The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-08-18

1
one bureau of the treasury and of $72l ,266
in the customs service, together with
large saving in contracts for public build
ings, aggregating Gl 100000. The largest
reduction had, however, been made in the
reduction of interest on the public debt.
Here he explained the operations of the
treasury regarding the withdrawal of bonds
at high rate of interest and substituting
others at a lower rate until the last issue of
four per cents, and said this process Of saw
| iyg had Just commenced. We may conf
IDENTIFY hope that IL no adverse legislation be
had that it will not injuriously affect the
public credit, the entire amount of public
debt bearing interest at over four per cent,
now amounting to nearly 81, 700, 900, 900,
may as it becomes redeemable be converted
into bonds not to exceed four per cent.
And now, fellow citizens, this brings me
to the question upon which there ia 80
much diversity of opinion, so many strong
delusions, and that is the question of
specie payments. What 1 mean by specie
payments is simply that paper money ought
to be made equal to coin, so that when you
receive it it will buy as much beef, corn or
clothing as COIN There is large class of
people who believe paper can and ought to
be made into money without any promise
or hope of redemption that a note should
be printed "This is q dollar" and be made
legal tender. l regard this mild form Of
lunacy, and have no disposition to debate
with men who entertain such proposition,
and if it should be known that the scheme
would not stand before the supreme
court. therefore dismiss such wild theo-
ries and speak only TO those who are will
ing to assume as an axiom on this subject
that gold and silver, or coined money, have
been proven by all human experience to
be the best possible standards of value and
that paper money is simply promise to
pay such coined money, and should be
made and kept equal to coined money by
being convertible on demand. In 1869
congress pledged the public faith that the
United States would pay gold or silver dol
|
January 1875, after years debate con-
gress declared that by the 1st of January
1879 the United States would pay lts notes
in coin. The secretary of the treasury is
expressly required to prepare for and msin-
tain the redemption of all United States
notes presented at the treasury on and af-
ter that date for that purpose he is
: authorized to use all surplus revenue
AID to sell bonds of the United States,
gearing four, four and half and
+ nve per cent. interest at par In coin. 1t is
this law called the resumption act, now so
much discussed in the papers, that imposes
upon the Office l hold the most difficult
? and important duties. That resumption can
be secured and ought to be secured under
this law, it will be my purpose to show you,
and shall not hesitate to point out such
defects in the law as have occurred to me
in its execution. There are two modes oi
resumption. Either to deminish the amount
Of notes to be redeemed, which is com
monty called contraction of the currency
or by the accumulation of coin In the
treasury to enable the secretary to maintain
= resumption. One practical defect in the
law is that the secretary is not at liberty
10 sell bonds of the United States fol
United States notes, but must sell them fo
= coin. As coin is not in circulation among
a the pnl.'e he is practically prohibited from
selii,g unds to the people except by al
q evasion of ,ne law or through private par
\ ties. Bonds are in demand and can b.
q readily sold at par in coin, and still easie
at par or at premium in United State
q notes. The process of selling for Unite'
y States notes need not go far before tn
4 mere fact that they are receivable TO
q bonds would bring them up to par in coli
; and that is specie payment.
!, But the reason of the re fusal of congres
!, to grant this authority often asked of it wa
# that it would contract the currency, an
ir this fear of contraction has thus far pre-
ID vented congress from granting the easiest
1t plainest and surest mode of resumption
'r To avoid contraction it provided that nj
l. tional bank notes may be issued withou
limit as to amount, and that when issue
" United States notes might be retired to tn
AT extent of four-fifths of the bank note
in issued. This was the only provision fc
,e redeemipg United States notes that cor
,e gress made or would make, and this, 1t va
e. supposed, would reduce United State
O. notes to $500, 100000 before January
as 1870.
ne The actual experiment only proves ii
Mt folly OF fallacy, the cry we had for " mol
st money, more money" Here was FRI
lg banking, free and almost unlimited right I
m everybody to issue more more money, b,
40 -unluckily for visionary theorists-it WI
gs money thst had 10 be secured, not wilt
Vn cat money, but money that people cou
Y. sleep upon without fear of breaking
Y. The result was that under free banking Il
er issue Of circulation has been far less thf
ts was expected and therefore the reductiC
IT, of United States notes was less. Still the
he was some reduction. IL was an error
I'D make the retirement of United States not
Ie- depend upon the issue of bank notes. TT
CO two had no relation to each other but Il
of retirement of United States not
nd should depend entirely upon the amou
ed necessary to be withdrawn to advan,
or within limited time the residl
he to par in coin, and the simplest mode
of doing this was to authorize their conversit
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