Year: 1874

ing rathar than expanding the currency, out ne
Justly holds that the bill theoretically increases
the irrodeemable paper circulation &loo'
and has been supported on that assumption.
Should the bill fail to have this effect, it would
result in demand for additional inflatlon- This
theory, IN his opinion, VAS departure
from the true principles Of finance, na-
tional obligations to creditors, Congress
sional promises. party pledges, and from the
positions taken by him in every annual message,
and in his inaugural address. His statement OF
the action Of Congress and OF the Government
On this question clearly shows that the nation is
solemnly pledged to make provision 1t the
earliest practicable moment for the redemption
OF the United States notes in coin. The Presi-
dent claims TINT the S44, ,000, 600 Of currency in
exceas Of the $3.50, 600, 600 are q reserve, and 8
necessary one, to be held to meet any emergency,
and for the redemption OF the fractional cur
rency Ho thinks that upon the least tendency
tospecie payments this fractional currency will be
returned for redemption, and specie will rapidly
take it's place.


The President further argues that when the
United States notes authorized to be issusd shall
be reduced permanently to within proper limits;
the premium in gold brought to low point, and
the Treasury so strengthened that it can redeem
these notes in coin, then it will be safe to in
augurate q system OF free banking. He does
not approve Of free banking when the bank cur
rency Is 1edeemable only in another currency not
redeemable at all. He thinks the claim that
there should be free banking because several
States have lass than their quota ia answered,
At least for the present, by the fact that there
arc 81 000 900 OF authorized bank circulation as
signed to States having less than their quota
which have not been applied for.


This message is calculated to have = beneficial
effect upon the business Of the country. 1t
practically prevents imitation for three years to
come. It therefore gives that lease OF stability
to the national finances. It will emantipsto the
capital that has been virtually locked up
since last fall, afraid to venture into new
enterprises while the action Of the Govern
ment was uncertain. It will give stability to all
branches OF business; give fixed values to real
estate and all other commodities and generally
restore commerce and trade Of all kinds to
more healthful condition than they have been in
since the panic Of last September.


The message will prove beneficial to the
national credit for another reason. The re-
capitulation Of the national pledges to return to
specie payments at an early day. accompanied
by declaration OF the Executive that those
pledges must be maintained, will remove
the damaging suspicious Of American honesty
which have been produced by tho speeches Of
eome OF our ao-called leading statesmen, and by
the even more significant votes OF majority in
each House Of Congress. It will be encouraging
to our national and our personal credit the world
over to know that the President is mot be-
lever in any artificial method OF making paper
money equal to coin when coin ia not held ready
to redeem it.; and that "paper money is noth-
ing more than promises to pay, and is valuable
only in proportion to the amount Of coin that it
can be con7erted into." The argument OF the
President seems to US to be conclusive, and We
do not hesitate to give him full credit for the
6rnness with which he has performed his duty
to the country in the face Of hostile msjorisies
in both branches Of Congress.