The daily gazette., 1878-06-18

for payment of interest on the public
debt, is not in the way, because we can
pay that interest from other sources.
1t is the same argument precisely that
was made here against the remonetiza-
ton Of silver. The rights of creditors
were brought in and sought to be placed
between the people of the country and
the right to regulate their financial af-
fairs in their own way. The people have
right to pay the interest on the public
debt, If they pay it according to their
contract, in their own way; and that to
make greenbacks receivable for import
duties will enhance their value to par
with gold, | have seen no one except
the honorable chairman of the Finance
Committee and the honorable Senator
from Delaware who doubts it. If we
make the legal tender notes of the
United States receivable at the custom
house, the margin between that paper
and gold and silver will disappear. II
we repeal the resumption law five or six
millions of currency and of the coin, now
boarded in the Treasury and in the bank
vaults to prepare for the day of resump-
ton, will be liberated, will be added to
the circulation of the country, and the
whole country will at once feel its bene-
ii cial effect.
L regard the repeal of the resumption
law ,is the great desideratum now for
the relief of the distress of the country
| have twice upon this floor declared
myself, and given the reasons for it, in
favor of its repeal; and the earnest feel
ing that l have on the subject, feeling
aroused by the deep distress of the
country, is the only consideration that
could have induced me to say another
word on the subject.
Mr.. HEREFORD. My friend from
Ohio urges as an objection that there is
no Affirmative legislation in this House
bill; that it simply repeals existing law.
That is all true but if we repeal the ex-
istlng law and do nothing more we shall
have accomplished great deal. We
were told by the Secretary of the Trea-
sury in his interview with the Finance
Committee, weeks and weeks ago, that
the national banks held in reserve on that
day 220,000,000 of legal tenders and
natibnal-bank paper, which was eighty
odd million more than the law required
them to have and why are they holding
lit?
They are preparing for resumption on
the first day of January, 1879. Repeal the
act so that they may know that they will
not have to resume on the 1st day ofJann-
ary 1879, and that immense reserve of
$50, Doc, 200, or it may be said now, $780,
600 over what the law requires may go
out of their vaults into circulation, and
all the millions that are to-day in the
Treasury of the United States, held there
for resumption purposes, may also be
used for the pur pose of buying up D per
cent. and 6 per cent. bonds, and that
money also be thrown into circulation.
Although we have over 00,O00,000 of
legal-tenders and national bank paper
issued, we have only, as shown us in that
interview by the Secretary of the Trea-
sury about $3.50 100000 of legal-tenders
and national bank paper, all told actually
in circulation. That is the trouble of the
country to-day. If this resumption act
continue in force the banks will continue
TO increase the reserve, so that by the lst
day of January, instread of $220 ,000, ,00O
being held in reserve by the banks, they
will have certainly $500 100000. This
money day after day is now being with
drawn from circulation.
Hence l say that l hope every friend
of the bill to repeal the resumption act
will vote down all amendments, pass the
bill to repeal the resumption act as it
came from the House, ,andthen take up the
other bill to make the legal-tenders re-
! ceitable in payment of impost duties,
and pass that, Then gold, silver, and
greenbacks, all will be on a par, and all
| of This money held in the National Trea-
sury at the other end of the Avenue, all
these millions held in all the national
banks to-day will 90 into circulation and
we shall have again the good times thai
we have had heretofore. Then we shall
be relieved from the financial paralysis
| that is now pervading this whole country
and not till then.
NIr. FERRY. Yes, if we have the votes
and if we can get the floor and can get
| the measure before the Senate. L con
cur with what has been said by the Sena-
| tor from Ohio. Here are two positive
ideas that the friends of this bill have
been trying to frame into law. One is the
| reGeivability of greenbanks for per
cent. bonds at par with coin and the
other is the receivability of greenbacks
| for custom duties. l have been, with the
Senator from Ohio, ready at any time to
have that as a part of the legislation OF
| the country. 1t seems to me we have the
proposition simple and pure before the
Senate without the amendment proposed
| by the Senator from Indiana, MIR. Nc,
Donald. He suggests an advance ol
time from October until July. 1 suggest
| to the Senator from Indiana that such a
proposition we may lose some S30.OOO,OOt
| of gold to the Treasury. 1t is a mere
question of three months time. The
greater, overshadowing question is oi
| far more value, whether we can perma
ndntly resume. The thirty million more
in the Treasury may accomplish that
when if we are deprived of that amount
by fixing the date in July we may defeat
tile resumption of specie payments.
Mr.. HILL said When we have stop
ped contraction, and responded in botl
these measures to the demands of thu
people, as think, let us make this cur
rency what it ought always to have been
receivable in the payment of public dues
saving to the Government, "You shal
not refuse your own money in the pay
nlent of your dues" That itself is dis
credit upon it. Remove that discredii
and 1 believe that the paper money will
become at once equal to gold and silver
believe resumption will becom perfec'
tly practicable, because nine men out o
ten in this country will prefer this cur
rency to gold. believe owing to the
additional fact that when man has T
greenback legal-tender bill or bank bill
in his pocket and starts off to get COLI
for it and remembers that he may gel
silver instead of gold, he will not go but
he will keep his paper money. Wher
the money is at par, when our paper cur
rency is the equal in purchasing power
to com, that is practical resumption, and
that is what the people want Then
think gold will come into circulation, ,ant
the wisdom of the remarks of the Sena
TOR from Delaware Mr. Bayard) will b'
made manifest the country will have