Year: 1874

SPECIE PAYMESTS. 49,


Elsewhere in these columns will be found
the views of the President upon the proper
road out of our present financial difficulties.
They are difidently and modestly expressed,
but we venture to say, will command the
attention and challenge the respect of the
nation. The extreme simplicity of the
plan proposed by the President places it
within the comprehension of the most ordi-
nary intellect. 1t may be briefly stated
thus: First, fix date upon and after
which United States notes shall cease to
be a legal tender for all contracts.
He suggests as this date July 1, 1875.
On and after this date dollar shall be a
dollar in the coin of the United States,
and all contracts made on and after such
date shall be deemed and held to call for
settlement in coin. Coin shall be once
more the par standard, and if paper money
is not worth as much as gold it will be
quoted at discount. This simply means
that the United States legal dollar shall be
one hundred cents; no more and no less.
Every one can understand that


Tho second proposition in the plan is,
that on and after July /, 1876, the United
States notes shall be redeemed in coin by
the Assistant Treasures on presentation.
To supply coin for this purpose, gold-bear-
ing bonds could be issued if necessary.
Once redeemed, he would not reissue these
notes. In other words, this proposition
,,,oo,, 80 6,nd tI,o 1000 O00 OOA Of l,1oI
tender notes and replace them with coin.
In order to induce or compel the people to
retain this coin in circulation third propo-
sition suggests the withdrawal of all notes
below the denomination Of five by a gradual
process the second year after resumption,
and all below ten the third year thereafter.
Any necessary increase of currency which
business pursuits might demand might be
furnished by the unlimited issues Of the ma
tional banks, which, under this arrange
ment, would, Of course, be required to re.
deem their notes in lawful money. But it
is reasonable to suppose that no run would
be made upon such banks for coin as long
as their notes were secured by the de-
post Of gold-bearing bonds worth a
premium in coin in the United States
Treasury.


This plan means that the President would
manage the finances of the country as he
would his own. Finding that he had out
more l o US than his credit would bear,
he would economize and redeem them. If
necessary he would next increase his in
come in each practicable way. He would
pay interest on that portion of indebted
ness that he found himself unable to meet
in cash. He would sweep away all of the
small evidences of debt that could meet
and annoy him at every turn.


Moreover, he would, after certain fixed
date, arrange to pay cash for all his pur-
chases, and issue no moro irredeemable
promises. Arrived at this stage his credit
would be regenerated. If he must have
credit, he would 60 to money-lenders,
banks, bankers or capitalists, and, present
ing his securities, effect the loan necessary
for his purposes This is what he would
do as an individual if he was solvent and
wished to remain go.


This is exactly what he desires to have
Congress do for the nation viii It not
strike every reasonable person that this is
just what ought to be done? Willanything
less than this properly comport with the
dignity and wealth of the country? Will
not the poor laborer say that he wants one
hundred cents for his dollar instead of
ninety? The latter Is all he gets now.


We know that this proposition will be
met with all sorts of ridicule by the few
infationists who are gamblers and specula-
tors. They will say that the scheme is
impracticable, that the coin cannot be had,
That the shrinkage of values will break
everybody and all that sort of thing But
seems little strange that 1t is only when
contraction or specie resumption is talked
of that these gentlemen will acknowledge
that the volume Of paper money has any
thing to do with values. When an in
crease of two for one is asked, We are
cooily told that such an addition will have
no effect whatever upon the purchasing
power of the bills. The people know bet
ter. They are aware that adulteration of


- A-~Al~ElIzA


se-Iatter AUS nothing TO It's splrH or p2T
value.


The practical view that the President
takes of the way in which to retain coin in
the country Will commend itself to the
Judgment of thinking men and working,
men. AS water grayitates to its level so
do commodities seek the theatre of de-
mand. Coin Is no exception to this rule.
The precious metals are product of ours.
Having LITTLE use for them at home they
have gone abroad. Creating demand for
them here is the only practical way of re-
tanning them.


On the whole, it is not easy to see how
Congress can reject and ignore these
views. They form a simple well-defned
policy Of gradual return to specie pay
ments. If this policy is rejected by Con
gress, the people will determine between
1t and the President In tho approaching
elections. The result upon propositions sc
plainly put cannot be doubtful. The spec
ulatUrs VIII be beaten and the people will
triumph. .... ...-....r-..