The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-05-14
Making a total OF.

besides. s............... 35,OOO,OOO
Making total OF. 600, 900 600
Under repeal Of resumption the
available volume OF circulating me-
dium would be on the 1st day OF Jan
uary, 1879, 1866, ,000, 900, and gold
necessarily advanced in premium,
while simply amending the resumption
act as proposed by your committee
would give the country then as its
available volume of circulating me-
dium, composed OF gold, silver and
currency at equivalent volue with gold,
total Of 1890, 900, 900.
The quickest and doubtless the sur
est way TO bring about an increase of
the circulating medium equal TO the
wants Of the people and ample TO i'm
part life to the now PROSTATE energies
| OF the nation aud to restore CONNER
cial confidence TO every avenue of in
dustry and trade is to provide for such
increase as the pending amendment
will; and. as auxiliary, for the further
advance in value of United States
notes, and to place them at par with
gold at the earliest practicable mo-
ment.
This desideratum is sought by tho
measure proposed by your committee.
One feature looks at once to this
The exchange at par, as it provides, of
these notes for 4 per cent. bonds which
are purchasable only in coin and are
to-day in market above par in coin will
Immediately advance their Value
These notes then reissued in retiring
bonds bearing five and six per cent. in
terest will lessen to that extent the in
terest-bearing obligations of the ma
tion and measurably strengthen the
public credit. The amount OF 4 per
cent. bonds authorized is ten millions.
The amount already sold IL less than
one hundred millions, leaving still
issuable over nine hundred millions. -
Funding a like amount of ten hundred
millions equally of aud per cent.
outstanding bonds into these four per-
cents will be a saving to the Govern
ment Of fifteen millions OF interest an
nually. Besides, the per cent. bonds,
taken at home and in denominations OF
$50 and multiples, will not only enter
into current exchanges, but enrich
rather than impoverish the nation to
the extent OF the accruing interest
paid to our own people instead OF TO
holders abroad. This desirable object
will be hastened by making these
bonds exchangeable for United States
notes, for their sale is less rapid in
coin. This process of exchange will
quicken as soon IA the right is given,
and the authorized issue OF these
bonds ere long be exhausted. 1t will
become the peoples loan to the Gov
ernment, and be 30 popular that author
ity for additional issues will be de-
manded until our own people, instead
Of foreigners, shall hold the public
debt and the interest wholly be drawn
at homo rather than shared abroad.
The late sale OF fifty millions OF ~
per cent. bonds by the Secretary Of the
Treasury at a premium OF II per cent.
in gold, with accrued interest, is an as
surance OF this as we'll as evidence OF
an advancing public credit. The re-
markable financial condition Of France,
so recently emerging from a disastrous
ly exhaustive war, is largely attributed
TO her public debt being held 10y her
own people. A measure which pro-
vides for the exchangoabilitY of non
interest bearing obligations OF the
Government upholds the volue OF the
one and strengthens the holders OF the
other. This feature Of the amendment
proposed must commend itself 10 gen.
eral support.
may now consider the second fsa-
ture OF tho amendment, that United
States notes shall. on and after the lst
oi October next, be receivable for du-
ties on imports. BY the act approved
February 25. 1862, it was provided
"that all duties on imported goods
shall be paid in coin or in notes paya-
bic on demand heretofore authorized
to be issued, ''and 10y law receivable in
payment Of public dues" These notos
referred 10 were Treasury notes paya-
bic on demand 10 the amount Of sixty
millions, issued and made receivable in
payment Of public dues under the acts
approved July II and August 3, 1851,
and February II, 1862. 1t was a fatal
mistake that the policy Of receiving
United States notes was not continued
under subsequent statutes, that the
country might have escaped the misfor-
tunes which have followed its denial.
1t was, however, the judgment OF our
lawmakers in the midst OF civil war,
when eleven States in rebellion threat
ened the dismemberment OF the Union
aud the national credit, as a conse-
auence, had suffered so that our bonds
were negotiBted with difficulty, that il
was essential to assure their interest
paid in coin to induce capitalists TO
| take them, and this was done by re-
curing duties TO be paid in coin and
by making subsequent issues OF United
States notes non-receivable for that
purpose. Sixteen years Of unAinching
adherence TO this statutory pledge has
witnessed United States bonds gradual
ly rise from ffty-hye cents TO one hun
dred and eight, tho market value Of
six per cents. to-day.
The original creditors OF the nation,
who staked their capital on the issue
OF fricidal war, have been well paid for
the faith they placed in the final
triumph OF Just cause. They loaned
their money TO the imperiled Govern
ment with low credit; they gather their
reward OF large premiums from an i'm
pregnable nation with high credit. :
With bonds at n premium Of per
cent. and United States notes but three
eighths OF one per cent below gold,
where is n man so fastidious as TO fur
ther insist that payment OF customs
due in gold is longer necessary 10
maintain the public faith. Our obi
cations to holders abroad having ceas-
| ed, duly 10 citizens at home requires
that the Government they peuled and
sacrificed life 10 perpetuate shall now
turn its attention TO upholding it's cred
il with its own people. The Govern
ment should now provide for receiving
for all public purposes what it obliges
individuals 10 take for all private trans
actions. While gold was al large
premium, nearly IL not quite equal 10
that on bonds, there was force in the
argument that there should be some
certain, reliable source of supply 10
the public debt; for without IL the
Government might find itself embar-
rassed 10 meet express obligations but
with United States notes nearly equal
10 gold the argument falls and the dis
parity should end. The people have
been willing To bear with patient fidel-
ity a discrimination against themselves
for the public faith, but they will nc
longer brook a discriminating burden
when ID antagonizes the public welfare.
The plea, moreover, cannot he urged
that IL customs dues are not paid In
coin the Government will be compelled
to buy at disadvantage in open market
10 provide for coin obligations. AZ
what disadvantage, then, / aski The
competition in market OF thousands ol
\ - 4