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


administration ia not peddling for the green
back vote in that state, as some newspapers |
have feared.
And now, fellow-citizens, this brings me |
10 the question upon which there is SO much
diversity of opinion, SO many strange delu-
siops, and that is the question of specie
payments. What do we mean by this
phrase Is it that we are to have no paper
money in circulation If so, am as much
opposed to il as any of you. Is it that we
are to retire our greenback circulation II
so, am opposed to it, and have often said
80. What l mean by specie payments Is
simply that paper money ought to be made
equal to coin, so that, when you receive 1t,
1t will buy as much beef, corn or clothing
as coin. Now, the importance OF this can
not be overestimated. A deprecated paper
money cheats aud robs every man who re-
ceives it of portion of the reward of his
labor or production, and In all times 1t has
been treated by statesmen as one OF the
greatest evils that can bctall people.
There are times when such money is un-
avoidable, as during war or great public
calamity, but IL has always been the anxious
care of statesmen to return again to the
solid standard of coin. Therefore ii is that
bDbClb DuyLuOubs, vi bpSSiS -
pressed by the great body of intelligent
men who study these questions, as an in
dispensable prerequisite for steady business
and good times.
Now, most of you will agree to all this,
and will only differ as to the mode or time
and manner, but there is large class OF
people who believe that paper can be and
ought to be made into money without any
promise or hope of redemption, that note
should be printed, "this is dollar" and be
made legal tender. regard this es a
mild form of lunacy, and have no d'eposi-
ton to debate with men who indulge In
such illusions. They have prevailed to
some extent, at different times, in all coun-
tries, but their life has been brief, and they
have ever shared the fate of other popular
delusions. Congress will never entertain
such proposition, and if It should, we
know that the scheme would not stand
moment before the supreme court. mat
court only maintained the constitutionallty
of the legal tender promise to pay dollar
by divided court, and OF the ground that
it was Issued during the war as in the ma
ture of forced loan, TO be redeemed upon
the payment of q real dollar, that Is, 30
many grains of silver or gold. / therefore
dismiss such wild theories, and speak only
axiom on this subject that gold aud silver
or coined money have been proven by all
human experience to be the best possible
standards of value, and that paper money
is simply a promise to pay such coined
money, and should be made and kept equal
to coined money by being convertible on
demand.
If resolutions and promises would bring
about specie payments, we would have been
| there long ago, but diversity OF opinion
as to the mode, now IL years after the close
| of the war, still leaves our paper money at
discount of per cent. Until this is re-
moved there will be no new enterprises in
| volving great sums, no active industries,
| but money will be idle and watch and wait
| the changes that may be made before we
reach the specie standard. In 1869 con-
| gress pledged the public faith that the
United States would pay gold or silver dol
lars tor United States notes. Again, in
January, 1875, after more than five years
debate, congress declared that by
the first of January, 1879, the
United States weuld pay its notes
| Ia coin. The secretary of the treas
ury was expressly required TO prepare for
| and maintain the resumption of all United
States notes presented at the treasury on
4
| he is authorized to use all the surplus reve-
nue., and to sell bonds of the United States
bearing 4, 4b and per cent interest at par
in coin. II is this law, called the resump-
ton act, now so much discussed in the pa
pers, that imposes upon the office / hold
most difficult and important duties, and,
without replying to any attacks made upon
me, am anxious to convey to you person
ally what have done, and must do, in obe-
dience to the provisions of this act. 1t Is
said that the law is defective, but if the
great object and policy of the law is right,
the machinery of the law could easily be
changed by congress. That resumption can
be secured and ought to be secured under
this law, it will be my purpose TO show
you, and shall not hesitate to point oui
| such defects in the law as have occurred &c
me in Its execution.
There are two modes of resumption
either to diminish the amount of notes &c
be redeemed, which 10 commonly called
contraction Of the currency, or by the &C
emulation OF coin in the treasury to ena'
BILE the secretary to maintain resumption
The one practical defect in the law is thai
the secretary is not at liberty to sell bond'
of the United States for United Statei
notes, but must sell them for coin. AS coir
/
practically prohibited from selling bonds tC
the people except by an evasion of the Law
or through private parties. The bonds ar,
in demand and can readily be sold at pa
in coin, and still easier at par or apremi
UNI in United States notes. The process o
selling for United States notes need not g
far before the mere fact that they are re
ceivable for bonds would bring them up Il
par in coin, aud that is specie payments
But the reason of the refusal of congress t
grant this authority, often asked OF 1t, wa
that 1t would contract the currency, an(
this fear of contraction has thus far pre-
vented congress from granting the easiest
plainest and surest mode of resumption
, To avoid contraction 1t is provided that ma
tlonal bank notes may be issued withou
limit as TO amount, and that when issue,
United States notes may be retired to tn
i extent of four-ffths of the bank notes Is
sued. This was the only provision for re
deeming United States notes that congress
: made or would make, and this, 1t was SUI
posed, would reduce the United State
notes to $500, 100000 before January
1870. The actual experiment only prove
b the folly OF the cry we had for NOR
money, more money.
0 Here was free banking, free and almoI
4 unlimited right TO everybody to issue NOR
money, but, unluckilY for the vlslonar
: theorists, it was money that had to be 81
cured, not wildcat money, but money tht
4 people could sleep upon without fear G
breaking. The result was that, under fro
banking, the issue of circulation has bee
far less than was expected, and therefor
It the reduction of United States notes WI
L less. Still there was some reduction
. Greenbacks have been retired under the a
of January, 1875, to this time to the amour
y of $22, 905, 700, and near 30 millions OF CT