The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-17
,r .r,,,rs-R1cHMoNn VA TUESDAY. DECEMBER II 1925:

In operation uncer the laws pro'i"'"5
the issue. redemption. and reissue OF ieta'
tender notes by. the Government ~
though bonds TO the amount of more tnan
s2s- cs0gO have been sold TO provide lot !
the redemution OF these notes, upon |
which the interest already paid exceeds
So 600 900. and mere than $40. ,0J,vcv hdN'
been actually redeemed in gold, all the
notes. except about Sl1,no,0o0 OF the treas
ury notes exchanged for standard SILVER
dollars and cancelled, are still outstand-
ing and still threatening the credit OF
the Government and severely taxing inc
resources of the people. Originally iss"eu
as a temporary expedient TO meet press
ing emergency in time of war, ana
even then denounced hy many OF TIE
ablest hnanciers and statesmen IN the
ccrntrv as 2 dangerous and dnconstitu-
tional departure from sound economic
principles, the people had night TO eA-
rect that these obligations would be eN-
tineuished as socn as possible after the
restoration OF peace. and the fe-estapiish-
men. OF the usual and proper relations ue-
tween the Government and the business
affairs OF it's citizens. In compliance with
the assurances given when they were hraI
authorized and in obedience to the de-
ma nds Of all cur substantial business IN
terests. Congress. within less tran "A year
an act authorizing the Secretary Of the
Treasury to sell bonds and use the pro-
ceeds in retiring the United States notes.
but providing that not more than SlO,VV-
CO should be retired and cancelled DURING
the first six months after the pa;sase OF
the act. and thereafter not more than 81
COO O0) in any che month. Unler this act.
witch was approved april l., 1856. notes
amounting TO S9,l6iSis were retired ana
cancelled. but IN January, lsb>, another
act was passed by Congress. which be-
came "A law without the approval of the
President. suspending the authority con-
ferrcd upon the Secretary, and the re-
tirenen; ana cancellation ceased.
EFFORTS AT REDEMPTION.
Afterwards. the well-known Resumption
! Act OF January IL, 1873 was passed, wnlch
provided that all United States notes In
/ excess Of 500. GOO O00 should be retired and
caIcelled. with certain limitations az TO
| the method OF retirement. and that, after
January I. 1879. the Secretary Of the
/ Treasury should redeem in coin all such
notes as might be then outstanding,
on their Pre-. entation for redemption IN
Gums Of not less than iifty dollars Tn
! der this act notes TO the amount OF $50
| 8ls.gI were retired and cancelled, when
! the process was again arrested by the act
| Of May 81, 1875 heretofore quoted. II IL
| thus seen that two ineffecutal efforts
have been made since the close or the
war to eliminate this legal-tender paper
from our currency. ard. without now at
tempting 10 discuss the causes OF the;r
| failure. il Is pertinent 20 suggest that tho
Injurious effects Of its continued circula-
ton had not then been felt as they nave
been since. and could not then be GER
tainlv foreseen II was not then lawful
IN redeemable i'm COIN but was a mere
promise to pay at some indefinite tine
in the future, and, consequently, had not
been. and could not then be, used 10
force gold out Of the Treasury. and thus
compel reneated issues of bonds 10 MAIN
tain a reserve: but IL had them as 1t mas
now. all the vices that belong inherently
10 leesl-tender paper whether issued by
the Government or 10y individuals or cor
Doraticns. and IL also had then. as II
still las. the additional vice Of having
been in its origin a forced loan without
interest.
LAWS OF TRADE AND FINANCE.
There has never been a time since The
cluose of he war when the graCual re
tirement and cancellation OF the Unite
states notes would not have been bene
fetal 10 the country. nor has there eve
been a time when the issue of additional
notes of the same character would no
. have been injurious 10 the country Tn
amount of money in circulation VIII al
, | WAYS be determined. If the laws OF trad
and finance are left TO their natural oper
, | alton. by the degree of necessity TOR III
use. or. I'm other words. by the deman
, for il i'm effecting exchanges Of commo
ditles and as a basis Of credit. ana
r bad money is suppressed good none
z to the extent required Will inNariaply tan
To- It's place. Money will go where II can .
n most prohtably employed. and 10 VIII 10
- tire whenever the opportunity Tor prohla
o. ble use no longer exists. II our legal-tef
20 der notes were retired there Is aDundaf
z reason 10 believe that a very large amour
10 of gold which has been excluded iioi
the country by the excessive Use OF -
10 yer and paper in our circulation, woui
d promptly return 10 take its place IN on
10 currency and constitute Il permanent pal
# OF our MEDIUM OF exchange A couhli
y having such extensive trade Ielaloi
s with other nations as we now ENJOY cal
l. not be d-prived OF its proper snare
- fb. worlds stock of money, and II
q adopts and adheres TO sound and 81
g. BILE currency system az home, u VIII
l. the hest money the world has, becau
d ro other kind is ever used in internauo
e al transactions. As long Is the Cover
y ment leaves our people reasonably III
N ia trade abroad and does not make ai
1 kind Of paper legal-tender IN the pay me
' of debts. IL cannot materially or lnJurlou
~ liz contract the currency by the VII
l. 0raval OF its own notes. The retiremc
~ end cancellation of the legal-tender not
would not necessarily produce any CO
traction OF the circulation. AMI II such
p result should follow. and continue
~ any considerable period. II would be
~ / demonstration of the fact that tie "
n ume OF currency previously existing "
,s ! not needed in the business OF the poop
= for whenever the volume IS reduced
no low the actual requirements or trace, l
,r deficiency will be supplied either frC
>, abroad i'm exchange for our products a
m securities, or by the banks at home
or by both.
ad FREE COINAGE OF SILVER
ne Tho policy of maintaining legal-t'
te der paper currency and attempting
~ hifrarflv 10 Increase the volume OF cir'
~ latiou by continuing the purchase a
~ coinage OF Iegal-tcndtr silver after IL
~ beor demonstrated that II could not
" raised 10 a parity with gold at the
-. tablished ratio. could not fail ultimate
- TO disarrange our currency anu srea
a impair its value in the estimation o.
- world without comforting any comp
liz | satorv advantage upon any part or
~, neonle on the LIST day Of July, 1913,
m, Total circulation. outside OF the Ireasu
in was $40 1872 G34. while on the ISL Gay
ne December. 1885. il was $i,5siE5,fa be
liz an increase Of more than lls per- &c
in although the population Of the coun
ne has increased only about p per cent.