Year: 1868

CONTINUED FRUM TGlhD PAGE.


government could oe guilty OF no clearer act OF re-
padiatlon. To strike on onethird OF their value in
the hands OF the people does not differ in prin-
ciple from making them wholly worthless.
While they are deprecated and unprovided
nom them any element which gees TO constitute
their value. TO show that such measure would be
population In fact let consider the Character Of
the contract between the holder Of greepback note
and the government II is TO pay SO many dollars
nal contract between the government and the
holder The privilege OF funding the notes into the
1ve-twenty bonds, conferred by the Of February
rs, 1862, and which the Secretary proposes to re-
establish, only reducing the OF interest on the
bonds, is mere collateral privilege and in no wise
20 demand the performance of the original con-
tract printed on its face. When the govern
tract and throws the holder entirely UPON Collateral
privilege OF funding the notes into bonds, the act
forms the clearest possible de6naton Of reputation
and does not differ In principle from the proposition
OF the President TO apply the payment OF the inter
est to the extinguishment OF the bonded debt.
When the greenbacks have been brought to par and
the government stands ready TO redeem them, then
and not until then, can their legal tender character
that Congress should pass bill providing that When
The dve-twenty bonds are due the holders may fund


e1 into sa three per osns @ ana rnns
viii make no provision for their payment
The Secretary would call that Reputation.
and yet the is different IN no respect from that
which he proposes. The greenback note promises
TO pay so many dollars on demand; the bond pro





The greenback note declares that it 'ega tender
for all debts public ana private except duties on
gives It cne.third its current value; the bond pro-
mses TO pay six per cent In gold which Ia its chief
paw 70 the bearer and 50 does the bona the tile to
each OF them passes by mere delivery, and there ls
no more, more r.isonal,,y about the one than there
obligations OF the one promise are precisely
equal 10 those Of the other and Congress has as
20 strike out the legal tender clause on the note
the value OF the greenback note may be 30 depre-
fund 1t into bond bearing the very lowest rate Of
Interest or no interest at all. and Congress might
BY legislation 50 impair the value Of the nvetwenty
change 1t for bond drawing interest only at the
rate OF two per cent. The Secretary proposes to
take from the greenback currency 0ne-third Of It's
current value by striking from 1t its legal tender
character and then authorize the holder to fund il
same time telling him, in substance, that this is q
nnal measure, and that II he does not fund
the currency Of its legal tender character the poun
Try Will at once be brought to specie payment-that
@ Il 70 say, there win then be no lawful money but
ment Of debts and every man would he required to
pay coin on his contracts. But the Secretary could
not afford to strike down the value Of the currency
In this way without suggesting some provision for
It, and so. notwithstanding the fact that he had just
said that 1.-The policy Of contraction had been EN-
phatically condemned by Congress and it is now
too late to return to IT. he says .the law strip
Should also provide for funnu tem nln honSr
ut the pleasure OF the holder bearing such rate Of
Interest as may be authorized by Congress on the
debt into which the present outstanding bonds NAV
be funded" IL may well be imagined that the holders
OF the notes will then De ready to fund them into any
sort OF bond But what is that but contraction pure
and simpler The Secretary's policy travels In
circle which invariably brings him back to contrac.
fers only that policy which he says has been EN-
phatically condemned by Congress and emphatcaly
bleeding the country nearly to death to cure II OF
disease which demands tonics and building up. The
withdrawal OF even hundred millions Of .he circua-
uon would produce great stringency In the money
market innumerable bankruptcies, and most likely
result in panic and crash, from which the country
power OF the government to fund The debt and re.
deem the balance OF the greenback currency would
be parayzed. To contract the currency to the ex
tent Of funding all the greenbacks would be financial
suicide--woud precipitate disaster to the trade
,na naus,sy "a anu prospery oi the country ior which
70 specie payments In that way. We must descend
the mountain by easy slopes and gentle curves,
from the top OF the precipice and be dashed in
pieces at the bottom But 1t Is broadly intmated by
the Secretary that the Supreme Court viii decide
payment OF debts to be unconstitutional and void.
not BY Congress. But II would have to be very
clear case that would justify the Court In making
decision fraught with such terrible caamities to the
country II there be doubts hanging about the ques-
ton they should be cast In favor OF the legislation
Of Congress and the preservation OF the vast
interests that are dependent on the maintenance
Of the law. The supreme Court, having Juris-
dlcuon over questions involving vast polti-
be something more than the rigid expounder Of
statutes collator Of precedents, and should view
such questions as statesmen as well as lawyers II
was Lord Mansfield who pucked up by the roots the
hoary abuses OF the law, however deeply imbedded
in ancient authorities and who In the construction
of statutes and settlement OF great questions de-
cided them In accordance with the Progress OF the
timeS and the new conditions OF society, and thus
rendered himself immortal in the history OF juris-
prudence. Believing. as do, that these laws are
constitutional and were mperatively necessary al the
fhntrra
which they would be suddenly destroyed with horror
and the court making 1t would descend In history "a
the author OF the most appalling financial disaster
that ever occurred in any country. But have fun
faith In the learning ability and patriotism OF that
august tribunal and believe IL VIII not render its de-
csion until the question has been viewed In all Its
bearings and consequences.


To return to specie payments without q crash is
the great desderatum and this can only be done by
making the process gradual. Time Ia necessary
element and the first question to be considered IA
the period which should be fxed by the government
begin the redemption OF the greenback notes. and
IN my bill l have stated the list OF July,
point OF any plan which proposes to bring about re-
sumption without crash and disaster. In proposing


s~G ssyera na Objects c ~ ,s woFS & re-
establishing the period OF redemption fixed value
b given the greenback note. Now Its gold value is
nuctuating and deceptive, sometimes varying az
much ten per cent In sixty days, and scarcely
ever remaining the same for week time. Bot
by fixing time for Its redemption certain value Is
given TO II. II the note is TO be paid In gold on the
LIST OF July, 1871, Its value to-day can be deter
sna eaa, 1s %prove as the ms cp
redemption approaches; and other preparations
being properly made, 1t viii be at par on before
the day fixed for redemption by gradual apprecia-
flon. BY fixing the time OF redemption, one chief
element In the value OF all commercial paper is
gaiued-that OF certainty In the time Of payment.


Second, by fixing the period OF redemption the
country Is notified and may be prepared Tor the
change People will have II in view IN making
new contracts and arrangements In business
and debtors, fearing decline In the prices
OF property, viii make haste TO pay their
a hal
the great body OF existing debts among the people
will be paid The debt now contracted, which will
NOT fall due for two years and half is very small
and is generally for real estate The great dnicuy
generally attending the improvement in the value OF
the currency IN the resumption OF specie payments
where they have been suspended Is the reduction In
the nominal prices OF property and labor, which
operates nurousy upon the debtor class. II Ia gen.
orally true that the purchasing power OF the cur.
rency ~ increased the nominal prices OF propertv