The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1877-08-23

icy of the law is right, the machinery OF the
law could easily be changed by Congress-
That resumption can be secured and ought to
be secured. under the law, it viii be my pur-
pose to show you and | shall not hesitate to
point out such defects in the law as have oc-
Cured to me in it's execution.
There are two modes of resumption either
to diminish the amount of notes to be redeemed,
which is commonly called contraction of the
currency: or, bv the accumulation of coin in
the Treasury. to enable the Secretary to main
tain resumption The one practical defect in
the law is, that the Secretary is not at lib
erty to sell bonds Of the United States
for United States notes, but must sell
them for coin. AS coin is not in circulation
among the people, he is practically prohibited
from selling bonds to the people, except by an
evasion of the law, or through private parties.
Bonds are in demand and can readily be sold
at par i'll coin and still easier at par or at
premium, in United States notes. The process
of selling for q lited States notes need not go
far before the mere fact that they are receiv-
able for bonds ould bring them up to par in
coin, aud that is specie payments
But the reason of the refusal Of Congress TO
grant this authority, often asked of it, was,
that it would contract the currency; and this
fear of contraction has thus far prevented Con-
gress from granting the easiest, plainest, and
surest mode of resumption. To avoid contrac
ton, il provided that national-bank notes may
be issued without limit as to amount, and that.
when issued, United States notes might be re-
tired to the extent of four-hfths of the bank
notes issued. This was the only provision for
redeeming United States notes that Congress
made or would make; and this, it was supposed,
would reduce the United States notes to $780,
900, 600 before Jan. /, 1879. The actual ex-
pertinent only proves the folly of the cry we
had for more nnOneV. more n1On0V.
Here was free banking a free and almost IN
limited right to everybody to issue more money,
but, unluckily for visionary theorists, it
was money that had to be secured-not wildcat
money, but money that people could sleep upon
without fear of breaking. The result was, that,
under free banking, the issue of circulation
has been far less than was expected, and,
therefore, the reduction of United States notes
was less. Still there was some reduction.
Greenbacks have been retired, under the act
of January, 1875, to this time, to the amount of
1922. 905, 700, and near $29,000,000 of circu-
latiOn were issued TO national banks.
Since the LIST of March last, the reduction of
United States notes has been SIS, 145, 1854 and
this reduction was preceded by new circulation
issued to banks, amounting to near $6, 500, 000
do not say that this is the only reduction of
the currency that has happened, but it is the
only reduction that was made by the United
law, and from the very necessity of free bank
ing, are at liberty to retire their currency as well
as increase it (; and this has been done by them,
since the LIST of January, 1875, to the amount of
1886, 624 ,612. But this is reduction effected
by each bank, guided by its own interest, and
the circulation it can safely and prudently
There are Aow deposited with the treasury,
by private corporations, banks, and individu-
81 TToi4 G4o+o
there were deposited by the national banks, at
their last statement made June o. $544, $50, 900;
and they have in the cash reserve held by them
$42, 500, 600 more than the amount required by
showing that there is no want of
when demanded for the requirements
of business.
Since Jan. l. 1877, the United States has is
sued 1884, 236, 900 of silver coin, and has re-
deemed with that $21 $780, 900 fractional cur
rency, now almost superseded by silver coin;
and also holds So, 100, 1858 of United States
notes for the redemption of fractional cur
rency still outstanding. In this there was no
but substitution of coin for frac-
GOnal currency.
1t was an error to make the retirement of
United States notes depend upon the issue of
bank notes. The two had no relation to each
other; but the retirement of United States
notes should depend entirely upon the amount
10 D0 WlGQufAWu TO ADVANCE WlCQln
the limited time the residue to par in coin; and
5he simplest mode of doing this was to author
re their conversion into bonds at the pleasure
Of the holder, the bonds to bear the lowest
rate Of interest that would in ordinary times be
at par in gold. To this the obiec-
ton is made. that we convert nOn-interest-
bearing note into an Understanding note; but
what right have we as a nation, or has any
bank, or individual, to force into circulation as
re iotaT
Why ought not any one who issues promise
to pay on demand be made to pay when de-
manded, or pay interest thereafter? What
right has he, in law or Justice, to insist
upon maintaining in circulation his note
which he refuses to pay according to his prom
Use, and which he refuses to receive in payment
of a note bearing interest? A certain amount
Of United States notes can be, and ought to be,
maintained at par in coin, with the aid of a
moderate coin reserve held in the treasury
and, to the extent that this can be done, they
form the best possible paper money! debt of
the people without interest, of equal value with
coin, and more convenient to carry and handle.
Beyond this, the right to issue paper money,
either by the Government or by banks, is
dangerous exercise of power, injurious to all
classes, and should not continue single day
beyond the necessities that gave it birth.
But, if Congress should see proper to con-
law, we have still the second mode of resum-
ing by accommodating coin gradually, SO that,
when the time fixed for resumption arrives, the
may be able to redeem such notes as
are presented. In this respect the Resumption
act is as full and liberal as human language
can frame it. The Secretary is authorized to
prepare for resumption, and for that purpose
to use the surplus revenue, and sell either of
the three classes of bonds, all of which are now
at or above par in coin. The power can be,
ought to be, and will be, executed if not re-
pealed.
This accumulation, both of silver and gold,
can be made by arresting from expectation our
own production Of these metals. This is more
than sufficient to supply our wants for this
purpose and, fortunately, we have plenty of
other productions cotton wheat and
fabrics, the fruit of our industry-for export
This country is the greatest producer of gold
and silver in the world. The balance of foreign
trade is in our favor. During the last fiscal
year our exports exceeded our imports in gold
value the sum of $3.50, 555, 855, and this balance
is steadily increasing. 1 a~
This year, Providence has blessed us with an
enormous crop Of almost every production of
the farm or plantation, and the foreign de-
mand is largely increased by the Russian war.