The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1878-12-06

restore coin and bullion when Withdrawn III
process of redemption. The notes, when redeemed.
must necessarily accumulate In the treasury until
their superior and convenience for circulation
enables the department to exchange them ut par Tor
coin or bullion.
The act OF May 81, 1878. already referred TO, pro
vides that when United States notes are redeemed
or received in the treasury under any law. from
any source whatever, and shall belong 10 the
United States. they shall not be retired, Cancelled,
or destroyed. but shall be ressued and paid out
again and kept in circulation.
The power TO reissue United States notes was
conferred by section 3,519, Revised Statutes. aud
was not limited by the Resumption act. As this;
however was questioned, Congress wisely removed
the doubt.
Notes redeemed are like other notes received into
the treasury. Payments of them can be made only
in consequence OF appropriations made by law, or
for the purpose of bullion, or Tor the reIuhuihs Oh
the public debt.
The current receipts from revenue Sufficient 10
meet the current expenditures as well as the accru
ing interest the public debt. Authority Is con
ferred by the Retunding act 10 redeem q per cent
bonds as they become redeemable, by the proceeds
OF the sale of bonds bearing lower rate OF inter
est, The United States notes redeemed under the
Resumption act are therefore. the principal means
provided for the purchase OF bullion or coin with
which to maintain resumption. but should only be
paid out when they can be used to replace an equa
amount of coin Withdrawn from the resumption
fund. They may, il is true he used for current
purposes like other money but when SO used their
place is filled by money received from taxes or
other sources of revenue.
In daily business, no distinction need he MADE
between moneys from whatever source received,
but they may properly be applied 10 any OF the
purposes authorized by law. No doubt coin labil-
tiles. such interest or principal OF the pubic
debt will be ordinarily paid and willingly received
in United States notes, but, when demanded such
payments will be made in coin: and United States
notes and coin will be used in the purchase of bu
lion. This method has already been adopte" IN
Colorado ard North Carolina. and arrangements
are being perfected to purchase bullion IN tlis way
in all the mining regions of the United States.
BY the act approved June :, ISIS, the Secretary OF
the Treasury is authorized to constitute any super
intendent of mint or assayer OF any assay once
an Assistant Treasurer OF the United States to re-
ceive gold coin bullion on depoSN "f5y the
Legislative Appropriation bill. approved July u.
1878 the Secretary of the Treasury is authorized 70
issue coin certificates in payment to depostors or
bullion at the several minis and assay offices ot the
United States These provisions. intendedto secure
TO the producers of bullion more speedy payment.
will necessarily bring into the minis and treasury
the great body of the precious metals mined IN the
United States and will tend greatly 10 the easy ana
steady supply of bullion for coinage United states
notes when at par with COIN will be readily re
ceived for bullion instead OF coin certificates, ana
with great advantage and convenience to the pro
ducers.
deposits of coin in the treasury will. no doubt.
continue 10 be made after the LIST of January, as
heretofore. Both gold and silver coin, from ITS
weight and bulk will naturally seek such saie
deposit while notes redeemabe in coin. from their
superior convenience, will be circulated ias cad.
After resumption. the distinction between coin and
United States notes should be. as far rs prac
ticaDe. abandoned III tnc current dHdlIS ~ 'h'
Government: and, therefore. 10 coin certlhcates
should be issued except where expressly required
by the provisions of law, as in the case
OF silver certificates. The gold certificates
hitherto issued by virtue OF the discretion con-
ferred upon the Secretary will not be issued alter
the LIST of January next. The necessity Tor them
during suspension of specie payments is obvious.
but no longer exists when by law every United
States note is in effect coin certificate. The only
purpose that could be subseved by thcirissue here
after would be TO enable persons 20 convert their
moi coin certificates. and thus contract the
currency and hoard gold in the vaults OF the treas
ury without the inconvenience or risk of its GUS
tody. For convenience United States notes or the
same denomination as the larger Din certihcates
will be issued
Bv existing law customs duties and the interest
of the public debt payable IN coin. and por-
ton of the duties was specifically pledged as a
special fund tor the payment OF tie interest mus
making one provision dependent upon the other.
As we cannot. with due regard to the public honor,
repeal the obligation to pay COIN we ought not to
impair or repeal the means provided 10 procure
coin. When. happily. our notes are equal 70 com,
they will be accepted as coin. both by TIE publc
creditor and by the Government but this accept
ance should he left 10 the option Of the respective
parties and the legal right on both sides 10 demand
coin should be preserved inyiolate.
The Secretary Is of the opinion that change Of
the law is not necessary to authorize this depart
ment to receive United States notes tor customs
duties on and after the 1st day OF January. lS'9,
while they are rodccmablo and are redeemed on de
mand in coin. After resumption IL would seem a
useless Inconvenience to require payment OF such
duties in coin rather than IN United States
notes The Resumption act. by clear implication.
far modihes previous laws as to permit pay
ments in United States notes as wei as III coin.
The provision for coin payment was made in the
midst of war wien the notes We're deprecated and
the public necessities required ~ assured revenue
in coin to support the public credit. This alone
justified the refusal by the Government 10 take
its own notes for the taxes levied by it, 1t
has now definitely assumed to pay these notes in
coin and THIS necessarily implies the receipt of
these notes coin. 70 refuse them j. only % in
vite their presentation Tor coin. Any other con
strncton would require the notes to be presented
80 the Assistant Ircgsur'r in New York Tor coin.
and II used in the purchase of bonds. t. bC returned
70 the same officer. or. III used Tor te payment of
customs duties 90 be carried "a the Collector Of
Customs who must daily deposit IL the treasury
al money received by him. IL il NOT g. be assumed
that the law requires this indirect and inconvcnicnt
process after The notes are rcjccmablc III coin on
demand of the holder. They are then at parity
with coin, and both should be received nGiscrinl-
iu3tely.
II United States notes are received for duties at
the port az Sew York. thcy should De received for
tAe same purpose IN all other ports OF the Unit al
States or ana Unconstitutional preference would lie
given n that port over other ports. II this priv
ilco is denied 10 The citizens OF other ports they
could make such use of these notes only by trans
porting them 10 New York and Transporting the
coin t. thcir homes for payment: and all tlis. not
Mt only without benefit 10 The Government. but
with loss ia returning the coin again 20 New York.
..l,"re il is required tor = NuFtion purposes.
The provision in the law for redemption in New
York believed to be practical redemption in all
parts OF the United States. Actual redemption was
confined to a single place from the necessity OF
maintaining only one coin reserve aud where the
coin could be easily accumulated and kept.
With this view of the Resumption act the Secre-
tary will feel il to be his duty, unless Congress
otherwise provides to direct tina. after the LIST day
of January next, and while United States notes
redeemed at the treasury they be received the same
as coin by the officers of this department in all
| payments in all parts of the United States.
IL any further provision of law is deemed neces-
sary by Congress to authorize the receipt of United
States notes for customs dues for bonds. the
Secretary respectfully submits that this authority
should continue only while the notes are redeemed
in coin. However desirable continuous resumption
may be, and however confident may feel in its
maintenance. yet the experience of many nations
has proven that it may be impossible in periods OF
great emergency. In such events the public faith
demands that the customs duties shall be collected
in coin and paid to the public creditors. and this
pledge should never he violated or our ability t.
perform II endangered.
The tendency of late among commercial nations II
TO the adoption of single standard OF gold and thu
issue Of silver for fractional coin. We may. by
ignoring this tendency, give temporarily Increased
value to the stores of silver held i'm Germany and
France until market absorbs them. but by
adopting q silver standard nearly equal TO gold
as practicable we make a market for our large pro
duction of silver and furnish full, honest dollar
that will be boarded transported, or circulated
without disparagement or rcproach.
n is respectfully submitted that the United
states already largely interested in trade will
all parts OF the world, and becoming. by its popu
/ lation wealth. commerce and productions leadinG
member Of the family Of nations. should not adop