Evening star. [volume] (Washington, D.C.) 1854-1972, 1877-12-03


pro, rfst tons to be reduced at least sII 90 900
De ow the estimates submitted above-a re-
duction that, in the opinion of The Secretary,
of the public service. REDUCTION In public
expenditures cannot be secured merely by a
r'ductlon OF appropriations. 1t must be &C
conn anied by a careful revision of the laws
which fix the salary aud number OF en-
ployes; by reduction of the amount ex-
pended on public works now in progress; by
pcstponement OF all new works not indispeO-
sable for the public service; and by judicious
scrutiny of disbursements. The rapid sp-
Lreciation of our current money 10 the coin
standard should he accom- panied by dImin-
ished expenses in the public service.
EUNDISG. ETC.
Under this ht ad the report says that what
eVfr policy the government may adopt, al
lot reduce the value OF the coin IN waich It
rays its obiisati5ns below that ii demanded
and received. The Secretary earnestly urges
Congress TO give its sanction TO tnis ASSN
ance. AT time when we are enjoying such
credit, and rapidly securing the benefit o. IL
by the reduction of the rate of interest from
SIX - four per cent, IL would seem to be a
sIievOus error To Taise a question about the
coin III which the interest is payable. s II
lntS rest alone, without respect 10 pride in
public credit, would lead us to secure so
great n benefit as would be the saving OF
ore tnfTd OF the interest of the public debt
OF the six per cent loans about $500 OO1 OOD are
now redeemable at the pleasure of the Uai-
ted states, and of the whole debt 81 40. OlO.-
0OO are Tedeemable before, or on the Is, of
May, ISL. By the reduction of the interest,
from SIX TO 1 per cent, on the public debt
now redeemable. there would be saving OF
Sl3 200 600 annually, and by the reduction t q
four per cent. of the interest on the total ds0t,
red6emable by the lst of May, ISL, there
would be saving OF S22,006 ,20j.50 per ar
mum. Any measure that creates distruS' or
doubt Will arrest this process, and, by diSS-
bling the UEiIed States from Borrowing,
Will compel the continued payment OF the
high rate Of SIX per cent
If, therefore, the public Interests demand
THE ISSUE OF SILVER DOLLARS,
II Is respectfully submitted 20 Congress that
an express exception he made requiring that
gold coin alone shall be paid ioF principal or
Interest on bonds issued 20 public creditors
since February Il, 1873, the amount OF hich
Is SJf2 800 200. An assurance given by Con-
gresS of the payment of outstanding bO0dS in
gold coin would at once secure the complete
success OF the refund1ng process aud greatly
advance the present high credit of the Uni
ted States The operations for the
RESUMPTION OF SPECIE PAYMENTS,
aided greatly, no doubt, by the favorable
condition of our foreign commerce, have adj
vanced the market value of United States
notes Ia 81 per cent, or within nearly
21s per cent. in coin. They have also cOuclu.
slvely demonstrated the practicaoiiity of
restoring United States notes 10 par, in coin,
by the time fixed by law, and that without
disturbing either domestic or foreign trade
or commerce Every step has been accom-
panied with growing business, with the adj.
vance OF public credit, and the steady appre-
citation OF United States notes. Toe export
OF bullion has been arrested, and our domes-
TIC supply has accumulated in the Treasury.
The expectation of other domestic products
has been largely increased, with great aI-
vaEtSge TO ali Industries. Tue course alOpt-
ed under the resumption act, as herein SET
forth, If pursued, will probably be followed
with IKE favorable results, and a sufficient
fund for the maintenance of RESUMPTION will
doubtless accumulate in the Treasury at or
before the date fixed by law. The provision
for free banking has aided this process by
allay ing imaginary fears that would Other
wise have been aroused by the withdrawal
of United states notes. The Secretary can
not tC0 Strongly urge the firm maintenance
OF policy that viii make good the promise
contained in the United States notes when
l,>n-d-a promise repeated in the act ito
strengbthen the public credit" approved
March Is, 1859, and made dedni te aud efTec<
II e by the resumption act.
IiShODOTed notes, less valuable than the
coin thy promise, though justiGed by the
n ce>>llS Which leu 10 their issue, should Be
made good as soon as practicable. The pub
Tic credit is injured by faiIaTe To redeem
them. Every holder VINO was cOTnpeI,ei by
law to receive them has eeen deprived Of a
pITt OF his just due. Now, when our natio ial
resources are ample. when the process of ap-
Preclatlon l. almost complete. when the
wisdom OF the existing law mas been demon
stsaLCt. IL Is the dictate Of good policy and
SCC1 faith to continue this process of prepa-
"a ION, so that at or before the time liked by
law every United States note will have eqdal
purchasing power with coin. To reverse
this policy ia the face of assured success
Will greatly impair the public credit, ares
the process OF reducing the Interest on the
public debt, and cause anew the financial
distress our country has recently suffered.
The resumption act cOntempiates the re-
ductlOn by the first day OF January, $50 o.
the amount of United States notes to $500.
coo 600, by the cancellation of such notes u
the extent of 90 per cent. of the circulation
sued 10 national banks.
The amount OF circulation so iSSueI NAV
not be sufficient to accomplish the reduction
contemplated; the Secretary, therefore, re
com meUds tnat authority be given to grad
ually fund 10 four per cent. bonds all
United States notes in excess OF $500, 900 600
the bonds 10 be issued at par for coin or its
market equivalent; in United States notes.
Or the reduction of United States notes to
the maximum OF 500, CC0, 600 may be accom-
pllshed If Congress will authorize the coin
age Of the silver dollar, to be excha ngei for
United States notes on the demand of the
holcerJ such notes 10 be retired and can
celled.
The Secretary is Of the opinion that notes.
when redeemed after the lst of January, 1873.
II the amount outstanding is not in excess of
$500, 10000, may be Iessued as the exgan-
cies of the public service may require. The
decision OF this question by Congress in
wolves not merely the construction of exist
ing law, but the public policy of maintain
ing In circulation United States notes, either
with or without the legal-tender clause.
Tine Secretary ventures to express the opin-
ion. that the best currency for tue people OF
the United States would be a carefully lin.
tied amount of United States notes, prompt
Iy reOeeIndDle on presentation In com, and
supported by ample reserves of coin, and
supplemented by system OF national banks,
organized under general Jaws, free and open
to all, with power TO issue circulating notes
secured by United States bonds deposited
with the Government, and redeemaole on
demand in United States notes or cola. Such
a system will secure to the people safe eur.
1ency of equal value in all paris of the coun-
try, receivable for ali due, and easily con
verti BILE into coin. Interest can thus be
saved on so much of the public debt as can be
maintained in permanent cir
culatiOn, leaving 10 national banks the pro
per business of such corporations, OF pro
viding currency for the varying changes,
the 6bb and flow of trade
THE NUMBER OF NATIONAL BANKS
in existence on the first day of November
last was $50. The amount of their circuat.
ing rotes retired within the year prior To No
vember l, 1SI1, is so, 6S1 637. The amouutof
circulating notes issued to national banks
during tine same period is SO 800 $50. The
aggregate amount of their circulation out
Standing is S3l6, 115, Ill. Their loans aud dis
counts amount to 1856, 243 .29O17. The Score
tary Is of the opinion that they can be, under
existing law, and ought TO be, made the
agents of the government in the sale of bonds,
upon conditions that will make IL for their
interest to promote such sales, and will be
safe and advantageous to the government.
IN REGARD TO SAVINGS BANKS
II. &C., "a. IL. 4