Year: 1873

PUBLIC POLICY-THE DIFFICULTIES ~ NE


wAY-How TO OVERCOME rHEM-rHE VARi-


OIIs PLANS PROPOsED-REsUMPTI0N AT


FIxFD DATE THE MOST ExPEDIENr ONE


THE FINANCE COMMITTEES BILL


IassgRAL PRESS DIsPArcHl


WASHINGTON, Jan. l6.-Mr Sherman, to-
day called up Mr. Buckngham's bill for q return TO
speoe payments and addressed the Senate in favor Of
resumption He showed by reference to the history OF
our existing currency that the public faith pledged
10 resume specie payment, and argued that the time
for resumption had almost Passing then TO the
question OF policy, he said:


RESUMPTION DEMANDED by PUBLIC POLICY.


Ihave presented argument public faith IN the
foreground for II is the first TO be considered Du' sPo
payment only required by the public faith but t
Is now demanded by public policy. or to use narrower
phrase it Is wise political economy Experience mas CO.
tablished that every nation using depreclaoeu ou
rsncy loses in exchange with nauoh having pe.'ei
currency II we buy abroad specie is the standard OF
value and the cost OF the article, too Is at once III
creased by an addition the depreciation OF our money
and a pereentage for exchange and risk. What
we sell abroad is also measured by the specie
standard and the loss by exchange whether we BUY or
sell Il paid by u.s. This loss ismore severe when applied
10 contracts 70 paid in the future and especially 10
railroad and other bonds payable after period Of years
These bonds must paid in gold whether the gold is
stipulated for or not and yet the price paid for them is
usually in currency We in gold aud receive IN cur
rency and this the outset submits us TO loss OF the


tire depreoation of our currency The interest paid
on this discount OF bonds would in many cases,
applied as a sinking fund.- pay of the whole Of the prn-
cipal before il accrues That depreciation OF the
currency always injuriousy affects community in
which Il exists shown by the experience
OF the colonies before the War of Independence In each
OF them some form deprecated money used The
value Of the pound and shilling in current use was only
from one half par of the value of the standard coin OF
Great Britain aud this depreciation often measured the


50 a. oalsv Nufnn
currency in common before the late and which
depended entirely upon the law of the State authorizing
It, the notes Of the Western States were as q rule
deprecated and these States suffered the loss; while IN
the Eastern States. in which better banking system
prevailed the notes we're maintained at the specie
standard and great profits and acoumuatons were made
by their practical monopoly Of the banking business
The great body Of our people do not pause to consider
their loss hy the OF deprecated money. II Is lawful
money: &c brings all the DeceSsares OF life; pays
debts: Is convenient 10 carry, and is OF uniform value
throughout the United States, and is amply secured


Their advantages are obvious and satisfactory, but all
Of them can he better secured with currency that will
purchase as much food or clothing the sum in
gold coin; that will measure the products OF all other
nations "a vel as and Is not subject to the fuc
tuatOns aud speculative changes Of our present cur
rency. Again IT is impossible to give deprecated
currency the quality of 1exibliity suspension
OF specie payments necessarily suspenus all
redemption OF paper money The United states notes
being irredeemable the National Bank notes are ire
deemable all Of them beng paid out, there Is no
object 70 return them and thus, not only the united
taes get the benefit OF forced loan from the people
without interest and without the burden Of redemption,
su the banks get the benefit of forced loan from
the people without interest, and without the burden Of
redemption II is that the banks required TO
maintain certain OF United States notes to Sc
cure redemption OF their notes. but practically we
know that no notes furnished for redemption 1t is
on this ground they apply TO us 10 relieve
them from the burden VI maintaining reserve.
We are told that we require them TO keep idle in
their vaults currency sorely needed by the business


inity merely to the redemption OF notes that
are never presented for redemption. II Is true that
bank unnecessary and dispensabe unless for
the redemption Of their notes. II the idea OF redemp
ton is abandoned indefinitely postponed then all re-
serves should be dispensed with If the only object is
- make the currency abundant, without regard to It's
value compared with coiD then reserve Is folly
Indeed whole national banking system could be ds-
pensed with n our currency 10 be permanently ire
deemabe II is impossible to state reason why the
whole OF it should not be issued by the United States or
why any OF It should be issued by bank


.rHE uSIrED STATES NOTES THE WAY OF RESUMPTION
The only benefit the public derive from bank Of issue
W ltu uished from the private interest OF It's STOCK
holders h that the bank note is the convenient repre-
entaton OF coin that its capital resources and reserve
furnish security redemption OF It's notes in CON-
and t, It is convenient agency 20 distribute its notes
~, 10 those engaged in producing and transporting
property Any policy that abandons the redemption OF
iauk notes ia coin will inevitably lead to the abandon
,ent OF banks Of issue. For the public will not long
allow the banks 70 derive profit from issuing notes u
le they assume the burden Of redeeming them This is
.,rd,rstood bv the National Banks. They do not
brk from the duty Of redeeming their notes but say
mat while the notes OF the United States are awful
money ana legal tehder and both deprecated ana
undesirable the banks cannot redeem except Wlth
United states notes. 1t is the United States notes that
stand IN the way specie payments. IT, any way they
ere maintained al par with coin the obligation of the


hanks 10 maintain their ia coin would be easily en-
forced Then the superior excellence OF the national
banking system would be demonstrated" it would no
longer be a monopoly but under the law as II now
stands would Do free to all who choose 10
engage in the business. The plethora OF
money AT one time and its stringency at another
would be regulated by the redemption OF notes when
abundant aud their increased issue when required oy
new demands. ANY attempt to make corner by lock
ing no currency in bank would be met by ts issue
by another The corresponding privileges and burdens
Of bank OF issue would relieve them from prejudice
The maintenance Of their notes at par with gold to-.
retber with their absolute securities now, would be
recognized as an equivalent for the privileges they
enjoy Again all the existing laws authorizing United
states and bank notes based upon the theory OF
specie payments. The notes were only issued how
ever during war; under a suspension Of specie pay
rnents There was medium of payment except the
public credit We could not utilize the pub
he credit in borrowing money until we mad
provided medium Of payment For that purpose we
carried the public credit into limited amount Of lawful
money but promised TO pay this money in coin When
the lawful money was issued did not anticipate the
extent Of its depreciation and constantly kept In view
its speedy redemption. Ordinarily the practice OF
Government In furnishing money is limited to stamping
upon gold and silver OF certain weight and neness its
intrinsic value Here It's duty ends But IN war time
this process OF coming did meet the public neces-
sfe and the United States carried its credit into
money and this process has been upheld by all Depart


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