The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-08-20

qulred by law, clearly showing that there
is no want of currency when demanded for
the requirements OF business. Since Janu-
airy l, 1877, the United States has issued
$34 ,236, 900 Of silver coin and redeemed
with that 1921, $50, 900 fractional currency,
also holds IS, 160,85S of United States
notes for the redemption of fractional cur
rency still outstanding. In this there was
no contraction but a substitution of coin
for fractional currency.
1t was an error to make the retirement Of |
United States notes depend upon the issue
of the bank notes. The two had no rela- |
ton to each other, but the retirement Of |
United States notes should depend entirely |
upon the amount necessary to be withdrawn |
to advance, within limited time, the resi- |
due to par In coin, and the simplest mode |
of doing this was to authorizes their con-
version into bonds at the pleasure of the |
holder, the bonds to bear the lowest rate of |
interest that would, in ordinary times, be |
maintained at par In gold. To this the OBJ |
lection Is made that we convert a non-in- |
terest-beariug note into an intereSt-bearing
note, and that is true, but what right have
we, as a nation, or has any bank or indi-
vidual, to force into circulation as money Its
note upon which 1t pays no interest," Why
ought not any one who issues
promise to pay on demand be made
to pay it when demanded or to pay
interest thereafter? What right has
he in law or Justice to insist upon MAIN
tanning in circulation his note which he re-
fuses to pay according to his promise, and
which he refuses to receive in payment of
q 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 moderate coin reserve held in the trea-
sury, and to the extent that this can be
done they form the best possible paper
money, debt of the people without inter-
est of equal value with coin and more con-
venient to carry and handle. Beyond this
the right to issue paper money, either by
the government or by banks, is danger
GUS exercise of power, injurious to all
classes, and should not continue a single
day beyond the necessities that gave il
birth.
But If congress should sec proper 10 con-
fine the process of resumption to the pres
ent law, we have still the second mode OF
resuming by accommodating coin gradually,
so that, when the time fixed for resump-
ton arrives, the treasury 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
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 exercised IL
not repealed This accumulation, both of
silver and gold, can be made by arresting
from expectation our own production of
these metals. There is more than sufficient
to supply our wants for this purpose, and
fortunately we have plenty Of other pro-
| ductions-corn, 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 $780,
| 555, 1856, and this balance is steadily increas-
ing. This year Providence has blessed us
with an enormous crop of almost every
production of farm or plantation, and the
foreign demand is largely increased by the
Russian war. Russia Is our great competi-
tor in supplying Europe with bread, and
she now will consume her own products.
| We have now reached the coin basis in the
| production of commodities for the foreign
market. Our expectation Of home fabrics
| haa increased and 10 Incl casing, ana we
are now competing with Manchester and
Birmingham in the sale of the products
that have made those cities famous through
out the world. Our manufacturers of cot
ton, iron and wool now rival In the foreign
markets the oldest countries Of Europe.
We have, during the five months of Presi-
dent Hayes, made an actual accumulation
of currency, and of rold and silver coin
and bullion, of $44, $40, 1872. From the 1st
OF May to this time We have added to our
coin reserve 800 900 by the sale Of
bonds, without disturbing the money mar
ket, and with gold steadily on the decline.
We have reduced the public debt since the
1st of March $29,44l,S24. We have con-
Quoted the vast operations of our loans, al
ready referred to, without disturbing the
course of trade or causing a shipment in
gold. All the fears expressed so often in
the papers at these movements have been
proven to be groundless.
We are now within Ave degrees of the
specie standard. We have still II months
before us in which to complete the task.
The same progress that has been made
since the first of March continued twelve
months longer will certainly bring us to the
specie standard. / feel confident in say
ing to you this day that, IL undisturbsd,
with or without change of the law, every
dollar of United States notes will, at the
time fixed for resumption, bring as much
as an equal amount in either gold or silver.
A construction of the resumption act
has often been pressed upon the depart.
ment that, If correct, would make it still
more easy to carry 1t into execution. 1t ia
insisted that the secretary has the power in
preparing for resumption to sell bonds for
coin, and then to sell coin for United
States notes to be boarded in preparation
for resumption. The department has moi
acted upon any such construction, hut hal
sold gold only in the current course of bus.
supplanted for national bank notes. II
this power is exercised it should only be In
pursuance of the plain will OF congress
, and, In the execution Of 30 delicate duty
no power should be used except such as II
clearly given. The act of April, 1875, fol
, the redemption of fractional currency pro
: vides that silver coin may be issued in ex
, change for United States notes, and suct
notes shall be kept as q special fund for the
redemption of fractional currency. Thi
, fund and the ordinary currency balance II
the treasury is the only paper money of IL
/ own. The coin and legal tenders deposited
> In the treasury are the property of privat
? individuals, over which the treasury has nj
control.
t l have, fellow citizens, l hope withou
{ wearisome detail, gone over some points OF
G this question of resumption. II is dull
q but important topic, which affects you
3 daily life, upon which my official dut,
5 compels me to act, and assure you that
have only acted upon the clearst conviction
1 of public interest. A currency of Unite
t States notes based upon the public credit
: always convertible into coin, and so limit