Year: 1867

The bill prepared BY Mr.. Morrill, to provide
for reserve In the Treasury and national
banks and for other purposes shows that the
leading members Of Congress arc beginning %
understand our financial situation. Mr.. Nor
rill himself has made several steps in advance
Of his former position in the right direction.
His bill declares that no further redemption or
contraction Of the legal tender notes now out
standing shall be made by the Secretary of the
Treasury; that specie shall be allowed to 40
cumulate in the Treasury to. the amount Of
two hundred millions; that the Secretary shall
not sell or otherwise dispose Of gold or silver
until that sum shall have accumulated in the
Treasury; that all surplus revenue beyond this
specie reserve shall be applied to the redemp-
ton Of the public debt, and that both this
specie and that held by the national banks
shall be used in such manner as to lead US
to specie payments at the earliest period pos
sible. The bill so far agrees in the main with
our own views. The object is to provide for


returning to specie payments without con-


tracing the legal tender currency. We have


maintained all along that this could be brought


about in time, that we should grow up to it.


and that to attempt to force specie payments


by contraction would paralyze industry and


cause general bankruptcy. We have held,


too, that large specie reserve in the hands Of
the government would inspire confidence in
our ability to resume, and, consequently,


bring US nearer 10 resumption, just as an


ample reserve in tho vaults of the Bank Of
England gives confidence to the people Of
Great Britain in the soundness of that great
establishment.


We like that feature Of the bill also which
looks to the redemption Of the public debt by
the surplus revenues of the government But
Mr.. Morrill, does not 60 far enough. The
national bank currency should be withdrawn
and legal tenders issued instead. Our circu-
people would have unlimited confidence in.
We should save twenty millions year, at
least, by this change for the interest bearing
bonds now deposited by the banks could be
bought up by the greenbacks and cancelled.
The amount thus saved might be made per-
manent sinking fund, which at compound in
terest would liquidate the national debt in
little over thirty years. Inc Danks nave no
right to the profits Of this circulation they
belong to the people and government. The
proposition Of Mr.. Morrill, to redeem the ma
turing Indebtedness Of the government by an
issue Of notes payable in twenty years, and
bearing seven and three-tenths per cent inte-


rest in currency or six per cent in coin, Is not
the right way to reduce the burden of the
debt. This rate Of interest is too high, and it
would require an immense annual revenue to
pay 1t. We prefer our own plan of paying the
debt as 1t becomes due with legal tenders, and
then to give the holders Of these legal tenders
the opportunity and right, ifthey choose to use
It, of converting them into three per cent con-
soils at whatever might be their value in the
market If the circulation should become re-
dundant the greenbacks would End their way
into consols. The conversion would be op-
tional with the holders. The nominal amount
Of the debt would be very little aug
mented, if ut all, while the interest would be


reduced to half We hope Mr.. Morrill,, while


he is on the right track in some respects, will


60 further and give us q more thorough and


comprehensive measure.