Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-12-06

I HTVTUT
Of ut not less than par. IN coin, either of the de
scrptons Of bonds of the United States prescribed
10 the act of Congress. approved July IA, lS,o,
entitled An act to authorize the refunding OF the
national debt with like qualities, privileges, and
exemptions, to the extent necessary To carry tuls
act INTO full effect, aud to the proceeds there
1 Of for the purposes aforesaid" 10 obedience to
this provision, the Secretary has sold at par, for
coin, Sl5, 0000 900 IL per cent. bonds, OF S0OOo-
900 during each OF the months of May, june and
July last and has sold S25 600 600 at par in com,
OF per cent. bonds, or $4,000 600 ior each OF the
mouths of August September, October, November
! and December. OF the coin thus received, VI UUo-
900 have b. en- sold for the redemption OF Cnited
States notes. aud the residue Is IN the treasury
The surplus revenue has also, under the same au-
tbOiiy, been applied TO the redemption OF Tue res
ilue of United STATES notes, not redeemed by the
sale of coin a. above stated, and tue balance =
held in the Treasury in preparation for resump-
uon. These operations, aided greatly, no doubt,
by the favorable condition of our foreign com
merce have advanced the market value OF United
states notes to 81 3-S per cent, or within realh
, ! per cent. Of coin. They have also cohclu-
sively demonstrate the practicabllty of restoring
United States notes to par ~ CON, by the time
fixed by law, and that without disturbing either
domestic foreign commerce. Every step mas
teen accompanied with growing business, with
the adyaGce of public credit, and the steady APP
probation OF UGited States notes. The export OF
bullion has been arrested, and our domestic sup
| ply has accumulated IN the Treasury. The eX-
| pcltAtion of other domestic products has been
| largely increased, with great advantage to all n-
| dustries. The course adopted under the Resump-
ton act, herein set forth, If pursued, viii prob
ably be followed with like favorable re- ults, and
sufficient fund for the maintenance OF resumption
| viii doubtless accumulate IN the Treasury at oI
| before the date fixed By law. The provision for
| free banking has aided this process by allan ing
| imaginary fears that would otherwise have been
aroused bv the withdrawal OF United states notes
! The Secretary cannot too strongly Hrge the I'll III
| m nj tai n "A
promise contained IA the United States notes when
issued, promise repeated in the act "to strengthen
| the public credit, approved March 49, 1853, and
made definite and effective by the Resumption act.
| D.houoiod notes, less valuable than the com they
| promise though justified by the necessity which
| led to their issue, should be made good as soon
| as practicable.
The public credit is injured byfsure to redeem
| them Every holder wno was compelled by law
to receive them ha, been deprived OF part OF ms
Just due Now, when our national resources are
ample when the process of appreciation IS almost
| comp lete, when the wisdom of the existing law
mas been demonstrated, it is the dictate OF good
policy aud good faith 10 continue this process OF
preparations so that at or before the time fixed by
law every United States note VIII have equal pur-
| chasing power with coin. To reverse tins policy
in the face of assured success will greatly impair
the pub lie credit, arrest the process of reducing
| the interest on the public debt, and cause anew
the fiuanc a distress country has recently SUI
| fcred. The Resumption act contcmplates the re
duction by The first day OF January, 1879, OF the
| amount of United States notes to $500 900 900,
| by the cancellation of such notes 10 the extent OF
so per cent OF the circulation issued to the nation
al banks. The amount OF circulation 50 lssutd
may not be sufficient to accomplish the reduction
contemplated; the Secretary therefore, recon-
mends that authority be given to gradually fund
into four per cent. bonds all United States notes
in excess of $500 900 900, the bonds to be Issued
at par for COIN or lis market equivalent in nted
States notes.
| This will be in harmony with the declared oh
ject of existing law. and will open an easy way by
| which the people may invest their savings III
public security. Or the reduction of United
States notes to the maximum of 100000 900 may
| be accomplished if Congress will authorize the
coinage of the silver dollar to be exchanged for
United Stotes notes on the demand of the holder,
such notes to be retired and Cancelled Existing
laws do not clearly define whether United States
| notes, when redeemed after Jan. |, 1879, may be
re-issued. The first section Of the resumption act
plainly provides for the whole amount OF fraction
| al currency outstanding. Section plainly pro-
vides for the pei manen reduction OF nited States
| notes to amount not exceeding S3OO, 1000.
No distinct legislative declaration Is made IN the
T, sumption act that notes redeemed after that lmit
is reached shall not be issued bat sec. 90 OF
the revised statutes of the nited States, provides
that "wnen any United States notes are returned
To the Treasury they may be re-issued, from time
to time, as the exgencies of the public interest
may require" The Secretary Is OF the opinion
| that, ulutf TINS eeCllOD, notes, WHtu INucCutu
after the lst of January 1879, if the amount out
standing is not in OF 100000 900. may be
Ie-ssued as the exlgencies OF the public service
may rtqaire. note redeemed with coin Is II |
the Treasury and subject to the same law If re-
ceived for taxes, OF as IA bank-note when redeemed
by the corporation issuing it. The authority TO
| reissue it does not depend upon the mode IN |
which it is returned to the Treasury. But this |
construction is cont ovelted, and should be settled
by distinct provisions of law. 1t should not lie |
IN a he Hart~l oft bi.
question by Congress involves not merely the con- |
struction OF existing law, bat the public policy OF
maintaining in circulation United States notes.
either with or without the legal tender clause
These notes are of "a eat public COMPLEMENTARY |
circulate readily, are OF universal credit, are a
debt OF the people without interest are protected |
by every possible safeguard against counterfeuDg,
aud, when redeemable in coin at the demand of
the holder, form paper currency as good rs has |
yet been devised. 1t is conceded that n certain
amount with the aid of ample reserve in
coin. be always maintained in circulation. Should |
not the benefit OF this circulation inure to the !
people. rather than TO corporations, either State
or nstional 7 The government has amp lie facility |
for the collection, custody, and care of the Cou |
reserves of the country. 1t is safer custodian of
such reserve than a multitude Of scattered banks
can be. The authority to issue circulating notes
by banks is not given TO them tor their benefit,
but for the public convenience and to enable them
TO meet the ebb and How of currency caused by
varying crops, productions, and seasons. Is is in-
dispensable that power should exist some where y
to issue and loan credit money at certain times,
and to redeem it at Others. This function can he
performed better by corporations than by the gov .
ernment. The government cannot loan money!
deal IN bills Of exchange, make advances on |
property The Secretary ventures to express the |
opinion that the best currency for the people of !
the L nled States would be carefully limited |
| amount Of nited States notes. promptly redeema- |
BILE on presentation in coin, and supported by !
ample reserves of coin, and supplemented by a |
system of national banks, organized under gen /
eral laws, free aud open to ALL with power to issue
circulating notes secured by United States bonds |
| deposited with the government. and redeemahle |
on demand in United States notes or coin. Such |
system will secure to the people safe currency
of equal value in all parts of the country reccva-
BILE for all dues. and easily convertible into coin
Interest thus be saved on so much of the
| public debt as can be conveniently maintained in
permanent circulation leaving to national banks
| the proper business OF ssch corporations of pro-
viding currency for the varying changes, the ebb
and flow of trade. The legal tender quality given
| TO L nited States notes intended to maintain
them in forced circulation, at time when their
! depreciation was inevitable. When they are re-
deemable in coin this quality may either be with
drawn or retained without affecting their use as
| currency in ordinary times. But all experience
has shown that there are periods when, under any
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