Year: 1879

TIE SUBJECT OF REDEMPIION


ny TELEGRAPH To THE rHIBUSg.I


WAsHINGrON, Jan. 1j.-Thc House Committee on
Banking and Currency, al its meeting this morning.
directed General Ewing to offer an amendment 10
the senate substitute for the bill repeating the Re
sumption Act. passed by the House of Representa-
tlves last session. That substitute is DOW on the
Speakers table and will probably be reached some
time this session. The amendment is as follows


Tror,ded. That money hereafter received FROM
sale OF bonds U the United states -ba he applied only
to The redemption Of other bonds hearing the highest
further that whenever from time 20 time, The proceeds
OF sGe OF bonds shall aggregate S3000000 the Sccre-
taN Oi The Treasury shall issue Oa for that amount 0
bonds Go bc redeemed aad the interest on bonds called
fer redemption shall cease II thirty daIs from
that all United states NOES received into the
Treasury s3ai be r''ssued and kept IN cI,,
the several denOWinatlps existing the 3ls' day of
tender notes OF larger denomination than $1,000.


This amendment may be said 70 represent very
fairly the present position of the imitation element
OF the House Of Ii, Representatives. When compared
with the action of the soft money men, year ago,
II shows how those men have been swept a NJ by
events in spite Of themselves. At the last session
of Congress, General Ewing and his followers de
uouuced the Resumption Act itself impractical
bic and proposed its immediate repeal. Now they
propose to prevent the sale of bonds by the Secre



tanug rcsumpuon, an ezpedicnt TO which there
now seems To b, very lttle danger that he viii
hereafter be compelled TO resort


Tie Secretary OF the Treasury has said repeatedly
that he believes his present stock of com and bull
Ion with the specie that is constantly coming into
the Treasury 20 bc sufficient 70 maintain specie
payments, and that he would prefer to have that
stock reduced by few millions A long ex-
changes remain in favor Of the United States. a.
they have been most Of the time for
months, and the confidence Of the people
III the ability of the Government to MAINTAIN
resumption continues, the clause Of the Resumption
Act which the first provision oI tins amendment
proposes to repeal remains in operation, and its
only use is as sort Of reserve, upon which the Sec
rctary OF the Treasury may fail Jack If at any time
it should seem necessary III order To strengthen or
increase the coin reserve.


The second provision of the proposed amendment
reduces the notice for the redemption of bonds from
three months to one 1t Is for the interest Of the
Government 10 stop the payment Of per cent inter
est on called bonds possible after the Sec
rotary Of the Treasury has the with which TO
redeem them; but the other hand Il il not fair to
the holders Of these bonds that the redemption shall
take place until thev have had reasonable notice
Whether not one month is ssutfcient TO the foreign
holder of United states bond that the Government
proposes to s,oD the interest upon 1t Congress will
determine when this amendment comes to be voted
upon.


The mandate that the Secretary Of the Treasury
shall issue a call for bonds every time the subsCrp
tons for new bonds reaches SO 100000 is reason
able enough but in such times these when the sub
seriptous amount to from $4,000, 900 to S14 900.
600 dav. the Secretary would have to make three
of four calls in tweuty-four hours.


The third proviso Of this remarkable amendment
is intended to prevent the retirement of United
states notes that have been redeemed III coin, and
to make il the duty o. the Secretary of the Treasury
TO keepnotes Of small denominations in circulation.
The latter matter Is wholly one Of convenience, but
the former involves constitutional question,
which will probably be brought before the supreme
Court at no very distant day. If II Is unconsitu-
nonal to issue paper money in time of peace II Is
held by many constitutional lawyers that IT IL
equally unconstitutional to pnt into circulation
notes that have been redeemed, or others IN their