The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1879-12-04

lie
1879, waa 3ll, 25G,678. But little coin has been
demanded on the coin liabilities of tho govern
ment during tho same period, though the
amount accruipR exceeded $500, COX, 900. Mean-
time coin was freely paid into the treasury And
gold bullion waa deposited in tho assay office
and paid for in United States notes. The ag-
Rregate gold and silver coin and bullion in tho
treasury increased, during that period, from
9l67 $685. 73A. 10 to e225 1873 55S "a, and the net
balance available for resumption increased
from slss, sos, so to $l52,737, l55.4s.
In accordance with the position taken in the
last annual report United States notes have
been received, since January l, last, in pay.
ment of duties on imports.
To meet the local demand for coin, in places
other than New York city, persons applying
have been paid silver coin for United States
nutoa. the coin being delivered to them on es-
tabllnhed express lines free Of expense; and
for some time gold and silver coin has been
freely paid out At The several sub-treAsuries
upon current OBLIGATIONS of the government.
There haa been. however. but little demand for
coin, and United States notes and the circu-
lating notes Ut national banks have been re-
oeived and paid out 1t par with coin in all bus
mess transactions, public OF private. IN all
parts of the country.
The specie standard, thus happily secured,
has given An impetus to all kinds of business.
Many industries, greatly depressed since the
panic OF 1873, hare revived, while increased
activity has been shown in al branches Of pro-
ducti"n, trade aud commerce. Every prepara-
ton for resumption was accompanied with in
creased business add confidence, and its con-
summation has been followed by revival Of
productive industry unexampled in our pre-
vious history.
The secretary ID of the opinion that the pro-
visions of existing laws are ample to enable the
department to maintain resumption even upon
the present volume Of United States notes.
In view, however, of the large inflow of gold
into the country aud the high price of public
securities, it would seem to be favorable time
to invest . portion of tho sinking fund in
United States notes, to be retired and can
ceiled, and in this why gradually to reduce the
maximum Of such notes to the sum of $780,
600, Co., the amount fixed by the resumption
that from its nature it il subject to grave
abuse, it would now appear to be wise to with
draw the exercise Of such power, leaving 1t in
reserve to be again resorted to in such period
OF war or grave emergency a. existed in 1862
The government derives an advantage in cir.
cnlating its notes without interest. and the peo-
pie prefer such notes to coin, as money, for
their convenience in use and their certain re-
demption in coin on demand. This mutual
advantage may he secured without the exercise
OF questionable power; nor need any inconve-
nience elise from the repeal of the legal-tender
clause as to future contracts. Contracting par
tics may either stpulate for gold or silver coin
or current money. In the absence of an ex-
presa stipulation for coin the reasonable pre-
sumption would exist that the parties contem-
plated payment in current money, and such
presumption might properly be declared by
law aud the contract enforced accordingly.
The secretary, therefore, respectfully sub
nits to Congress whether the legal-tender
clause should not now he repealed As to ell fn-
ture contracts, and parties he left to stipulate
the mode If payment. United States notes
should still be receivable Cor all duea to the
government they should be promptly relecm-
cd On demand, and ample provision made to
secure such redemption.
COINS AND COINAGE
The operations Of the ninta and assay offices
during the year, and their condition at the
present timo, are exhibited in the report of
the director of the mint.
The report also contains Recommendation
act.
The secretary respectfully calls tho attention
of Congress to the question whether United
States notes onght still to be . legal tender in
the pay ment Of debts. The power of Congress to
make them such was asserted by Congress dur
ing the war, and wRs upheld by tho supreme
court. The power 10 release them in time of
peace, after they are once redeemed, is still
contested in that court. Prior to 1862, only
gold aud eiiver were legal tender. Bullion
WA depoeited by private individuals in the
mints and coined in convenient forms aud de-
signs, indicating weight and fineness. Paper
money il promise to pay such coin. No con-
stitutional objection is raised against the issue
OF notes not bearing interest to be used a. q
| part of tho circulating medium. The CHIEF
| objection to the emission Of paper money by
the government grows ont Of the legal tender
ali %ov~ <I,n 81
would be measured by its convenience in use
| its safety, and its prompt redemption. In war,
| and during grave public exigcncy, other con-
alterations may properly prevail; but it would
| seem that during peace. and. especially.
during times of prosperity aud surplus rev.
ought to stand like any other promissory note. 1t
should be current money only by being prompt.
| " redeemed in coin on demand. The note of the
United StateA il now received for oil public
dues, il In carefully limited in amount, it il
promptly redeemed on demand, and ample re-
serves in coin are provided to give confidence
in aud security for such redemption. With
these conditions maintained the United States
note will be readily received and paid on
| all demands. While they are maintained, the
! legal-tender clause gives no additional credit
or sanction to the notes, but tends to lmpail
| confidence and to create fears Of over-issue. II
! would seem, therefore. that now and during
|
and Objectionable assertion of power. which
Congress might now repeal on the ground "i
expediency alone. When it is considered that
its constitutionality is seriously contested, and
| for increaaing the effectiveness CT that branch
Of the service and Furnished information rela
two to tho amount of specie in the country
and the production Of the mines of the United
| States, and statistics, brought up to recent
dates, of the currency of the principal coun
tries Of the world, ot the rates Of production
IF the precious mi tails, and of their conaump
ii in coinage, and in thu arts and manufac
lures.
The value of tho gold coinage
during the year was. ......... S4O, ?S6 9l2 OK
OF standard silver dolars. 27,237 500 o
OF subsidiary silver coin. .... s22 *
OF minor coin.. .............. s7,79S o.
Total. .....................S6 S. 3l2 .502 81
Gold and silver were separated in tho refincr
| les III the minis aud the assay Office ut New
York in the amount of $40 759. $40. 81 in gold