The daily gazette., 1879-12-06
SECOND EDITION
From Harrington.
PRESIDENT HAYES ON THE FL
NANCIAL QUESTION.

PRESIDENT HAYES ON THE FL
NANCIAL QUESTION.
THE PRESIDENTS AND SECRETARY sHER
MANS POSITION ON THE FINANCIAL
oUEsTIoN-No DEPARTURE FROM
THEIR RECOMMENDATION TO con-
GREss. I..t
WAsHINaroN, Dec. 8, 1879.
Some Western republicans have al
lowed their excitement over the Presi-
dents and Secretary Sherman's financial
recommendation to carry them away SO
completely as to lead them into misrep-
resentalion of the opinions of these Off
GERS as privately expressed. 1t was re-
ported by several Western republican,
that both the President and Secretary
had, In conversation with them, shown
that they desired NO action from Con.
gress In accordance with their recon-.
men1ations, and that, In fact, they had
merely talked for buncombe in the Mes.
rage and report. There IL sufficient au-
thority for saying that this report gives
An entirely false impression, and that, 30
far from retreatin M from their public po-
sitiOns, both the President and Secretary
consider their recommendations about
the legal tenders to be of the greatest
public importance. The following let
ter. written by the President to perso.
nal friend yesterdays friend who does
not agree with him, by the way-shows
accurately where he stands and what he
thinks to be advisable ani necessary flor
the country
EXECUTIVE MANSION,
WASHINGTON, Dec. 4, 1879. J
MY DEAR-:-You want money to be
plenty, the rate of interest to be low; at
the same time you want the money to be
Q00d- 0v1IV hava this afatA Of
things when there Is confidence in the sta
biiity Of the currency. Capital will not
go where is Is uncertain In what currency
debts will be paid next month or next
year. II the legal tender for debts depends
on the uncertain action OF Congress there
will be want OF confidence, The only
constitutional legal tender 10 gold and sill
yer. Depart from that and confidence is
vestments In America are likely to be
profitable. A sound financial! policy will
bring US money from all the commercial
nations Of the earth. In good times pre-
debts. The legal tender notes are debts.
Let them be paid oy the coin in the Trea-
snry and the coin that is coming from
abroad and 1t will not contract the circu-
direction. 1t 10 sound policy which has
brought good times; the same policy will
continue good times. Sincerely,
r. B. HAYES.
This letter shows that the President is
in earnest about the financial policy
which he has recommended. 1t seems
doubtful at this moment whether the
Republicans will to any extent, support
his views. They are much alarmed at
the prospect of the currency question
coming up in the resolutions of N essrs.
Fort and Price In the tHouse, and OF
Senators ingalls, and Carpenter in the
Senate In favor OF retaining the legal
tender quality of the greenbacks are
being assidiously urged as the proper re-
publican ground on finance.
THE LEGAL TENDER CLAUSE BEFORE
/ THE BANKING AND CURRENCY COM
MITTEE-PROPosITION TO COMPEL
| NATIONAL BANKS To HOLD REsERvE e,
4 IN COIN.
There is certainly curious condition
of things here in relation to finance ques-
tions, as was shown to-day in the Bank
ing and Currency Committee. Mr.. Fort,
of Illinois, repub bliC an, called up his
resolution condemning any attempt to
withdraw the greenbacks or to repeal
their legal tender quality. Thereupon
Mr.. Lounsberry, democrat, of New York,
offered as substitute brief bill repeal :
ing the sections of the Revised Statutes
which make the greenbacks legal tender.
There ensued discussion in which Mr..
Ladd, greenbacker, Of Maine, took the
side of Mr.. Fort. Mr.. Buckner, dem }
OF Missouri, chairman of the Committee,
agreed with Mr.. Lounsberry, anil so did
Mr.. Chittenden, (rep.) of New York.
The whole matter will be considered by
the committee next Wenesdav, but it IL
probable that no report will be made
| until after the holidays, Mr.. Buckner
said this evening to your correspondent
al am ready to vote for such propo.
sition as Mr.. Bayards or Mr. Louns,
bery's ii it is brought before the House
! do not think the Legal Tender ac
| adds whit to the value Of the Treasury
a glaring invasion of the constitution
| and admitted rights of the States over
| contracts"
Mr.. BuckHer wrote two years ago q
| very able letter to his constituents ex.
posing the unconstitutionality of the
Legal Tender act, a letter which theI
attracted attention, although the repea
of the act was not then even hoped for
In tina. letter he showed that all the au
government were arrayed against thu
power to make paper money legal ten.
der, excepting the Supreme Court in it
| notorious decision, and he pointed ou
that the Legal Tender act was the paren
of the whole fat money and unlimited
initiation heresy.
The Banking and Currency Committe
to-day agreed to bill Of Mr.. Buckner'
compelling the national banks to keep
large part of their reserve in coin. Hi
object is, in part, to distribute througl
the country most of the coin which th
Treasury Is now boarding, and which
as he probab y sees, lis exciting the fnar
cial genius of different Cohgressmer
Mr.. Fernando Wood, for instance, pro
poses to have great part of this store O
gold spent to buy maturing bonds, and
he does not succeed in that s0mebod
presently will want to lay hands on it I
build Mississippi levees Or improve har
bors and slack water navigation. MI
Buckner said this evening to your col
respondent - -..y.s.
"The main purpose Of my bill is to sc
gold and silver afloat among the peopl,
IF they can see 1t and get it they will &c
accustomed to the use of it and get owe
the prejudice they now have now in ia
vor of paper. The use of gold and silve
has been on the increase in my State {
Missouri for some months past. If th
legal tender sections are repealed by thi
Congress then the national banks mus
have coin to redeem their notes, and
want to hasten their acquisition of i
We are to have, ! believe, a large pape
money initiation. In the next twely
months the national bank note circula
ton will increase, believe, at least $50
100000, and my bill compelling them I
keep coin on hand will serve to chec
this unwholesone imitation and keep
within safe bounds. My desire is also I