Year: 1876

don't force resumption"


After arguing that the degree Of contraction TO follow
and the effects OF it greatly exaggerated, he pro
eeeded:-


THE BURDEN or EXISTING DEBT


The remaining objection 10 the law Is that II will add
TO the burden OF existing debts This objection Is also
inscparabe from any plan OF resumption. Postpone
ment repeal will not help the matter The time for
redempuon must come. Current Indebtedness was
never less than Liquidation has gone on rapidly
since the panic, and In many by open bank
ruptcy Debts contracted since the passage OF the act
OF the old debts run for long period of years. and
when issued were made upon the presump-
Other large OF debt stipuate for the payment
OF both principal and interest in coin Nearly all the
best nvest securities at or near par in
gold and are bought and sold gold values Current
debts In trade mature and are paid long before tho
time for resumption, and II renewed the debtor and
creditor adjust the mode OF payment All new trans
actions based upon the knowledge that specie pay
ments will come at the time stated and that
Iower rates OF interest stipulated Let bo
liked the public that the LIST of January 1879
paper will be advanced the specie standard
aud debtors win readily borrow money payable in that
standard at lower rates OF interest Capital will no
longer be invested in gold bonds from the .ear that
loaned TO individuals It will be paid back deprecated
paper, but will eagerly be invested at low rates Of
interest on mortgage other security If TO be paid
in improved and improving currency. Indus
tries now languid suspended will hopefully
now that stocks are reduced, and production will have
fixed commercial value, not only in homo markets
but the markets Of the world. Merchants fear the
shrnkage OF prices but their stocks will be renewed at


corresponding reduction OF prices until all
urcd by The gold standard when they need have
fear change of prices except those arising from de-
mand and supply Debtors also generally creditors
and the loss and gain In values will balance each other
and the time is ample in which all losses can be ad-
justcd Nevor could our condition be better to
the specie standard than now, unless intend per-
petuate the OF deprecated paper money and totally
disregard the pledge OF the pubic faith redeem United
States notes in coin.


CAN WE REsuMES


And now, sir, come TO the second proposition
stated:-Can we resume specie payments the LIST
day OF January, 1872 On this proposition to
consider the question as IL affects tho national banks,
the fractional currency ana the United States notes


AS to tho national banks, have already stated how
redemption with them becomes easy and natural
process be performed without injury them or to
their customers to their usefulness by transfer
sale OF United States bonds, especially set aside for
that purpose and only TO the extent that each bank
may deem essential to It's safety The national banks
exceptionally strong. Their circulating
amount TO $346, ,479, 756 OF these notes they
have in their vaults the sum OF $17 166 100 They have
with the Treasurer of the United States $3.50 $50 in
UritedStaes bonds worth $427 947 224 in currency
@ soo - % Sso hou nssa os, zoe o'a,es
other United States bonds held in their vaults to the
amount Of SIS 909, $50 They have surplus and
above the capital fully paid up the of 1892 000
With the great body of them the redemption Of the
whole large part Of thor circulation matter OF
indifference To the extent OF certain per OF
their deposits and five per cent OF their circulation they
must maintain reserve OF United States notes, and to
that extent will aid the United States in maintaining
resumption The amount OF this required
is $50 1885, 200 but the amount in hand Sis 9S7
As United States notes are equivalent TO coin with





can, as other banks in England hold the notes
of the Bank OF England Is IL not thon apparent that
resume and that resumption by them need not be
delayed a single year; and that far their
notes are concerned is shame and scandal that they
only worth eighty-nine cents on the dollar-and
all because the United States will not advance its notes
10 par in gold?


And now the only remaining question is can VIC re-
deem maintain at par by The LIST day OF January,
1870, the United States notesr


The amount OF them outstanding to-day is
laQc hnol Inst nd dnSfr nd Nnv many
who fear resumption suppose the whole OF United
States notes will thon be presented Tor the gold and
they have counted the number OF tons OF gold that
will be required 70 do IT, They figure up the interest
at 1--WE per cent the whole and state that
aoulton 10 our annual interest account rs NOT ne
cessary to reply 10 such exaggeraons nor is II posi-
BILE TO state with precision what amount OF United
States notes would circulate at par in coin. They
could then be made receivable for customs dues with
out violation OF the public aith They will always be
the OF national banks They could then be madc
receivable bonds OF the United States They could
bo supported by the power TO sell bonds to redeem
thom. They would matter OF course. be sup
ported by the whole gold reserve in the Treasury
They would take the place Of certificates OF deposit
and be used in clearing house exchanges


Now sir. with all these advantages, with the grow
ing wealth and credit OF country do believe tho
volume of United States notes need be largely
any reduced TO keep them at par in coin We have now
Currency balance OF So $40 4o4 over and above our
currency and coin certificates IL Is true this balance
is subject ooverdue and accrung demands fully stated
in letter of the Secretary OF the Treasury,
but certain amount OF these demands al
ways remain uncalled for, and when pre-
sented are met by accruing revenue Suppose (what
l regard as extreme casc) that add TO this
500 COO 000 $50 600 In coin certificates and
$50 600 600 In com does ANYBODY doubt but II will be
ample 10 redeem any note iha. is prescnted9 Conf
dence being established in their redemption, and
who will want the gold for thcmS They be and
doubt will be rcssued without with the legal tender
clause, the law may hereafter provide, and with
their credit secured, established at par in con they
will ony circulate in Texas and the Pacific slope
as we'll other parts of the United States but like
the Bank OF England note, in all countries that have
commercial relations with us.


Sir l have confident belief that " Congress will
hold fast TO the law il stands the drift OF
and the practical operation OF the law will not only
vndicatc It's wisdom, but will secure due time every
proper auxiliary legislation carry into full
tion. The duty OF the honr demands hrmness and
faith There are times in the lives Of nations and in
dividuals when the temptation is strong from
the path OF honor, TO shrink from and vvade the per-
formapce Of obligations. Then II is than ever
that the old adege shoud be remembered that honcsty
is the best policy For one feel that my course Is
as clear the sunlight OF heaven trust that the
great party TO which belong may now, in
sterncr times and under greater diihculties stand
fast TO the national honor pledged BY 10 in
the act OF 1875 and when the difficulties INSOFAR
able from great duty have passed away Will be
proud Of our position now as we are OF the nrmncss
and faith with which we prosecuted great war, and
TO the people Of day and OF future genera
tons the blessings Of national union and universal
liberty


The motion to refer the resolutions 10 the Committee
on Finance agreed to


Mr. BoGY (dcm) OF NO.. called up the bill introduced
by him carly in tho session. authorizing the payment
OF duties imports in legal tender aud national bank
notes. upon which nc desired to address the Senate


Mr.. MORTON, (rep OF Ind, said II his friend from
Missouri (Bogyl desired TO go on to-day matter of
personal courtesy he (Moronl would press the un
finished business being the resolution for tho adms-
Of Mr. Pinchback, but be gave notice that when
the Senator from Missouri finished his remarks he
(Morton would ask the Senate TO the consld-
Grafton OF the unfinished business. and tomorrow ho
would ask that the session be continued until voto
reached


Mr. BOGY said -


BoGY's SPEECH.


Mr.. PREsDENT-The bill under consideration pro-
vides for the payment OF duties importations in
legal tenders and national bank or COIN at tho
option OF the importer And believing u 10 be not
only most important question but the most efficient Nc
not the only way by which the paper money in
culation can be made equal TO gold aud consequently
that way bring about specie resumption, will ask tho
indulgence OF the senate TO give briefly can the
for this conviction say conviction and not
opinion, because long reflection this subject has
brought my mind to the condition Of conviction what
may he thought by others.


j aware OF lhe many dilerent vieMa cnicriained