The evening times., 1895-12-16

Wouiu De required 10 retire and cancel uli
| the notes; and the annual interest charge
will be much greater than II would be neces-
| sary TO incur on new class or bonds
| adapted to the present circumstances OF
| the government and the weli-AnOwn prefer
ences OF investors. If, however, an attempt
| Is to be made TO keep the United States
| notes and Treasury notes permanently In
circulation by reissues after redemption.
and the government Is to be permanently
charged with the duty Of sustaining the
value Of all our currency, paper and coin
that the policy OF issuing bonds for the
| accomplishment OF these purposes must
| also become perma nent. and such ADDITION
al powers must be conferred upon the Secre-
| tary as will enable him to execute the
| laws relating 10 these subjects with the
least possible disturbance or the business
affairs Of the people. and the leust possible
charge upon the Treasury. l EN- thorough
| iy convinced that this policy ought not TO
| be continued, but that the United States
| uOtrs and Treasury notes Should be retired
frnm circulation at the earliest pra cticable
| day. and that the government should be
| wholly relieved from the responsibility OF
providing a credit currency for the people.
at would be difficult, II not impossible.
| TO uevi>. u more iuCoDveiient. expensive
or dangerous system than the one now IN
operation under the laws providing Tor tue
dtS notes by the government. AUpougn
| bonds to the amount OF mere tiian go
10000 have been sold to provide LOT .ne
redemption OF these notes. upon which dhe
interest already paid exceeds ST, ,oOo.Uoo.
and more than $407 900 900 have been
aStray sen S. S ESS6 81 e Ffsss Pss
ury notes exchanged for standard silver
dollars aud Cancelled, are stfit OUTSTANDING
aud still threatening the credit of uie gov, gov.
ernmeDt and severely taxing the resources
of the people. Originally issued as TEN
porary expedient TO meet pressing eheI
geucy In a time of war. ana even lneii ue
nounced by many OF the ablest financiers
aud statesmen in the country as dangerous
and unconstitutional departure from sounu
| economic principles, the people iiad a I,Ele ,
To expect that these Obligations WOuIu u,
eXtinguished as soon as possiDle aIter ine
restoration Of peace and the re-estapiish-
mcnt OF the usual and proper relations De
tween the government ana the Dusihess III
fairs OF its citizens.
..Iu compliance with the assurances given
when they were first authorized. anu IL
obedience to the demands III all our SUD-
stautial business interests, Congress. with
in Tess than a year after the cesSiitlon W
hostiliiies, passed an act aunorlzlnE tns
use the proceeds in retiring the UMted
States notes, but providing tnat not more
than $4,000, 900 should ebe retlred anu
ca ucelcd during the first six months altet
the massage of the act, nd thereafter not
more than $4,0UO,OOO In any one ihohtii;
Under ti.is act, which was approved Apfh
II, 1856. notes amounting !" ,S, SSHigE in Ian.
uary, 1868. another act was passcd nv oon-
gress, which became law without inc ap-
aufhori,y V conferred upon the Secretary, and
the retirement and cancellation ceased.
THE RESUMPTION ACT.
"Afterward, the weli-known resumption
act OF January a. 1878, was passed, which
provided that all United states notes In
excess OF $500, 100000 should be retired
and Cancelled, with certain ilhii,a.,ons as
10 the method of retirement. ana tiiat, aiusr
January l, 1879, the Secretiiry OF the
Treasury should redeem in coin all such
notes as might be then outs,ahahe on
fnr rs<dl
of not less than $50. Under this act notes
to the amount OF S35. 81 1884 We're retire
ana Cancelled, when the process WIS again
arrested by the act OF May 81, 1878, here
tofore quoted. II is thus seen that two In
effectual efforts have been made since the
close of the war to eliminate this legal
tender paper from our currency ana, VIII,
out now attempting TO discuss the causes
of their failure, ii is pertinent 10 suggest
that the injurious effects OF its continued
circulation had not then been felt as they
have been since, and could not then be
certainly foreseen. 1t WAS not then law
fully redeemab'e in coin, hut was mere
promise to pay at some indefinite time
in the future and. consequently, had not
been, and could not then be. used TO force
gold ont of the Treasury, and thus compel
repeated issued OF bonds to maintain
reserve: bat II had then, as it has now, all
the vices that belong inherently to legal
tender paper, whether issIed by the gov
ernment or by individuals or corporations.
and IT. also had then. as il still has, the
forced loan without interest.
There has never been n time since the
close OF the war when the gradual retire.
mcnt and cancellation OF the United States
notes would not have been beneficial to the
country. .Dorhas there ever been a time when
the Issue of additional notes OF the same
character would not have been Injurious to
the country. The amount of money in cir
cuiation VIII always he determined, if the
laws OF trade and finance are left to their
natural operation. by the degree OF necessity
nss or ris2r Ia
for II III crfecting exchanges of commodities !
and rs Il ba sis of credit: and ir had money
is suppressed. good money TO the extent
required VIII invariably take its place
Money viii go whercit can he most Drofitably
employed. and il will retire whenever the
opportunity for profitable use no longer ex-
lists. III our legal tender notes were re-
tired. there is abundant reason to believe
that very large amount Of gold which has
been excluded from the country by the ex-
cessive use OF silver and paper in our cir
culation, would promptly return to take it's
place in our currency. and constitute a
permanent part of our medium ofexchange.
"A country having such extensive trade
relations with other countries We now
enjoy cannot be deprived OF its proper share
OF the worlds stock of money. and. If 1t
adopts and adheres to a sound and stable
currency system a home. ii will get the best
money the world has. because no other kind
is ever used i'm international transa ctions.
As long as the government lea YES our people
reasonably free to trade q broad. and docs
not make any kind of paper legal tender
in the payment of debts. 1t cannot ma.
terially or tnjuriously contract the currency
by the withdra wal of its o wn notes. The re-
tirement and cancellation OF the legal
tender notes would not necessarily produce
any contraction of the rculation: and il
such a result should follow. and continue
for any considerable period. it would be
OF the fact thatthe volume Of
currency previously existing was not tneeded
the volume is reduced below the actual
requirements OF trade. the deficiency will
be supplied either from abroad in exchange
for our products and securities. or by the
banks at home. or Dy Doth.
DISARRANGE OUR CURRENCY.
"The policy of maintaining lcgal-tcndcr
paper currency and attempting arbitrarily
to increase the volume of circulation by
the purchase and coinage oflegal-
tender silver after il had been demonstrated
that it could not be raised TO a parity with
gold al the established ratio, could not fail
ultimately to disarrange our currency and
impair its value In the estimation of
the world. without comforting any conIpen-
satory advantage upon any part OF our
people. On the 1st day of July. 1873. our
Tot al circulation outside of the Treasury was
ST29. L 80, ,634. while on the 1st day of De-
cenber. 1895. it was 81 1874. 1875. .479. be-
the population Of the country has
increased only about 81 per cent: and at
the same time the use OF credit Instruments
in place of cash has been very greatly in
creased in ali large financial transactions
Since the date first mentioned. full legal
tender silver has been coined TO the amount
of S423.2S9. 800. of which, however. the
sum of 81 O1 8. COS is still held in the Treas
ufy under the act of July ! 4. 1890, and
ST. SO. .931 .002 in legal-tender paper have
been arbitrarily added to the currency by
the issue of notes for the purchase of silver
bullion thus making tho obligation of the
TO redeem all its notes in coin
and MAINTAIN the parity of the two metals
SO burdensome that, for several years, a |
constantly increasing doubt of its ability to !