Year: 1870

currency. The financial panic which occurred New
York in September last threatened, for time, vide
spread very little Increase OF the then pre-
yaing dstrust might have thrown the whole business
OF the country into confusion That panic womb o nOs
have been possible but having In use as money
something which, lacking the intrinsic worth OF he pre-
clCus metals must depend for Its current e. estmaea e
value is curse to the great body OF the people rem


the economy OF the household and makes the savings Of
labor laid up Mt the cost OF much seltdenal OF uhcer


tam and variable value IL we woua o. @v1a ead ~
speculation the which use TO denote the Vaue
fix the rate OF wages must be constant IN us own
value. and not liable to capricous fluctuations.


SPECIE PAYMENTS MUST COME


It's misfortune that departed from the use
OF the money of the Constitution. Sooner later
shall be obliged to 20 back It, We have before the
alternatives OF returning to sound condition by wise
and prudent efforts OF own, Of awaiting the poss
BILE advent Of financial panic Of greater intensity than
any yet witnessed, and return TO specie pay
ment the cost OF great aud pr0traeted suffering oy
the operation OF sefenforcng laws which above our
control do not believe that any contraction OF the
legal tender currency Is necessary In order 70 rach
specie payments. The amount Of such paper Is limited
and it not seriously deprecated We have NOT as Soe


limit and 10 an extent. making the depre-
ciatOn OF 1t SO great as 10 render IL almost "Orn


ess and its restoration to par hopeless The whole sum
OF the legal tender scarcely exceeds the amount or
coin received In two years at our custom-honseS Inc
OF legal tender notes at0at on the ISL OF Dce
her last was Including fractional currency, $39jO00OOO
The present annual gold income OF the treasury rom
sources OF the federal treasury IL ought TO be, and IL IS
possible to leave this currency at its present quany
thus to give settled prosperity TO the people and save
them the distress which will attend contraction.


After the peace 1875 England returned 10 specie pay
ments by contracting the volume Of her paper money
had no other OF reaching the result sbe was
not, as we are a gold producing country; and was
obliged therefore curta her paper currency 80 as 10
gold flow in to her from abroad In consequence OF
this policy the trade and business OF her people we're
crippled general distress ensued, and immense numbers
OF those who lived by wages were deprived OF their
ia
The years 1915 to 1925 period OF fearful
suffering In England and OF repeated and most disastrous
financial convuslOns We should take warning from her
experience. We have no occasion to force gOd INTO ths
country from abroad We produce 1t largely at home
and all need to do Is to retain enough Of our own pro-


The Government Is as much bound 10 pay its legal
tender its bonds am for paying both in ui,
aud against the reputation OF portion OF either Inc
pay money, that i gold coin on demand. They are IN
the pockets the aOorer and the farmer In the THIS OF
radesmcn ina the vaults OF the banks as part OF aud
security for the deposits Of the people, which deposits
constitute available capital essential to daily business.
The Federal Treasury In the hour Of its need forced
this irredeemabe paper the people; 1t s matter OF
simple duty in the time OF ITS abundant resources
to It, This paper displaced the coin which was
before in use Tho business OF the country has adapted
itself to the existing quantity of our present lawful
money and the people rely upon this BARTENDER paper
wher6with pay all ordinary oebs II is the substance
tOo which bank notes redeemed and In which all
that vast aggregate OF Indebtedness known as OaK uS
pOslts payable On this paper, therefore, the whole
Of internal business nov rests and upon It's
sOundness Is dependent the substantial prosperity OF
the people I is bad faith to the people to lessen ts
quantity, to take from 1t It's legaender quality, until


Wien coin occupied the same place in our money @ sys
serious withdrawal from whatever cause, OF the Rolu
use from the general cTculatiOn luYarlaDy pro-
duced financial trouble. The Withdrawal OF legal tender
must be followed by like trouble Ihe theory
those who advocate contraction Is that so soon as me
legal tender notes shall have been reduced To S25OVO
some other theoretical sum, the Government WIN DC
able make this reduced quantity redtemaOe IN com,
sibe to put the lesser quantity az par Dy lnaAlg u
Tedeemable. 1t IS obvious that, with little more eHO
present quantity be made redeemabe and put at
par and this effort rs due from the Government 10 tue
people The Federal Government Is bound to restore
coin to the place which formerly occupied in the busi-
Of the country aud from which the treasury i0r s
convenience, displaced IT, IL shOulu Dc Ieal 10
substitute coin the general circulation before 1t under
takes To withdraw legal tender notes. otherwise the
withdrawal Of the paper amounts TO an absolute destru
tion OF so much Of stock Of lawful money, and,
practically of5o much OF the peoples capital ID the form
ready money. Such withdrawal WOulI lessen every
where the paying debts make all debts less
diminish COINCIDENCE and render disastrous panlcS
probable -. IL, -. ,,... .
together The Government therefore, cannot make com
take place. in general circulation, of any portion OF
the which may DO withdrawn untl the notes are


first rendered equivalent 10 com lhs can Only Dc done
By making them redecmable In coin on demand. And l
must bore mind that this is all that is necessary to
restore -eneIdl specie payments. The banks
are not a OF suspensions: they redeem their
notes motes ana pay eHe country that lawful
money to-day equivalent to coin. they would
specie without any effort their part and without any
distress. 1t the Government. and the Government
DotSs alone which are irredeemabe When the Federal
Treasury ready to redeem It's legal tender promises IN
gold as fast the public likely TO present them.
specie payments thereby resumed all over the cOun-
try without further effort the part OF any one and
without inconvenience the people Inen aud not now,
will be the proper time for taking IN the paper Tor such
contraction do no mischief IL VIII IN TACT be no CON
traction The Treasury may then cancel every note
is paid gold and the notes being at par the
paid out OF tine Treasury will enter INTO the general
circulation place of the notes redeemed and dlmnu


Of the stock Of lawful money IN use Will be forced on
the people


found not quantity but In the fact that is not
deenlable it is. for that reason depreeated less
quantity continued to bo rredeemable Even single
note ISSUED by the Government or by any oer ueDtor
without provision made for its payment. would become
deprecated The remedy which wisdom suggests Is 10
make the notes redeemdbe, without paushg To discuss
the question OF how much money the people ought 10
have in In looking back, we see tnat when our
money was good ~ quality no apprehe@nso2ss @ s were le,
passed through its mint all the gold the people chose to
have coined. Political economists and statesmen may
speculate they do, to how much money Is necessary
and proper for the business OF country Ou lhsS queo
tiOn beyond their wisdom II the Government will take
care that money issues good the people Will
ulatc the quantity TO be used. by their needs


It Is the special duty of the Federal Treasury the


issue Of whose rredeembe paper has brought us 20 our
present condition. TO to IL that there Is an ample sup
ply O retained IN the country, so as 10 make the
transition from present currency to gold both easy
aud permanent. It seems obvious that this supply Of
gold should be in the Federal Treasury which Is response
bic for the only rredeemable paper now aoat that
the coin may be ready when the proper time comes TO


flow promptly out OF the treasury INTO general clrcula
In exchange for the notes redeemed The first great
OF the Government IA Ia make It's legll-tcuder
promises as good gold Having thus established its
credit it will find no difficulty IN negotiating loans at
lower interest and in managing its bonded debt t
not any than private debtor hope for high credit
while pay ing some debts and Ignoring others.


PAYING OFF THE BONDS.


1t deluslon suppose that the payment OF few OF
our bonds before they due materially helps the pab.


lie credit the Treasury is not bankrupt to its bonds
it is paying the interest according to contract, and the
principal is not yet due this not the point where the
public credit needs helped The Treasury is bank
rupt Its legal tender notes FOR failure 10 pay q
promise when 10 is due is bankruptcy. No debtor I'M
proves his credit by anticipating the
his obligations which due while lac ueglects pay
which due Nor does the payment of the bonds
before maturity tend materially 10 lessen the burdens Of
the people We're to cancel SlO0000OO0 OF bonds in