision
10 add the clause permitting reissue Of the notes
funded under conditions only but IN the inter-
val between sessions Congress In the absence Of
any lawful method OF resszing note which had been
paid In for taxes the Treasury might have been en-
barrassed. hence the authority 10 reissue those
verted into bonds
THE RETssuED NOTE
Mr.. Atkinson then considered at some length tho
question Of ls a reissued note legal tender Z" and
says that its reissue is unlawful and unwarranted by
the terms of the original act, and quotes some OF
the provisions OF the act Of 1923, and then makes
the inquiry
now TO RENDER THE EXISTING NOTES PAR WITH GOLD.
1t may well be here indicated that under the National
Banking act bank notes be used III liquidation OF
taxes we'll as United States notes. and II the order
should be issued TO morrow that every United States
note paid into the Treasury for taxes should be deemed
ncus otio ana not be relssued IL does not follow there
would be necessary contraction of The currency every
man would choose whether not TO pay his taxes
bank notes Uulted StaGes notes. But 1t would OF
necessity ensue that this very fact OF order issuing
10 retain and cancel would tendency 10
withhold the United states notes IRON the Treasury
the part OF banks TO strengthen their reserves and
the part oil individuals who might wish To avail them
selvcs OF the present discount upon them IN the pay
ment OF debts. With such boarding or withholding OF
United States notes Tor such special uses would they
not appreciate In value and speedily come 10 parS
Furthermore, such order OF the Executive not 10
Issue a United states note would be the absolute
that their cnd had come and such order
could not be inlericrcd with or countcrmanded even
by Congress ITSELF slnoe the only statute by which 1t
could be reached would be by an act authorizing or
ordering new issue oil legal tender notes. might not
the existing notes come to par In gold coins
POWER EXECUTIVE
Bot with regard to the provisions OF the three
original under which these issued aud
before proceed TO the consideration of SUBSEQUENT
nc,s permit me suggest that there is still furtner
power granted to tue Executive which Is OF the
sence OF the original contract and rnrepcaled Al
though was attem pied to lake from the holders of
the notes issued under the acts oil 1862 the option
convert them into hv-twenty six per cent bonds the
option still lies with / be Executive to receive them:
the law provides that 'sucn United states notes snail
be received the same As coin, at their par value,
payment Of any oars that may be hereafter sold or
negotiated by the Secretary OF The Treasury aud
although several statutes have been passed orbiddng
the secretary OF The Treasury to 90 tho
positive act Of retiring anu cancclng them, yet
the original provision authorizing him TO do
the act OF receiving them mas not been repealed.
1t would follow THAI II ne receives them when
voluntarily presented by tho holders for the purchase
OF bonds he may Doa reissue tbcm because tho ext
ecDcy of the public interest as shown does not
quire IT, the accruIng In gold com and bank
notes being thar sufficient for all demands upon
The government. Moreover, these provisions by
which the people may surrender these notes
are. OF the essence of tho contracr, ana as
Tho Supreme Court has already decided that
the constsites n ract dollar IN
coin, and any citizen has the right to the
United States In The Court OF Claims upon any
tract, may IL be possible Tor n cliizcn
not only to onforc9 the payment Of the notes In
coined dollars de nand by such SUIT, but also to
enforce all other provisions OF The original contract
andcr which they issued, Notwithstanding the
attempt Congress TO impair that contract by SUISSE
quent acts, which, IN met worked reputation OF
tart Of a provsu which proviso as "a whole may be
held to DO one and ndivigibe?
so UNITED sTAT7ss NOTE SHOULD DE REissuED.
The present time market by supcrabundancc Of
oil the things men est, drink ana wear or use III any