Year: 1874

August 1879. 80 WO 600
septembsr J. i5ooSoyo
October ! isn; ,sy1 l9gSSoSS


Total. $50 OJ0 900
The excess OF subscriptions over cals-vi8.,
$1l3 900 has been provided for by uncalled bonds
which have been received BY tne department in
the bonds subscribed Tor mas thus far been neeo-
tiated In Europe. where exchanges are still being
made He thus disserts on the


RESUMPTION OF SPECIE PAYMENT.


So much has been spoken and written within
the last decade, and especially at the last session
OF Congress, on the I'm anca questions relating to
and growing out OF our currency system that
further extended discussion OF the subject at this
time would scarcely seem to be necessary. The
and communities OF people, as well the sense OF
Congress as heretofore Indicated by the votes Of
factors OF the financial problem. Nevertheless,
the great and paramount importance Of arriving
at an ultimate solution of the matter, and Of re,
and stable currency, induces the Secretary TO
bring the subject again to the attention OF Con-
gress, and to ask that decisive steps be now taken
by the law making power for return to specie
basis. TO attempt an GnumeratOn OF the COM
phcated m1schiefs which now IRON an unstable or
nconvertible currency would carry this report to
lnexcusa6le length, and, alter all, would be but
nation can long neglect the wholesome maxims,
founded upon universal experience that uphold
public credit without suffering financial disturb
anCes and bringing serious consequences upon It's
people. 1t will not be denied that the existing
issue Of legal tender notes as circu. ating me-





Issue than the preservation OF the nation. Whether
| the argument IN support Of the validity OF the
| legal tender acts be resteo upon the war powers
| conferred on the government by the constitution
| clear that Congress could not have been Induced
| to pass such acts under any other circumstances
than IN q time OF the most pressing and urgent
need, such as q state OF war only produces. The
most earnest defenders OF the power TO issue gov.
tender for ali debts, public and private would
scarcely oe iound TO advocate the exercise OF the
power except under circumstances Of extreme
sSda evidence m the the debates @ and md proceed,
themselves, that it was not INTENDED to make the
legal tender notes the permanent currency OF the
country. The acts authorizing the issue Of sucn
notes provided for their conversion into bonds OF
the United States bearing interest at the rate OF
epm That the aet "a o M


IN coin or its equivalent, OF ali obligations OF the
United States Dotes." The same act lurtner r
afilrms that "the United States solemnly pledges
change and to paper currency representative
OF coin, because convertible INTO 1t at the
m the conc BESIDES she Deas y 1
throughout the world as q medium Of exchange,
mas q high intrinsic value can be procured only
by labor and In limited quantities which cannot be
increased by statutory laws, nor suddenly by otner
means, while inconvertible paper money may be
cost, note OF the highest denomination costing
no more than the lowest, and its volume depend
ing solely on legislative enactment. The history
Of irredeemaDle paper currency repeats itself
whenever and wherever IL Is used 1t increases
present prices, del1des the laborer with the Idea
that he Is getting higher wages, and brings a
nctltious prosperity, from which follow imitation
OF business and credit and excess OF enterprise
IN ever-increaslng ratio, until 1t Is discovered that
trade and commerce have become fatally diseased,
wnen confidence Is destroyed, and then comes the
sion, and demand for relief by further Issues
dollar legal tender note such as is now in cir
lse OF the government to pay dollar to tue
bearer, while no express provision Is made by law
lor paying the dollar at any time whatever nor is
there any existing provision for converting 1t into
anything that stands in o tangible ratio TO
dollar. AS far as existing laws 60, there is no
reason why the legal tender note OF the denoml-
nation or dollar should pass for one cent OF gold,
except so Tar as the government compels creditors
to accept 1t IN discharge OF obligations to pay
money. and obliges the wealth and commerce OF
tine country TO adopt IT as medium OF exchange.
OF the legal tender dollar, the hope that the gov.
ernment win sometime or other redeem It's paper
promises acc9rding to % their import. The un.-
rency tends to blunt the moral sense and
impair the natural se-dependence OF the
that the government must directly assist their
individual fortunes and business, help them in
charge their debts by partial payment. THIS in
convertible paper currency begets the deiusion
that the remedy for private pecunary distress Is
In legislative measures, and makes the people un.
mindful OF the fact that the true remedy Is in
greater production and less spending and that
real prosperity comes only from individual effort
and thrift. When exchanges are again made In
coin or IN currency convertible into IL at the win
OF the holder, this truth will be understood and
acted upon. II Is not nLended to call In question
the constitutional validity Of the legal tender
acts nor the wisdom OF those who, In the midst
OF a rebellion which taxed the utmost resources
and energies OF the nation, deemed the issue OF
such notes essential to success. Repeated adjudl-
cations OF the highest judicial tribunal tne land
sustaining their validity must be accepted as con-
elusive Of the question. All that now meant to be
asserted is hat the exigencies which required the
issue OF sucn notes have passed away and the
time has come for taking such steps as may be
necessary to redeem the pledge then made. The
power to do 80, as well as the selection OF means
to that end, Is with Congress- The Secretary can
do neither more nor less than obey and execute
such laws as Congress may enact. While It seems
to be very generally conceded that resumption OF
specie payment Is essential TO the honor or the
government and to the general welfare, the views
OF Intelligent and well informed persons as to the
best methcd OF resumption are SO widely diver
gent and the plans that have been suggested SO
muliif8rious, that the secretary feels embarrass.
ment In suggesting plan, the details OF which
will commend themselves to Congress. But there
are one or two fundamental ideas underlying the
subject which, 1t Is Deleved must be the basis OF
therefore, submitted for the consideration on
Congress. 1t is obvious that there can
be no RESUMPTION BY the government so
long as the volume OF paper currency is largely In
excess OF the possible amount OF coin available


Al