Year: 1874

involuntary gambler; for in all sales,
where future payment is to be made.
both parties speculate as to what will
be the value of the currency to be
paid and received. [ earnestly re-
commend to you then such legisla-
tion as will insure gradual return
to specie payments, and put an i'm
mediate stop to fluctuations in the
value of currency" 1 still adhere
to the views then expressed, AS
early as December 4, 1865, the
House of Representatives passed a
resolution, by vote Of IA yeas to 6
nays, concurring in the views of the
Secretary of the Treasury, in relation
to the necessity of contraction of
the currency, with view to as early
a resumption of specie payments as
the business interests of the country
will permit, and piedging conserva,
tive action to this end as speedily as
possible, The first act passed by the
FOrty-irst Congress on the 18th day
of March, 1869, was as follows: An
act to strengthen the public credit of
the United States. BE it enacted,
etc., That i'll order to remove any
doubt as to the purpose of the Cow
ernment to discharge all its obliga-
tions to the public creditors, and to
settle conflicting questions and
interpretations Os the law by yirtue
of which such obligatiors have been
contracted, it is hereby provided and
declared that the faith of the Unite d
States is solemnly pledged to the pay
ment, in coin or its equivalent, of
ali the obligations of the United
States ,and of all the interest-5earing
obligations, except in cases where
the law authorizing the issue of any
such obligations has expressly pro-
vided that the same may be paid in
lawful money or in other currency
than gold and silver, but not of said
interest-bearing obligations not al
ready due, shall be redeemed or paid
before maturity, unless at such time
as the United States notes shall be
convertible into coin at the opt on
Of the holder; or unless at such time
bonds of the United States bearing
lower rate Of interest than bonds To
be redeemed, can be sold at par III
coin. The United States also solemniy
Hedges its faith to make provision at
the earliest practicable period for the
redemption of United States notes
in coin. This act still remains as
continuing pledge of the fate of the
United States to make provision at
the earliest practicable moment for
tie redemption of the Uaited States
notes in coin A declaration con-
tanned in the act of June 20, 1864,
created All obligation that the total
amount of United Safes notes issued,
or to be issued, should never exceed
four hundred millions of dollars.
The amount in actual circulation was
actually reduced 10 three hundred
and fifty-six millions of dollars, at
which point Congress passed the act
of February 4. I5Gs, slspending the
further reduction of the currency.
The


FORTY-FOUR MILLIONS


haze ever been regarded as reserve.
to be used only in case Of emereen>
cies, such as have occlred on several
occasions, and must occur when from,
any cause, the revenues fall below
the expenditures. Such reserve is
necessary, because the fractional
currency, amounting to fifty millions,
is redeemable in legal tender on call.
1t may be said that such return of
FRACTIONAL CURRENCY


for redemption is impossible, but let
steps be taken for return to a specie
basis, and it will be found that silver
will take the place of fractional cur
rency asrapidly as it can be supplied.
When the premium ON gold reaches
sufficiently low point, with the
amount of United States notes to be
issued permanently, within proper
limits, and the Treasury-beso strength
ened as to be able to redeem in coin
on demand, it will then be safe to
inaugurate system of


FREE BANKING,


with such provision as to take COM
pulsory redemption of circulating
notes of banks in coin or United
States notes themselves redeemable
and made equivalent to coin. As a
measure preparatory to free banking,
or for placing the Government in a
condition to redeem its notes in coin
at the earliest practicable moment,
the revenues of the country should
be increased so as to pay the current
expenses, provide for the sinking
fund required by law, and also
surplus to be retained in the treasury
in gold. / am not a believer. in any
artificial method of making paper
money equal to coin when coin is
now owned or held ready to redeem
the promises to pay, for


PAPER MONEY Is NOTHING MORE
THAN PROMISES


to paw, and is valuable exactly in
proportion to the amount of coin that
it can be converted into. While coin
is not used, circulating medium, or
the currency of the country, is no.
convertible into it at par 1t becomes
an article of commerce as much as
any other product, and the surplus
will seek foreign market as will any
other surplus, The balance of trade
has nothing To- do with the question.
The duties ON imports being required
in coin create limited demand for
gold, and about enough to satisfy
that demand remains In the country.
To increase this supply see 10 way
open but by the Government boarding