The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1877-08-31


bonds would bring them up TO par in coin,
and that Is specie payments.
/ But the reason Of the refusal Of Cor
gress TO grant this authority, often asked
o. &, was that it Woul6 contrSeI the cur
rency, and the fear o. contraction has
thus far prevented Congress from grant
ing the easiest, plainest and Surest mode
Of resumption. To avoid contraction, IL
provided that National Bank notes must
be issued without limit as to amount. and
that when issued, United States notes
might be retired 20 the extent OF four
dfths OF the bank notes issued. This was
the only pfoyiAlon- for redeemine United
States moi e. that Congress n sde or would
make, and this, Il Is supposed, would re-
duce the United States notes to $500, 600,
QUO before January /, 1879. The actual
experiment only proves the folly Of the
cry we had for more money, more money.
HERE WAS FREE BANKING.
Gree 6d amost nnIimited right % eV.
IerVDody - iAsue more 1noney, but uEiueky
FOR Visionary tIeofists ie was money that
had 70 be secured, not wild cat money,
but money that people could sleep upon
without fear OF breaking. The result was
that under free banking the issue OF cir
eulation has been far less than was ex-
pected, 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 81, 905, 100, and near 80, OOO,-
600 were issued to National Banks.
Since the LIST or March last the reduc-
tIon OF United States notes has been 3d.
l45, 20l, and this reduction was preceded
by the circulation issued to banks, amount
Ing to near $500 O6O. ~
| n 90 not say that tnIs Is the only ro1uc-
ton OF the currency that has happened,
but IL IL the only reduction that was made
by the United States. The National Banks,
under q different law, and from the very
necessity OF free banking, are at liberty TO
retire their currency as well as 70 increase
It, and this has been done by them since
the LIST OF January, 1875, TO the amount Of
$36.92i,012 But this is q reduction effect
ed 10y each bank, guided by Its own in
terest, and the circulation IL can safely
and prudently maintain.
There are now deposited with the treas
ury by private corporations, banks and
individuals, sol, no. 900 OF United States
notes. or this there was deposited by the
National Banks at their last statement,
made June %, $44, 100000 and they have
In the cash reserve held by them $42, 60O,-
900 more than the amount required by
law, clearly showing that there Is no want
OF currency when demanded for the re-
quirements OF business.
II Since January 1, 1877, the United States
has issued $34 ,236, 600 OF silver coin, and
has redeemed with that S2I, 9S0, 900 frae-
tOnal currency, now almost superseded
by silver coin, and also holds %, 100, 1853 Of
O1lIe4 6b3b68 uOSo3 LOT LLi6 Ic0eIDpItOu o.
fractional currency Btlll outstanding. In
this there was no contraction, but q SUBJ
stitutIon OF coin for fractional currency.
1t was an error to make the retirement
OF United states notes depend upon the
issues Of bank notes The two had nc
relation TO each other, but the retirement
OF United States notes should depend en-
tirely upon the amount necessary to be
withdrawn, TO advance within the limited
time the residue TO par in coin, and the
simplest mode OF doing this was q
authorize
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 maintained al
par In gold. To this the objection 10 made
that we convert non-interest bearing
note Into an interest bearing note, and
that Is true, but what right have we as q
nation, or has any bank or individual, "a
force into circulation as money its note,
upon which 1t pays no INTEREST," Why
Ought not any one who issues q promise
demanded or pay interest thereafter
What right has be, In law or justice, to
insist upon maintaining in circulation his
note, when he refuses TO pay according to
his promise, and which he refuses to re-
ceiVe in payment OF \ note bearing inter-
est? 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 FcScEVe 0clu In the LTeHSurys anu 10
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 is
4 sue ps per money, either by the govern
ment or by banks, is q dangerous exercise
of power, injurious to all classes, and
should not continue q single day beyond
the Necessities that gave Il birth. 81
But, II Congress should see proper to
4 contne the process OF resumption to the
4 present law, we have still
i THE SECOND MODE
OF resumIng, by accommodating coin grad
uAllY, so that when the time fixed for re-
sumption arrives, the Treasury may be
able to redeem such notes as are present
ed. 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, aud for that pur-
pose to use the surplus revenue and sell
either OF the three classes or bonds, all Of
which are now at or above par in coin
The power can be, ought to be, and will
be executed, n not repealej.
Il The accumulation, both OF silver and
4 gold, can be made by arresting from
expectation our own production OF these
metals. This Il more than sufficient to
i supply our wants for this purpose, and,
Fortunately, we have plenty OF other pro .
ductions, corn, cotton, wheat and fabrics,
the fruit or our industry, for export.
This country ts the greatest producer Of
gold and silver in the world. The bal
ance OF foreign trade Is In our favor.
II During the last fiscal year our exports
Il exceeded our imports Ia gold value the
sum OF $I66, 555, $40 and this balance Is in
i ereaslng steadily.
This year providence has blessed US
with an enormous crop OF almost every
production OF the farm or plantation. and
the foreign demand Is largely Increased
by the Russian war, Russia Is our great
cOmpetitor an supplying Europe with
bread, aud she now will consume her
own products. We have now reached
the coin hasIs In the production OF conn.,
modities for the foreign market.
OUR EXPLORATION OF HONS FABRICS
has increased and 10 increasing, and we
are now competing with Manchester and
Birmingham in the sale OF products that
have made those cities famous through
out the world. -vaaFq -
! Our Imanufactnres OF cotton, Irnh and
wool now rival In foreign markets the
oldest countries of Europe.
j We have during the i've months OF
President Hayes term made an actual ac-
cumulatiOn OF currency. and OF gold and
silver coin and bullion, Of $44 $40, 49,.
From the LIST OF May to this time we have
added 70 our coin reserve so, 600 900 by
the sale OF bonds, without disturbing the
money markets and with gold steadily on
the decline. We have reduced the pub
lie debt, since the list Ell March, the sum
OF 81, Al, S24. We have conducted the
vast operations OF our loans, already re-
ferred to, without disturbing the course
OF trade or causing shipment in gold.
All the fears expressed so often in the pa.
pers, at these movements, have been prov
en- TO be grOundless.
i We are now within ave degrees OF the
specie standard. We have still seven
teen months before US In which to COM
plete the task. The same progress that
has been made since the 1st Of March,
continued twelve months longer, will
certainly bring us to the specie standard.
feel confident in saying 20 you this day
j that, IL undisturbed, with or without >
II change OF the law, every dollar OF United
States notes will, before the time fixed
for resumption, buy IS much as an equal
amount OF gold and silver. 3ti1 q 7sH
4 CONSTRUCTION or THE RKsUlGPFEoN
Il ACT @-i
has always been pressed upon the de-
partment that, II correct. would make IL
still more easy to carry II into execution.
1t is insisted that the Secretary has the
power, In preparing for resumption, 70
cell bonds for coin, and then to sell the
coin for United States notes, to be hoard
al m ian fnu