Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1877-08-24

rect business principles will bring our national
expenditures within the amount OF such moderate
taxes on whisky tobacco and beer, and reasona-
bly, moderate duty on imported goods, as, while
furnishing protection to our own Industries, VIII
not cripple our commerce or place our industries
at disadvantage in foreign competition. be-
leve the Administration Is perfectly willing TO
share with Congress In the labor OF these essential
reforms In our civil service.
Much the largest reduction in the public expend
iture has been effected In the
REDUCTION or INTEREST ON THE PUBLIC DEBT.
The great body OF the public debt Is now paya-
BILE at the pleasure Of the United States at par in
coin. As this debt now bears an interest OF per
cent. 1t is manifest that Il money can be borrowed
at less rate the old bonds can be paid of and the
reduced interest lessons to that extent the burden
Of the debt. Prior to the lst OF March my prede..
cessor had sold $jO,OO0,C00 Az per cent bonds at
par in coin. the proceeds Of which had been ap-
piled to the redemption Of per cent bonds. Since
the ist OF March there have been sold, under the
reiunding net $i35,O0O0OO AZ per cent. bonds
and that amount OF 6'per cent bonds have been
paid off or are being paid of, and cancelled, thus
saving TO the people OF the United States S2,O95-
900 In coin for this year and each year hereafter
In May last became satisfied that the credit OF
the Government was so advanced, and the money
marset was so favorable, that could sell Mt par
in coin bonds Of the United States bearing inter
est mt per cent per annum. and with the sane.
tion OF the President took the responsibility OF
withdrawing from sale $lOO,00OOO0of "a per cent
bonds and substituting per cent bonds. There
was great doubt among bankers and business men
here and In Europe OF the ability to sell these
bonds at par and had plenty Of advice not to un-
powers of the world, had recently offered her per
cent. bonds at discount OF more than 5 per cent.
Inc RUSSIAN G0yernmeht, now un9er tne stSss @
OF war, was selling its bonds at such rate that
they yielded over per cent. The Por H. uese GOV
ernment had issued II per cent loan at about %
per cent. discount. Great Britain, the highest In
credit OF all the great nations had sold her per
cent. consols at large discount, and now al
though they are perpetual annuity they are daily
quoted mt from 9i to b5 per cent Still, with the
favorable condition of the money market, with in
dustries arulyEed throughout the world, money
lying idle in great boards, with our credit unfair
nished, our nation confessedly among the lie ding
powers of the world, with great resources, be-
lieved that the public interest and public duty de-
manded that the effort to sell these per cent.
bonds should be made, and that 1t woul be sue
cessful This great national loan vas opened by
popular subscription in the United States on the
10Th of june and within thirty DAYS afterward
$67 100000 were taken in this country and $lO,-
2OO0O0 in Europe, making $17,bOOOOO sold. This
sum- wien paid and applied TO the purchase Cf D
per cent, bonds, will make an annual saving to
the people Of the United States OF 81 $4,000 The
aggregate Of the saving from both classes of
bonds since the 1st Of March, 1877, will be 50, ,5Si
600 year in coin.
We may confidently hope that, II no adverse egis-
lation shall be had that will njurOusly affect the
public credit, the entire amount Of the public debt
ing to nearly 81 7UOO0 1000 may, rs IL becomes re-
deemable be converted into bonds not exceeding 4
per cent
And now, fellowcitzens this brings me TO the
question upon which there is so much diversity of
opinion, many strange delusions, aud that is the
question Of
SPECIE PAYMENTS.
What do we mean by this phrasef Is it that we
are to have no paper money in crculatiOny If so
l am much opposed to 1t as any of you. Is 1t
that we are to retire our greenback circulation
If so, am opposed to it, and have often said so
| What mean by specie payments is simply that
paper money ought to be made equal to coin, st 6
| corn or clothing as coin. Now the importance O
this cannot be over-estimated. A deprecated
| paper money cheats and robs every man who re
cefves it of portion Of the reward of his labor OF
| production and in all times 1t has been treated
by statesmen rs one OF the greatest evils that car
| befal the people. There are times when sucl
! money is unavoidable, during war or grea
| public calamity but II has always been the anxious
! care of statesmen to return again to the solit
standard of coin. Therefore 1t is that specie pay
ments a specie standard, is pressed by the grea
| body of intelligent men who study these questions
as an Indispensable prerequisite for steady bust
| ness and good times.
Now most Of you will agree to all this and will
| only differ as to the mode, or time, and manner
but there is large class of people who believe tina
| paper can be, and ought TO be, made into none
| without any promise of hope of redemptiOn that
| note should be printed: This is dollar and b
made legal tender regard this as mild form
of unacy, and have no disposition to debate wit
| men who indulge in such deusions They hav
prevailed to some extent at different times in al
countries, but their life has been brief, and the
| have ever shared the fate of other popular delu
sions. Congress will never entertain such proI
osihon, and, If it SHOULD. we know what the schem
would not stand moment before the Suprem
Court. That court only maintained the conititu
tionaity of the legal-tender promise to pay do
lar by divided court, and on the ground that
was issued during the war, rs in the nature of
forced loan, to be redeemed upon the payment of
real dollar; that is so many grains OF silver golC
l therefore dismiss such wild theories, and spea
only to those who are willing TO assume, an ~
iom on this subject that gold and silver or coine
money, have been proven by all human eXperienC
to be the best possible standards of value and tia
paper money is simply II promise to pay coine
mOuey and should be made and kent equal [
coined money, by being convertible on demand,
Now the question arises to the time and mod
by VIII ch this may be brought about, and on thi
subject no man should be dogmatic, or stanC
without yielding upon plan OF his own, bu
should be willing to give and take, securing tn
best eSpedient that public opinion will allow to
adopted The purpose and obligation to bring OF
|, | paper money to the standard of coin have bee
over and over again announced by acts of Coz
| gress and by the platforms of the great politci
parties of thu country. If resolutions and prom
, ises would bring about specie payments we woul
, have been there long ago; but the diversity
opinion as to the mode now-twelve years afte
the close of the war-still leaves our paper none
r at a discount of per cent Until tn : is remove
there Will be no new enterprises involving grea
sums, no active industries, but money will lie i'd
/ and watch and wait the changes that ay be mad
, before we reach the specie standard.
In 1859 Congress pledged the public faith thu
the United States would pay gold or silver dollar
for the United States notes. Again, in Januar
1875 after more than years debate Congress d.
clared that by the LIST of January, 1879, the Unite
states would pay Its notes in coin. The st CretaI
of the Treasury is expressly required to prepal
for, and maintain, the redemption of all Unite
States notes presented at the Treasury on and aft
that date, and for that purpose he is authorized
use all the surplus revenue, and to sell bonds
: the United States bearing 4, 1-2 and per cen
interest at par in coin 1t is this law, called I'll
Resumption act, now so much discussed in the p;
pers, that imposes upon the office hold most diff
cult and important duties, and, without replying
any attacks made upon me, am anxious to col
vey to you, personally, what have done and mu
do in obedience TO the provisions of this act. II
SAID that the law Is defective. but, il the great o
Iect and policy OF the law is right, the machinei
of the law could easily be changed by Congress
That resumption can be secured and ought to |
secured under this law it will be my purpose
show you, and shall not hesitate to point OF
such defects in the law as have occurred to me
its execution.
There are two modes of resumption: either
diminish the amount of notes to be redeeme
which is commonly called Il contraction OF the Gu
rency, or by the accumulation of coin in the Trea
ury to enable the Secretary to maintain resum
ton. The one practical defect in the law is that Il
Secretary is not at liberty to sell bonds of II
United States for U. S. notes, but must Sc
them for coin. AS coin is not in circulatiC
among the people, he is practically prohbitt
from selling bonds to the people, except by a
evasion OF the law, or through private partie
Bonds are in demand aud can readily be sold
par in coin, and still easier at par orat premium
in U. 5. notes. The process of selling for u
notes need not 90 far before the mere fact tn
they are receivable for bonds would bring the
up to par in coin, and that is specie payments.
Dut tue reason OF tne reIusal or Congress
grant this authority often asked of it, was that
would contract the currency, and this fear of col
traction has thus far prevented Congress fro
granting the easiest, plainest and surest mode
resumption. To avoid contraction, it provide
. that National Bank notes may be issued withOI
limit as to amount, and that, when issued, u
notes might be retired to the extent of four-hftl
of the bank notes issued. This was the only pr
vision for redeeming U. s. notes that COngre
made, or would make, and this, ii was suppose
would reduce the u. s, notes to S30J,00O, 900 b
fore Jan. /, 1879. The actual experience on
proves the folly of the cry We had for more none
more money.
Here was free banking, free and almost nj
limited right to everybody to issue mors none
but, unluckiy for visionary theorists, II was none
that had TO be secured, not wildcat money, bI
money that people could sleep upon without fe,
of breaking. The result was that under FIR,
banking the issue of circulation has been far LEI
than was expected and, therefore, the reductiO
OF U. S. notes was less. still there was some r
duction.
Greenback5 have been retired under the act
January, 1875, to this time to the amount of So
9O5, 200 and near $4,000 600 If circulation wei
issued to National Banks. Since the 1st OF Mare
last the reduction of u. s. notes has been s., las
264, and this reduction was pr ceded by new ci
culation issued TO banks amounting TO
49, 10000.
do not say that this is the only reduction
the currency that has happened, but 1t is u
| only fpduction 4 Ia hv ha