Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-09-26

1
| inserted the provisions for the payment of the
customs dues in coin and the payment Of the
interest on the bonds in coin, and the provis-
ions allowing the SO bonds to Be re-
a e.s in nss years. the 100 bonds in
| vital, - has bssn shown, 70 the credit Of
tne government were reluctantly yielded
Dy the House, but wore tenaciously
insisted upon by the Senate and agreed to. No
candid person can now doubt looking back
| upon these conditions but that the Senate was
right, and that but for those provisions United
| States notes would have been more and more
| deprecated and restoration TO the normal
have been difficult il not impossible. doubt
whether wiser policy in respect to our debt
snd currency under the enormous strain Of
war, demanding sums % vast, could have been
TAT THE CLOSE OF TIE wAn,
under the administration Of Secretary McCul-
Loeb, in April, 1866, . radical difference sprang
up both in the Senate and in the House - to
| the best process Of funding the various forms
| OF Indebtedness Of the United States. found
myself at variance with Mr.. McCulloch, eec-
rotary Fessendsn and majority Of the 70
publican Senators. The law Of 1895, that op-
posed inefectively, provided for the CONVEX
sion Of the outstanding Indebtedness, including
the $40 treasury notes, into the per cent
| bonds Of the United States.
THE STORY OF RESUMPTION.
II believed then and believe now" Senator
Sherman continues, ''that under the great in
hation Of our currency the whole debt could
have been refunded into Q or per cent bond,
reserving the right Of payment within Q brief
period l also believed and still believe that
the $40 bonds, by fair construction Of the
laws, were payable in the kind and class of
United States notes issued under the law pro-
viding for the issue Of both these bonds and
notes. As a legal question this seemed to me
clear snd uncontrovertible. As . moral aues-
ton it could be urged with great force that it
was the duty of the United States first Of all to
make Its notes or promises to pay money equiva-
lent to coin before availing itself Of the right
to pay of the bonds with United States notes.
l. therefore, was not in favor Of asserting the
right to pay of the bonds with the notes until
the notes themselves were convertible at the
will OF the holder into coin Of standard value.
II the purpose to resume specie payments
within reasonable period had been declared
by law, and due preparations made for 1t, it
would have advanced the United States notes
rapidly to par, and they then would have been
willingly received in the payment Of bonds
and the whole mass Of indebtedness would
have been converted at a lower rate OF interest
In other words II the Same measure had been
adopted in 1865 for the resumption Of specie
payments that was adopted in 1875, q vast sum
would have been saved to the people in the
payment OF interest, the credit Of the govern
ment would have been maintained, the long
agony of recuperation would have been avoided,
the interest Of the debt would have been re-
duced and the resumption Of specie payments
brought about as early a. 1870 instead Of 1879.
but whether this be 30 or not, was over
| ruled, the law Of 1866 was passed and the mass
OF the Indebtedness was converted into per
cent bonds. Nothing was done to inspire hope
for the future until the first act Of the admin
istration Of Gen. Grant. in 1869, to strengthen
the public credit This was soon followed by
the refunding act Of 1871. This act invited the
same controversy between the two houses Of
Congress as that Of 1862, the House Of Repre-
sentatves insisting upon long bonds, the mass
OF them to run thirty years, the Senate insist
ing upon shorter bonds, with the right of re-
demptlon In ten years The compromise Of
fected by the act Of 1871 as subsequently,
amended provided for $500, 900, 900 per cent,
$500, 100000 ~ per cent and $70O, OOO, 900 4
per cent bonds. The act Of 1875 provided for
the resumption Of specie payments In 1879.
Under these acts the vast refunding operations
have been successfully completed and the re-
sumption Of specie payments accomplished.
THE INITIATION IDEAS OF TODAY AND THE REMEDY.
IF am correct in my view Of the past it will
be perceived that great loss occurred by two
ideas in conflict with each other, one that the
greenback should be retired by gradual con-
traction, leaving nothing but gold and silver
and state bank paper behind and the other .
wild and unreasoning demand for q substan-
TALLY unlimited circulation Of u. 8. notes with
out regard to their redemption or their specie
value. One was in favor Of resumption by con-
traction. The other was indifferent to resump-
ton and Was in favor of irredeemable paper
money bearing the stamp Of the gov
eminent without care for its
value in coin. These opposing ideas prevail
am9ng large masses Of people at the present
tied amount Of treasury notes, without any
basis at all or based upon silver at more than
its market value, and the other party are op-
posed to or reluctantly scquiesce in the issue Of
treasury notes based upon silver bullion at its
gold value. l believe that the present volume
OF United States notes ought to be supple
mented by treasury notes. limited in amount TO
the production Of the precious metals In the
United States at gold value deposited In the
treasury, represented in circulation by an equal
amount of paper money. This 10 the middle
and safe ground between undue contraction
and undue expansion"
THE FARMERS ALL RIaHr.
"How about the farmers and their money
troubles?"
Undoubtedly there has been much disoon-
tent among farmers during the last few years
as to crops and prices. This year they are
blessed with q bounteous crop Of all kinds and
q favorable time to harvest it, with O very Door
crop in competing countries. This fuctuation
in quantity and price Of the products Of the
Aoi "a 40 hA uh1SOioaDio luClucut W LQlb lQQub-
try, which depends 80 largely upon causes be-
yond human control The industry Of the
farmer, however intelligent and constant may
be defeated by want Of rain, by frost, or many
causes which no care or foresight can guard
against. He has the wide world for his COM
petitors. His productions being perishable
must be marketed within the year or are Of no
value. Favorable circumstances may add to his
crop in the United States and the failure Of
crops in other countries may add to his profits
The condition Of our currency and Of
other industries also affects their value.
do not see how these conditions
can be changed. Farmers are entirely
justified, like all other producers, in making
any arrangement to promote their mutual in
forests, but the number Of farmers il 90 great
that protection in this way almost ALWAYS fails.
With these drawbacks they have many advan-
tages not possessed by others. The farmer
produces from his own soil and by his own
labor all the food necessary for existence and,
with = convenient home market, can supply
other articles essential to life. He cannot be
affected by hostile legislation. All he wants is
good money, the highest standard and . fair
and just system Of taxation, which farmers al
ways, from their numbers, can secure and all
the rest depends upon Providence and his own
labor. Farmers are the great conservators of
our system, without which the influence of
cities would soon demoraiize and disorganize
| society.
II believe great changes will occur in the