Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-01-06
NEW KIND OF LEGAL TENDER.
The BIN introduced in the House Yesterday
by Mr.. Post.


In the House yesterday Representative Post
Qn-) introduced for reference bill to convert
legal tender notes from government promises to
pay into legal tender government promises to
receive and to restore to circulation the gold
held in the treasury for the redemption Of
United States notes
1t provides that United States notes shall be
of such denomination, not less than 81, o. the
Secretary Of the Treasury shall prescribe, shall
not bear interest, shall be lawful money and .
legal tender for all debts, public and private,
and shall be in such form as the Secretary
Of the Treasury may prescribe; provided,
that hereafter they shall not be issued
- promises TO pay on the part Of the govern
nent. but shall be promises to receive, and
shall declare on their face: ''This United States
note for - dollars will be received and paid
out at all government Offices and Repositories
for all payments which are not by law required
10 be made in coin"
The Secretary Of the Treasury shall cause to
be prepared a sufficient amount OF the notes
provided for by this act, and whenever the
United States notes, promises to pay, now In
circulation come under the control OF the
Treasury Department they shall be retired and
the United States notes, promises to receive,
shall be substituted therefor.
All laws or parts of laws in conflict with this
act or which require q coin reserve to be held
States legal tender notes. are hereby repealed
III EXPLANATION OF THE BILL
Mr. Post saws: The reports Of the United
States Treasurer show that there is held in the
United States Treasury and counted as a liza
biity Of the United States 500. 0O0, 900, the re-
serve for the redemption of United States legal
tender notes An examination OF the acts OF
Congress does not make 1t clear that 1t was the
intention Of Congress to withhold rom
= Ar nm fOr hat
but thew are 40 construed by the
Treasury Department. The result is that one
hundred million dollars are held uselessly IN
the treasury for the redemption OF the legal
tender notes, which no one vents redeemed
Three hundred and forty-six million dol
lars Of such notes were issued and were
intended to circulate as money, but at
the same time Sl00 OCO 600 IN coin Is with
drawn from circulation. The legal tender notes,
while they are usually regarded as money are
on their face promise to pay money. 1t Is
claimed with much force that il the United
States issues money like a bank, promising to
paw on demand 1t must like bank set aside
reserve 10 be in position TO redeem
government of the United States, exercising |
Its power to issue money and declaring |
it to be legal tender, issue 1t in the form OF a |
promise to pay? Experience in other nations |
has proved that legal-tender promises TO re- |
eeiye on the part of the government for all
freely and be Of the same force and effect as |
legal-tender promise TO pay. In either case |
if the government is stable, Its power |
10 tax unthreatened and the paper Issued not |
excessive in amount for the purposes of inter- |
nal commerce. it will stand side by side with |
gold and silver, which must be the standard |
for foreign commerce In either case, II the /
stability of the government Is threatened anu /
its power TO tax liable to be reduced by |
revolution. ACKNOWLEDGMENT conquest, |
its promises to receive will depreciate |
only 10 the same extent as will its promises 10 |
pay. The distinction between paper money |
Issued by the United States government and |
money issued by private banking institution |
is marked. bank is carried on for in |
dividual profit Its promises must be re-
deemed and it must be in position to re-
deem them The problem presented Is not only |
TO restore to circulation the SlOOOOOOOO use
lessly held in the treasury. but also to raise the
United States government above the level of d |
private banking institution when it issues paper |
to be used as money"