The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-18

such money Is unavoidable as during war or great
pubic calamity but II has always been the anxious
care OF statesmen to return again solid standard
OF ron. Therefore It is that specie pay mcnts, or u
specie Standard Is pressed by the great body OF intel
igent men who study these questions. as an inds,
pensabe prerequisite for steady business anu Soou
times.
Now most of you will agrce to all this and Will only
differ AS TO the mode, or and manner; out tnere
is large class OF people who believe that can oe
promise nope OF redemption; that note should 10
printed, 'rhis Is dollar, aud be made tender
MONEY TO REPRESENT COIN
regard this as q mild form Of lunacy, and have no
disposition to debate with men who indulge IN such
They have pressea 70 , some , e Sss a.
BRIEF and they have ever shared the late oil other
popular decisions. Congress wall never entertain
such proposition, and, If 1t Should We know that
the scheme would not stand moment before
the supreme Court That Court only main.
tanned the constitutionality OF the legal
tender promise to pay dollar by divided court, and
the ground that II ssuol during the war; as In
the nature OF a forced loan to DO redeemed upon the
payment oil real dollar; that rs, so many grains oi
silver or gold.
1 therefore dismiss such wild theories and speak
only TO those who are willing to assume, as an axiom
on this subject that gold and silver or coined money
have been proved by all human experience 10 DC the
best possible standards OF value and that paper money
Is simply promise TO pay such coined money, ana
should be and kept equal to coined money ny be-
ing convertible on demand.
WHEN AND now TO "nEsuME-''
Now the question Is as 10 the tme ana modo by
which this may be brought ABOUT and on TINS subject
should be dogmatic or stand without yielding
upon plan of his own, bat should DO Wiling 10 give
aud take, securing the best expedicnt that public
opinion will allow to DO adopted. Tho purpose and
obligation to bring paper money TO the standard OF
coin have been and over agaE announced by acts
OF Congress and by the platforms great political
parties OF the country. II resolutions and prom iscs
would bring about specie payments we would have
boon there long agoj but the diversity OF opinion
to the now-twelvc years alter the
close ci the war-stll leaves our paper money AZ dis
count OF Ave per cent. Until this Is removed there
will be no new enterprises involving great sums, no
active industries, but money will lie Idle aud watch
anG wait The changes that may be mace before we
reach the specie standard. In 1869 Congress pledged
tho public ath that tho United states would pay god
or SILVER dollars Tor United states notes AGAIN, III
January, 1875, after more than years debate Con-
gress declared that ny the LIST OF January 1879, the
United Statos would pay It's notes IN CON- rho Secro-
tary OF the Treasury is expressly required ~ Irepare
tor ana MAINTAIN the redemption OF all United
States notes presented at tho Treasury on and after
that date and Tor that purpose he is authorized !" use
all the surplus revenue and 70 sell bonds oil the United
States bearing four, four and hall and nve per cent
interest at par In coin.
PROVIDING AN EASY PLAN.
IL Is this law, called the Resumption act now SO
much discussed III the papers, that imposes upon tho
Office hold most difficult and important duties; aud
without replying 10 any attacks made upon me am
anxious to convey you personally what have done
and must do IN obedience 10 The provisions vi
,hs act 1t Is sad mat TIE law Is dsise'' We
law is right the machinery OF the law could easily DO
changed by Congress That resumption can be Sc
cured and ought 10 be secured under TINS law VIII
be my purpose show you, ana l shall not hesitate
TO point out such defects IN tue law as have occurred
TO me in It's execution. There are two modes Of
sumption-cither 10 diminish the amount oil notes to
be redeemed, which Is commonly called contraction
the currency by the uation OF in the
Treasury enable the Secretary TO maintain resump
on The one practical detect IN the law Is that The Sec
rotary at liberty TO sell bonds OF the United Stacs
for United States notes, but must sell them Tor com.
AS coin not in circulation among the people he is
practically prohibited IRON selling bonds 10 the peo-
pie except by an evasion OF the law or through pri-
vatc parties Bonds are 10 demand and can readily be
sold par CON- and still at par, or at pre-
MUM, IN United states notes The process OF selling
for United States notes need not go lar before the IN 70
tact that they are receivable Tor bonus would bring
them up TO par IN CON- and that is specie pay mens
REDUCING THE CURRENCY.
But the reason oil the refusal OF Congress TO grant
this authority often asked OF it, that 1t would
the currency, and this lear OF contraction mas
thus prevented Congress from granting the easiest
planest and surcst mode OF resumption. To AVOID
con traction 1t provided that national pauk noes may
issued without limit as to amount, and that, when
Issued United States notes might be retired to the ex
tent OF lilhs Of the bank notes issued This
Tie only provision for redeeming United States notes
thut Congress made or would make, and this, II WAS
supposed. would reduce the United States notes 20
$500, 100000 before January |. 1879. The &C
teal experiment only proves the folly OF
the cry had Tor more money more money
Here was tree barling. A tree ana almost unlimited
TO everybody to issue more iopey, but unlucky
Tor visionary theorists II was money that had 10 be So
cured; not wildcat money, but money that people
could sleep upon without lear Of breaking The result
that under free banking the Issue OF circulation
has been less than expected. and, therefore,,
the reduction United states notes was less sui
there was some reduction Grcenbacks have been
tired under the act Of January 1873, to this tno
to the amount OF 22,905, 700 and nearly twenty
nlno millions of circulation issued to
national banks. Since the lst OF March last the re-
duction OF United States notes has been S5,li5,26l
and This reduction was preceded by circuatioa
issued 70 banks amounting 10 near S5,oOoOoo do
say that ts Is the only reduction oil the currency
tia. has happened. but IL Is the only reduction that
made 10y The United States. The national banks,
under different law and from the very Necessity OF
free banking, are ut liberty TO retire their currency
well as to Increase It, and this has been done by thom
since the 1st Of January. 1915. to the amount Of
$36,o2i6l2 But this is reduction Effected by each
bank guided by It's own interest and the circulation
safely and pru emily maintain
NO SCARCITY OF CURRENCY.
There are now deposited with the Treasury by pri-
corporations banks and individuals, S57 10000
OF United states notes. vi this there were deposited
by the national banks at their last statement, made
June -, S44, 450, COO aud they have in tho cash
serve held by them S42, 900 than the amount
required by law, clearly showing that there Is
OF currency when demanded Tor the requirements Of
business. Since january |, 1877, the United States
has issued S3i, $50 900 OF silver coin, and mas
deemed With mat S2l,9so,O00 fractional currency.
now almost superseded by silver CON- and also holds
sS 100 500 of United States Tor redemption
Of fractional currency still Outstanding. In tins there
was no contraction, but a substitution oil coin Tor
fractional currency.
CONVERT UNITED STATES NOTES INTO BoSDs.
IT. was al error 10 make the retirement of United
States notes depend upon the issue OF bank notes.
The two mad no relation TO each other but the retire
ment OF United states notes should depend entirely
upon the amount necessary TO be witndrawn,
advance within the limited me the Residue to par in
coin, ana the simplest mode OF doing this
pleasure OF the holder the bonds 10 bear tho lowest
rate OF interest that would In ordinary tunes DC
tanned at par in gold To this The objection is
made that convert a n0n-interest bearing
note INTO an interest bearing note, and thai
is rnc, but what right have We as nation or has
any oanK, or ndividuai, 10 force nto circulation
money Its note, upon which IL pays intereslY Why
ought not any who Issues promise to p y
demand be made to pay IT when demanded pay in
tcrest thereafter? Whit right has he law justice,
TO insist upon maintaining in circulation his note
which ho refuses TO pay according TO his promise, and
winch he refuses TO receive in payment OF noie
bearing lnierestY certain amount OF ULitcd
States notes eau be- and ought to be, maintained at
par IN CON, with the ad OF moderate coin reserve
ned IN the Treasury ana the that this can
be done they form the best possible paper money, n
dcbt Oi TIE people without interest, equal value
with coin ana more convenient TO carry aud handle.
Bey ond TINS the RI hit to issue paper money, eher by
the government or by banks, is dangerous exercise
Of power injurious TO all classes ard should not con-
tInuc single day beyond the necessities that gave IL
birth.
EASY TO ACCUMULATE; COIN.
But IL Congress should proper 10 conhne the
process OF resumption TO The present law we nave
still The second mode oil rcsumpg--Dy accGmulatng
gradually, so that wnen tho time fixed Tor no.
sumption arrives the Treasury may be able redeem
such notes us are presented. la this respect the Re-
sumption act Is as iu and liberal human language
CAu H. The Secretary i authorized q