The daily gazette., 1880-01-28

TO the use Of inconverible legal tender
paper money, AID believe, with Thos =.
Jefferson, that " the abuses of paper
money are inveterate-by breaking up
the measure of value, that 1t makes q
lottery OF private property canno: be de-
nied." II Is from such results that COM
munism is the outgrowth, and to the dis
tress caused by unwise financial manage
ment attribute the dangerous projects,
fallacious schemes and attempts to array
the force of numbers against property
which we witness over the country and
which afford such opportunity for dema-
gogues 10 ply their arts and excite all
unthinking and suffering people to the
adoption OF false remedies and destruct-
i've measures of supposed relief.
THE SUPREME COURT DECISIONS.
He reviewed the Supreme Court dcci-
sions regard ng the constitutionality of
legal tender issues and said be believed
the constitution gave Congress the pow
er only 10 coin money, not TO issue notes.
He continued -
consider the construction of the con-
stitution by the Supreme Court in the
legal tender cases to be alarming and
most dangerous, for understand 1t to
rest the power TO issue legal tender notes
upon the existence Of some great emer-
geLcy OF which Congress Is the judge
AS the constitution was intended for the
restraint Of majorities and to keep all
power there not delegated within assign
ed limits, IL is obvious that the neces ,ity
for maintaining its provisions is g eater
in proportion to the excitements and
dangers Of the hour. Yet by the interp-
rotation of the Supreme Court the hour
OF the trial ofthe constitution is the hour
of its fallure--it is never so weak as
when 1t should be most strong. If this
be the doctrine we cannot be too prompt
now that the storm is passed, the sea
smooth and the wind favorable to put
our ship Of state in a condition to wealth
er further storms. Let us see where we
now stand. Secretary McCulloch In his
annual report of 1865, having expressed
the opinion "that the Legal Tender acts
were war measures passed In q great
emergency; that they should be legar,-
ed onIy as temporary" The House of
Representatives under sus, ension Of
rules by IA yeas TO only nays passed
the following resolution -
Resolved, That this House cordially
relation TO the necessity of contraction
OF the currency with view to as early a
resumption ot specie pay ments AZ the
| business interests Of the country will
permit, aud we hereby pledge co-opera-
tive action TO this end as speedily as pos
sible.
Among the IA supporters Of the reso-
luton find the following who are to-
day members of this body:-M essrs. AL
hson. Conklng. Dawes, Ferry, Morrill,,
Rollins aud VOot thees.
Mr.. Bayard went on to show how this
| policy had Teen abandoned, the notes re-
issued and kept In circulation. He said:
During the debate which attended the
passage of the Resumption act the pres
ent Secretary of the Treasury, Mr.. Sher-
man, who had charge of the bill in this
body, was asked by several Senator'S
myself am org the number-whether by
| The redemption of the United States
notes under that act they were finally
to be retired and destroyed, and he de.
clined to give any construction what
ever to the law on that point.
A FITTING TINE.
The present, he said, was an oppnr-
tune time for permanent resumption.
| An enormous demand for our cerea'
productions has sprung up, and the bal
ance of trade has made us largely the
| creditors of European States To pay
| this great debt the precious metals have
been Imported into this country, and at
least 81 600, 100000 Of gold is estimate ed
10 have been received here since June
| last. This increase in the flow can only
be arrested by our continued use of an
unreal money. 1t is q well known fnan-
cial fact that gold, compared with silver
or silver with copper, or paper compar-
ed with gold, are subjec. to the same
law, that the relatively cheaper medium
of exchange will be retained in circula-
tiOn and the relatively dearer will 1isap-
pear. AS paper drives coin out OF circu-
| lation, 80 the withdrawal of paper will
bring specie back again. The stock of
gold and silver in this country was never
so large as it is to-day. BY far the great>
| or portion OF the reserves of the banks
| which are largely in excess of legal re-
quirement consist OF coin. III our smaller
notes were Withdrawn gold ard silver
coin would rapidly replace them in Cir
culation. This state OF things is excep-
tional. This condition of prosperity may
soon be all reversed. Blight and storm
and drought may destroy our crops.
Events common in the history of ma.
uons may demand from our exchequer
extraordinary payments.
Mr.. Bayard argued that the withdrawal
| of the legal tender power from the
| United Stales notes can do Injustice to
no man, and cannot lessen the value of
the notes In the hands of any holder, be-
cause an equivalent for the face value is
offered In gold and silver coin in case
any creditor should ref1ss to accept
them. He showed that when In 1870 the
first decision OF the Supreme Court was
reached against the power of Congress to
make notes legal tender for debts, the
effect was to raise the value of such
notes in the market by diminishing The
premium upon gold from ten to fifteen
per cent, and on the contrary, when in
the year following this decision was re-
versed and the power in Congress sus-
tanned, the value of the notes declined
and the premium upon gold Immediately
advanced. He referred to the Weaver
bill, and argued that the legitimate logic
of such a measure would justify every
creditor who had been paid in green
backs in demanding the difference be-
tween their value and the value of gold
at the time of payment, and earnestly
appealed to Senators to meet all such
schemes at the threshold. He contin-
ued -
l believe the necessity is admitted of d
redi fusion and redistribution of powers
which in the emergencies of civil war
have been unduly absorbed by the ma
tional gov ernment, but what ac of CEN
| trail zation equals that which assumes to
create values by the fiat of Congress and
compels such values to be accepted as an
equivalent for any Indebtedness In
my view all other steps toward centrali-
cation are as nothing compared TO this.
There Is spirit of irreverence in these