The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1882-01-19
AN OPEN LETTER FROM PETER
COOPER.

great prosperity Of business, the rapid extinc- |
ton OF the public debt and the sound condi- |
tion Of our finances, are calculated to inspire a 1
feeling Of admiration and pride in the minds |
OF every American citizen.
That portion of your report, however, which |
calls the attention of Congress 10 some meas |
legislation suggested, has filed my mind with |
the greatest misapprehensiou, and 1 cannot, |
therefore, permit the opportunity TO pass |
without entering my protest against the adop- |
'tion OF some OF the measures you have pro-
posed. &C.,
1 Win you permit me TO call your attention TO
some OF these measures and to the disastrous
consequences, which, in my Judgment, would
lbe certain to come upon the people II they
were carried out.
The measures which your report recon-
lmends, which / object to, are the following:
} /. To withdraw the silver certificates.
2. To stop the coinage Of silver dollars.
8. To remove the legal-tender quality OF the
Treasury notes.
4. To permit banks 10 supply the paper cur
rency, as the "laws OF trade demand"
( 5. To reduce the revenues OF the Govern
ment by removing the tax on bank deposits,
and by q reduction Of custom duties.
/ Q. To postpone the payment Of the debt un-
I'll the next generation
; T. To practically have all the bonds paid In
gold coin.
Let us consider these measures briefly in the
order here mentioned.
III understand you correctly, all OF the sil-
yer certificates shave been issued by the
Treasury office, upon deposit OF gold coin In
like amount" -. d.
Now II this Is true, Is II not an evidence that
the business men OF this country prefer these
silver certificates for business purposes togold
CONT Why, then, ask, should Congress pass
an act TO withdraw currency that Is preferred
TO gold coinf i understand from your report,
also, that these silver certificates are payable
in silver dollars" III so, is not this a further
evidence that silver certificates payable in sill
yer coin, even, are equal, II not superior to
gold coin as a currency in the estimation OF
business meni
Your report informs us that all but $780,
600 Of the silver coin in the Treasury Is already
covered by these silver certificates, and that
the currency in circulation has been increased
10 the extent OF S66O00,000 by the issue OF
these certificates. Can you now withdraw
these certificates, without contracting the
currency that amountf Do you think 1t
would be a safe experiment 70 contract the
circulating medium s66, ,0O0000l You say the
!" circulation Of S66,0O0,0OO OF silver certlh-
Gates seemed an ile1pedicnf addition to the
paper currency" Do you think that, after
having put them in circulation, and business
operations had been based upon them, prices
increased rs a result Of such imitation, and
debts contracted on them, IL would be just
and safe experiment now TO take this currency
away and leave that much less money in cir
culationi Would the business men be satisfied
70 use silver coin In place Of certificates that
they prefer to gold coini
You intimate that the National Banks under
existing laws might, IL they were disposed,
cause a serious contraction OF the currency,
and grave efnbarrassments to business" by
retiring their circulating notes, and refer to
the results OF such transactions at the time
Of the passage OF the Refunding Bill by the
last Congress.
II such serious consequences and grave en-
.barrassments TO business followed the con-
TRACTION Of only $l5, 1000 600 OF bank notes last
spring, what would be the result OF the with
Idrawl Of 90, 900 Of silver certihcatesi
You say, that "there need be no apprehen-
sion of too limited paper circulation, for the
National Banks are ready to issue their notes
lin such quantities as the laws OF trade de-
mand, and as security therefor the Govern
ment holds its own bonds"
IL Is very evident that the banks would glad
ly issue their notes In any quantities to be re-
lquired as money, and therein lies the danger.
The silver certificates are based on their full
value, in coin, I'm the Treasury, but what AS
surances have you that the banks would be
able 10 redeem the increased volume OF theil
notes in coin. Basing bank currency, that
iis not legal tender, on Government bonds
ldoes not protect the business community from
the effects of n dangerous imitation, or from
bank suspension and panics afterwards. The
lbi1l holder might be secured, but business
men would not be protected against a sudder
contraction Of the currency, which might MAKE
the depositors unsafe.
I Again, you question the Constitutional right
and suggest that these notes be deprived o.
their legai-teuder quality. lrtIrF ~
II seems 20 me that, making such a sug
gsstion, you could not have just apprecia
ton Of the value OF these notes to the people
or realize to what extent that value is en-
hanced by their legal-tender quality.
You admit, however, that legal-tender note
are without doubt a convenient and SAT-
currency for the people, and that 1t is for tn
profit OF the Government to continue the
circulation" and yet you advise taking iron
them one OF their most valuable qualities
Do you not know that by depriving thes
notes of their legnl-tender function, yol
would diminish the volume of legal debt-pay
tng money, to the extent Of S34G, o62, 900, a
oneei Have you considered what would b
the effect of such a course upon the debtors
IL your policy was carried out, It would prae
meet his obligations In gold coin; and, a
though those debts have been contracted
legal notes, In silver certificates and In silve
coin, you now advise Congress 10 withdra'
rhe silver certificates, 70 remove the lega
stop the coinage OF silver dollars. i trus
Congress will be too wise and too Just to hee
such advice as this, for IL they legtslate
carry out your suggestions, they would inev
tably bring upon the country one Of the moi
widespread and long-continued panics evs
kiown IN the history OF this country; pan
that would involve the business men in banl
ruptcy and inaugurate revolution among u
Has not the Supreme Court repeatedly q
cidcd that the issue OF legal-tender notes
the Government was Constitutional mea
nre, and as these notes are now, as you sa
IA convenient and safe currency" and "a prof
90 the Government" and are preferred
either gold or silver coin by the business me
of the Nation, and for twenty years haye tn,
been used, would II not be financial suicide
attempt either to remove their legal-tend,
quality, or to withdraw them from circul
tsb
currency we havei For the last three and
half years their volume has been fixed NJ
uniform. That volume can only be change
by act of Congress, and after the most matu
elaboration, while the currency of the banl
10 nuetuattng enormously at the pleasure
bank officers. Your report even admits tn
the banks by retiring their circulation mig
cause serious contraction Of the currenc
and grave embarrassments in business" al
you advise as a remedy that they simply
required to give previous notice OF theirinte
tion to retire their circulation; but will yo
suggestions in that regard remedy the evils
contraction or OF infiationf
The banks now hold the power Of almo
unlimited imitation and contraction, whi
power they are using to their own advantae
and there will be no stability or saf tyin bu
ners until that power Is taken from them.
The constitutional right TO coin money,
make legal tenders and to Issue currency, re:
in Congress alone, and the people viii nes
secure justice between debtors and creditC
until, as Thomas jefferson said. "bank par
rs suppressed, and the function of issuing CT
reney Is restored to the Government to who
It belongs" and that all currency, wheth
coin or paper, is made legal tender for del
Again, cannot but regard your suggesti
to stop the coinage Of silver as exceeding
,unwise. From your own statements 1t
pears that nearly all the silver dollars now
ithe Treasury are covered by silver certificat
land these certificates have been issued OF
deposit Of an equivalent in gold coin, show
iconclusively that certificates, which you II
mate are "redeemable In silver dollars wo
lbut cighty-cents In gold" are preferred by
people for business uses, TO gold coin.
Mr.. John Thompson, Of the Chase Natio
Bank, has declared that:
"The sooner silver and silver certifca
constitute the majority part OF our money
farther on will be panic and revolution
Instead Of Withdrawing silver certificates
Government should issue certificates cover
all Of the gold and silver coin and bullion Z
the people choose 70 deposit with the Cove
4. A..