National Republican., 1878-12-03

place from the necessity OF maint tanning only
one coin reserve aud where the coin could be
easily accumulated and kept.
With this view Of the resumption act tho
| Secretary will feel II 10 bo his duty, unless
| Congress otherwise provides, TO direct that
| after tho 1st day Of January next and while
| United States notes are redeemed at the Trca-
sury they be received the same as coin by tho
| officers Of this Department In all payments in
| all parts of the United Statoa.
II any further provision of law Is deemed
| necessary by Congress to authorise the receipt
\ Of United Btstes notes for customs dues or for
bonds, tho Secretary respectfully submits that
this authority should continue only while the
notes arc redeemed In coin. However de-
| sirable continuous resumption may be, aud
however confident wo may feel In Its mainte-
nance, yet tho experience OF many nations has
| proven that 10 may be impossible In periods OF
great emergency. lu suci events tho public
faith demands that the customs duties shall bo
collected in coin and paid to the public cred.
itors and this pledge should never be violated
or our ability TO perform II endangered.
Hcretoforc.t the Treasury, Ia the disbursement OF
| currency, has paid ont bins OF any demon nation
desired. in this way the number Of bills Of less
the demand for them. Such would appear TO be
the true policy after the lst Of january. The con.
consulted. The only way by which moneys OF
different kinds and intrinsic values can be main.
talned ~ circulation at par with each other 3 BY
| s1'S 'N'e'y
exchange 10 for the other. This principle Is applt
| cable TO coin as well as TO paper money. In this
way the ldrgcst amount Of money OF different kinds
| can be maintained at par the difercnt purposes
| for which each Is issucd making demand for It,
The refusal or neglect To maintain this species Of
| redemption inevitably effects the exclusion from
circulation OF the most valuable. which, thereafter
becomes commodity, bought aud sold at pre-
| minln.
When the resumption act passed, gold was the
only coin which, by law, was legal tendcr In pay
| mcnt OF all debts. That act contemplated resump
In ia Gtll
| tender Gluld then be lawfully issued. The only
| silver coin provided was fractional coin. which
s y s mail dS1 - oNy agu apSHe paSsa
| In our cJinage system. Tho silver dollar provided
| Tor was made legal tender for all debts, public
and private. except where otherwise expressly slip.
| tIlnted In Tie contract. The amount OF this coin
issued will morc properly be stated hereafter, but
| rs effect upon the probcm OF resumption should
| be here considered.
rhe law itself clearly shows that the silver dol.
| lar was not TO supcrsede the gold dollar; nor did
| Congress propose to adopt the single standard OF
silver but only to create Il hi.mctac standard Of
silver aud gbd OF equal value and equal ptIrchas-
ing power. SongreSs, lhereI9rc liniiri the amount
millions nor more than four millions per month.
but did not limit the aggregate amount nor the
period Of time during which this coinage should
| continue. The market yaluo of the silver In the
dollar at the date Of the passage of the act was A
cents IL gold coin; Now / Is about elshtysIx cents
adopt tho silver instead VI the gold standard the
amount provided for Is totally Inadequate for the
in European countrics, has established that Ger
tain amount Of silver coin may DC maintained In
circulation at par with gold though Of less intrinsic
bullion value
II was no doubt the Intentiou OF Congress topro.
vide a coin In silver which would answer multi
tuie Of the purposes of business life. without ban.
shing from circulation the established gold coin Of
the country. To accomplish this IL Is Indispensable
either that the silver coin DO limited In amount or
that its rllllDn value be equal 10 that OF the gold
dollar. II not, Its Use will be limited to domestic
purposes, Gold will DO either boarded or ex.
ported. When two eurrencies, both legal, are nu-
thorized without limit the cheaper alone will cir
culatG IT, however. the issue Of the silver dollars
Is limited TO an amount demanded for circulation,
there viii be no Depreciation and their convenient
use will keep them III par with gold, as functional
silver coin, issued under the actaPproved February
| II, 1850, was kept at par with gold.
The amount Of such coin that can thus be main
tanned at par with gold cannot be fairiyrestcd un.
til resumption Is accomplished. As yet paper
ing receivable for customs dues, have naturally not
entered into general circulation. but have returned
10 the Trcasury in payment of such dues, and thus
the only effect Of the attenpt Of the Department to
circulate them has been 10 diminish the gold rcye
nuc. Aitgr resumption these coins will circulate
extent that such demand will give employment To
silver dollars their usc will be an aid 10 resump
ton rather than u hinlrance. but IL issued In ex-
cess Of such demand they will at once tend TO dis.
| place gold aud become the sole standard, and
gradually us they incrcHse in number will hLl 10
their value bullion. Even the fear or suspicion
OF such nu excess tends To bauis gold, and u well
abi'hch, viii cause y continuous drain of gold
In silver alone. The serious effects of such mdi.
Cul change IN our standards Of value cannot be ex'
nggcricd aud lis possibility will greatly disturb
confidence In resumption, ami may make Necessary
| larger reserves and further sales OF bonds.
Tho secretary. therefore, earnestly inyokes the
attention OF Congress 10 this subject, with Wow
that either during the present or the next session
the amount OF silver dollars To bO issued be limit
cl, or their ratio 70 gold for coining purposes be
| changed.
lie points ont tho fluctuations In the relative
value OF gold and silver, as shown In the history OF
nations and the recent changes that have taken
place In the production aud u,o of the two metals
nnd susgestN the addition OF one-cighth or ono
tuath TO the thrkncSs OF the silver coin, which
would gTyllly iusplTc confidence and add greatly
to its circulation. As prices arc based OH unlted
States notes at par, no disturbance of vGlue'
would result from the change From the recent
conference At Paris IL appears that other nations
Will not Join Us la lNiHgan International ratio and
that each country must adopt Its laws to its own
policy.
II is respectfully submitted that the United
States, already largely interested in trade with
all part vi the world, and becoming by It's pDpu'
latlUn, wealth. cOmLlerce, and productions lead
ing mc'IbGr OF the family Of nations should not
ADOPT standard Of less Intrinsic value than other
commercial nations Alike Interested In silver and
gold, Us tho great producing country OF both, 1t
sh Iuldl coin them at such ratio aud On such con
h.tOns as will secure the largest use and circula
ton Of both metals without dsplaClng either. Gold
must necessarily bG the standard Of value in great
transactions from Its greater fcatiyG value, but IL
ran,astjs Whe ,yes s ndhsnsOo SdhssSs slr
multitude Of daily wants, and Is too bulky for use
IN the larger transactions Of business, aud the COS
OF is trauspDrtAtDn for long distances wOult
| greatly increase the present rates OF exchange
Il would, therefore seem 10 be the best policy
for the present u limit the aggregate issue Of our
silver dollars based oil the rallO OF sixteen To one
to such sums Gs can clearly bG maintained at pal
with gold until the price 6f silver in the maTke
. shall Gs'umO definite ratio TO gold, when thn
ratio should he adopted, and our coins made Il
conform " II; and the Secretary respectfully re
CJllmvuds that he DE authorized to discontinue
the coinage Of tho silver dollar when tho amour
outstanding shall exceed sJ1,OOO,OOJ.
. The Secretary deems 1t proper 10 state that II
} the meantime, IN the execution of the law Us |
now sId', lie will feel 1t u he his duty to redeem
all Quilted states notes presented on aud after Jan
Of the United states III the city of New York, II
Sums Of not les, than SO with either gold silyc
: coin, as desired by the hOdeI but rcscrying thl
I, legal option OF lhG GOYgrumtut, and u pay on
United state, u ,.,r lpr All other demands OH tn
Treasury, cNCei. "hen coin Is demanded on coll
U liabilities,
Z 1t Is his duty as uu executive officer to frankl
state his opinions tAut II he Is IN error Congress
. may prescribe such u policy u Is best for the pub
4 | lie Interests
- FuNDISG.
u The amount OF per Cunt bonds sold during Tia,
4 present year prior to November % Is 500 10 gE
c Ofwhich spI71OyIO were sold under tho Teiunln,
"A | act approved July H. ls7J. Six per cent bond,
. ! commonly known us hYe-twenticS, 10 IN cqun
= amount, have boon redeemed, or will bu ru,leulnr
I