Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-12-03

ing act 10 Teuee m SIX per cent. uOhus da lLeE |
become redeemabe, by the proceeds OF the
sale Il bonds bearing lower rate OF interest.
The United States notes redeemed under the
resumption act are, therefor, the principal
means provided for the purchase o! bullion
or coin with which to maintain resumption,
but should only be paid out when they can
be used to replace an equal amount OF coin
withdrawn from the resumption fund. They
may, 1t Is true, be used for current purposes
like other money, but when so used their
place Is filed by money received from taxes
or other sources Of revenue.
In daily business, nO distinction need be
made between moneys from whatever source
received, but they may properly be applied |
to any of the purposes authorized by law. |
No doubt coin liabilities, such as interest or |
principal of the public deot, will be ordinarily |
paid and willingly received IN Unlted States |
notes, but, when demanded, such payments |
will be- made IN coin; and United States notes
and com will be used in the purchase OF
bullion This method has already been
adopted 10 Colorado and North Carolina,
ana arrangements are being perfected to
purchase bullion IN this way IN all the min
ing regions OF the United States.
BY the act approved June 8, 1873, the
secretary Of the treasury Is authorized to con-
stilute any superintendent of a mint or as
saver Of any assay CtiCe an assistant treasurer
of the United States to receive gold coin or
bullion on deposit. By the legislative ap-
preparation bill approved July 10, 1873. the
secretary Of the treasury Is authorized to
Issue coin certificates IN payment TO deposit
! tors OF bullion at the several minis and assay
Offices OF the United States. These provis-
/ ions, intended 10 secure 10 the producers of
/ bullion more speedy payment, will necessarily
J bring into the mints and treasury the great
/ body of the precious metals mined Ia the
/ Ualted States, and will tend greatly to the
/ easy and steady supply OF bullion for coinage.
] Fysvt4 Cd AT W.T.
! will be readily received for bullion
instead of coin certificates, and with great
] advantage and convenience to the producers
Deposits OF coin in the treasury will no doubt,
continue TO be made after the first of Janu-
| airy, as heretofore. Both geld and silver
con-, from its weight and bu &, will naturally
seek such a sale deposit, while notes redeem
able IN coin, from their superior convenience,
viii De circulated instead. After resumption
the distraction between coin and United
States notes should be, as far as practicable,
abandoned In the current aft irs of the gov
einm mt and therefore no coin certificates
should be issued except where expressly re-
quired 10y the provisions Of the law, as IN the
case of silver Certificates. The gold cert,G
Gates hitherto Issued by virtue of the discre-
ton conferred upon the secretary will not be
issued after the FIRST OF January next. The
The necessity Tor them duringa suspension Of
/ Specie payments Is obvious, bat no longer eX.
=
/; IN effect, coiu certificate. The only pur
nose that could be subServed by their ISSUE
: hereafter would be to enable persons to con-
vert their notes into coin certificates
and thus contract the currency anC
hoard gold IN the vaults Of the treas
utY without the Inconvenience or risl
, of It's custody. For convenience United State
notes Of the same denomination as the large
| coin certificates will be issued.
By existing law customs duties and the
: interest of the public debt are payable ii
in, and a portion of the duties was speci
Gcaly pledged as special fund for the pay
nent OF the interest, thus making one pro
, VISION dependent upon the ether. AS W,
cannot, with due regard to the public hnoor
: repeal the obligation to pay coin, we ough
: not to impair or repeal the means provided
! to procure coin. When, happily, our note
are equal to coin, they Will be accepted a
/ coin, both by the public creditor and by tn
> government; but this acceptance should b
left to the option Of the respective parties
/ and the legal right On both sides to demant
+ coin should be preserved iGvlolate.
+ The secretary is OF the opinion that
{ change Of The law is not necessary to author
q lie this department to receive United State
q notes for customs duties on and after tn
: first day Of Jaauary, 1879, while they are re
Q deenlable aud are redeemed on demand I
/ coin. After resumption it would seem
3 useless Inconvenience 10 require payment c
= such duties in coin rather than in Unite
States notes. The resumption act, by clea
implication, SO far mobiles previous Law
as to permit payments IN United State
s notes as well as in coin. The proviS
ion for coin payments was made IN th
midst of war when the notes wer
deprecated and the public necess
= ties required an assured revenue !
d coin to support the public credit. This alou
d justified the refusal Of the government to tax
If Its own notes for the taxes levied by 1t.
Il has now definitely assumed to pay these note
= in coin, and this necessarily implies the re
). ceipt of these notes as coin. To refuse theI
= is only to invite their presentation for coin
: Any other construction would require th
Il notes 10 be presented to the assistant treai
Il ur5r in New York for coin, and If used in tt
Y purchase of bonds, to be returned to To
l. same officer. or, if used for the payment {
n customs duties, to be carried TO the coiiectl
Is OF customs, who must daily deposit In ii
!, tIeisury all money received by him. 1t
not 10 be assumed that the law requires to
IT Indirect and ineonvenient process after ii
It | notes are redeemable IN com on demand
!, the holder. They are then at a parity Wit
e coin, and both should be received indlscrim
t natey.
i II United States notes are received f
it duties at the port of New York, thSy shoni
II DE received t0s the same purpose IN all oth'
d ports OF tne United States, or an uncOnstltu
= tional preference would be given to that pc
Il over other ports. Ii this privilege Is denie
# 10 the clhzens of other ports, they could ma6
l. such use ct these notes only by transportln
= them to New York and transporting the col
= to their homes for payment; and all this M
= only without beneis to the government. bt
IS with a loss in returning the coin again
: New York, where 1t is required for redemI
If ton purposes.
: The provision in the law for re jempticn i
e New York was believed to be PRACTICAL Re
n demption IN all parts Of the United State
e Actual redemption was confined to a sing
o place from theDecessity of maintaining on
one coin reserve and where the coln could
= easily accumulated and kept
d With this view of the resumption act, I'll
ID secretary will feel 1t to be his duty, unle'
If congress otherwise provides, to direct tn.
II after the first day of January next, and viii
Is United States notes are redeemed at tn
y treasury, they axe received the same as col
a by the officers of this department In all pay
k ments IN all parts CT the United States.
i II any further provision of law is deeme
d necessary by congress to authorize the rcceiI
II of nlted States notes for customs dues
4 for bonds, the secretary respectfully submit
IL that this authority should continue onl
= while the notes are redeemed In coin. How
= ever desirable continuous resumption may bj
e and however confident we may feel IN Il
4 maintenance, yet the experience of man
d nations has proven that it may be imposslb.
= in periods OF great emergency. In sue
r events the public faith demands that th
:, customs duties shall be collected in coin an
d paid to the public creditors, and this pledg
b should never be violated or our ability to pc
: form it endangered.
:. Heretofore the treasury, III the disburst
g ment of currency, has paid cut bills OF an
d denomination desired. In this way the nun
# Der of bills Of less denomination than fE
o dollars Is determined by the demand fc
= them. Such would appear to be the tru
d policy after the first OF January. il has bee
e urged that, with a view to place in circula
= ton silver coins, no bills of less than five do
: lars should be issued. Il would seem to b
II more Just and expedient not TO force an
form OF money upon public creditor, but {
Y give him the option OF the kind and denom
d nation. The convenience of the public, !
c this respect, should be consulted. The onl
v way 10y which moneys Of different kinds an
c intrinsic values can be maintained IN ciraU
L lation at par with each other Is by the ability
s when one kind IS IN excess, to readily eS
# change 1t for the other. This principle is CT
Y plicable to coin as well as to paper money
/ In this way the largest amount of money c
e different kinds can be maintained at par, tn
i different purposes for which each i5 issue
2 making a demand for it. The refusal G
9 neglect to maintain this species Of reIemp
; ton inevitably effects the exclusion from Gil
S culatlOn OF the most valuable, which, there
. after, becomes q commodity, bought and sol
f at a premium.
b. When the redemption act passed, gol
was the only coin which by law vas
= legal tender IN payment of all debts. Tina
: act contemplated resumption in gold col
5 oaly. No silver coin of full legal tende
= could then be lawfully Issued. The onl
e silver coin provided was fractional coin
which was a legal tender for FIVE dollars only
q The act approved February Is, 1878, made
{ very important change IN our coinage system
: The silver dollar provided for was made
! legal tender FOR all debts, public and private
q except where otherwise expressly stipulate
e in the contract. TIE amount of this col
i issued wall more properly be stated hereafter
Z but It's effect upon the problem Of re.umptio
e should be here considered.
o The law itself clearly shows that the s.lvt
o dollar was not 10 supersede the gold do!la
N nor did congress propose to adopt the sing
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