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ury shall pay off and cancel all the five-twenty bonds and all others whose interest is payable in gold, and to exchange new bonds for them on such terms as shall be agreed on, or pay them in legal tenders.

on.

Certain money editors have professed to see in this a violation of public faith, which promised the payment in gold. Nothing is more false. It proposed to lift these bonds, by negotiating with the holders, at such rates as could be agreed If the holder declined to sell, he would be entitled to receive his interest in gold, according to the original contract. I suppose no man could be found in this House base enough to propose repudiation. None but a very stupid man could so misread the bill. True, it proposed to issue no more bonds of that kind, and repealed the law authorizing it. And yet it has been thought of sufficient importance gravely to introduce the resolution here declaring in advance that we intended to make no change in the law. What business has

anybody to inquire whether in our future issue of bonds we intend to pay the interest in coin or legal tender? It is enough for them to know that in contracts already executed the government will keep its faith.

It further proposed to pay off the legal tender interestbearing deposits, and to repeal the law authorizing such loan. It has turned out just as the committee predicted, that such demand loan has prevented the conversion to any considerable amount. While $80,000,000 of legal tender are deposited on call, but about $20,000,000 have been invested in bonds. It is obvious that at that rate the sale of bonds will aid but little in carrying on the war.

It proposes to repeal the law requiring the payment of duties in coin, as well as the interest on future issues of bonds, except one-fifth of the amount of duties. This is retained so as to furnish the government with coin to defray the foreign diplomatic and consular expenses, and the charges of our courts in foreign ports, and the costs of destitute seamen. Thus the whole currency needed in this country would be legal tender United States notes. The bullion mongers would lose; the merchants and government would gain.

Having restored the law to its original shape, it proposes to raise money to pay the pressing debts due to depositors and gold-bearing bonds, the pay due soldiers, and other expenses, by issuing legal tender notes, not exceeding

$200,000,000 beyond those already authorized, and to issue $1,000,000,000 of bonds, bearing six per cent. interest, payable semi-annually in lawful money, and redeemable in twenty years in coin. With $500,000,000 of legal tender notes in circulation, they would accumulate so fast with capitalists and banks that the holders would be glad to turn them to profit by purchasing the loans; and I doubt not before the year would expire the whole $1,000,000,000 of bonds would be called for at par. In my opinion, with the present law this amount can never be sold except at ruinous discount. I believe that this disposes of the provisions of this bill, which were intended to restore the committee's project, and which was sanctioned by a large majority of the House.

The balance of the bill refers to State banks, and imposes a tax of fifty per cent. on all their circulation beyond onehalf of their capital. This tax is obviously intended for prohibition, and not for revenue. I incline to think it should have taxed all above three-fourths, instead of one-half of the capital. The object of this provision was two-fold: first, to give a wider circulation to United States notes, and thus induce their conversion; secondly, to prevent the undue inflation of the currency. I suppose that such a law would drive at least $100,000,000 of bank notes out of circulation, leaving about the same amount afloat. These, together with the United States notes, would give a circulation of $600,000,000. I believe the business of this country requires that amount. Before the rebellion the paper issues were over $200,000,000, and the coin was at least $300,000,000. I suppose what may properly be called the present circulation amounts to more than that sum. The checks which pass as currency in our large cities are as much a paper circulation as bank notes. They amount to some $200,000,000, I imagine, and almost entirely supersede bank notes in New York and Boston. When it was said that the currency necessary to do the business of Great Britain was near two billion dollars, the bank note circulation was less than four hundred millions. The rest was supplied by bills of exchange.

But in times of suspension of specie payments, banks will expand to an unlimited amount unless restrained by some national law. I can account for the present high price of everything in no other way than by such expansion or the expectation of it. I fear the true amount of present circula

tion is not ascertained. Take, as an example, a very sound, well-managed bank in my own district; it has a capital of $320,000; it holds about $150,000 of United States six and seven-thirty per cent. bonds; it has on short loan $250,000 legal tender; it has $80,000 in coin; and its circulation is $800,000. In an adjoining district a bank with $400,000 capital has more than its whole capital invested in United States loans, and has a circulation of $1,000,000. Such issues must inflate the currency. The people will run mad with speculation, and in a few years a general crash will follow. My proposition would not reduce bank profits below a fair gain. While suspension continues they might hold, as they now have, their whole capital in government stocks, bearing at least six per cent. per annum. They could have the profits of a circulation equal to three-fourth of their capital, and bank on whatever deposits they have. This would give them at least ten per cent. interest to pay their expenses and dividends to stockholders. This is enough

But I ought perhaps to say, before I close, to my country banking friends that they need not be alarmed. There is no great prospect that we shall return to the system I have indicated, nor do much to protect the people from their own eager speculations. When, a few years hence, the people shall have been brought to general bankruptcy by their unregulated enterprise, I shall have the satisfaction to know that I attempted to prevent it.

Mr. Stevens' views in regard to the defects of the partial legal tender system have been fully confirmed by fourteen years' experience, and his predictions have been verified in a remarkable manner. Notwithstanding the defects of the system, however, and in spite of hostile legislation and the existence of the National Banks, it has proved immensely superior to the specie basis or bank currency system, which cursed the country for over half a century prior to the Rebellion, and which the bullionists and bankers are now seeking to re-establish. The people have been brought to the verge of bankruptcy by the machinations of the money power, and the interests of the nation demand that a full

legal tender money system be now given a fair trial. This end can only be accomplished at the polls. The bullionists and bankers, and their tools, are already in the field, manipulating party conventions and caucuses all over the country, to carry out their designs. The masses must organize against them, throw party prejudice aside, and vote for no man for any official position, from the lowest to the highest, who is not known to be honestly in sympathy with the people's cause, and in favor of full legal tender

money.

Monthly Range of the Gold Premium for Fourteen Years. The following table shows the lowest and highest prices of gold at New York, for each month in the last fourteen years. The left-hand column of each year shows the lowest

price, and the right-hand column the highest.*

DATE.

January. February. March.

April.

May

....

1862. 1863. 1864.

1865. 1866.

140

1378 167

par. 105 134 1603 151 160 197234136 144 1021 1042 153 172 157 161 1963 2162 135 101 102 139 171 159 1693 148 201 125 136 101 102 146 159 166 187 144 160 125 129 102 104 143 155 168 190 128 145 125 141 June.. 103 109 140 1487 189 251 135 147 July. 109 120 123 145 222 285 138 146 147 155 August... 112 116 122 129 231 262 1455 148 146 152 September..... 116 124 127 143 185 255 142 145 143 October..... November.. December

DATE. January. February. March.. April.. May.. June... July.

..........

......

1867. 1868.

132 137 133||142 1373 140 139 144 133 140 1377 1418 1325 1417 1373 1403 1347 138 139 140 1363 138 139 1411 136 140 140 1451 1397 142 143 150 147 141 146 141 145 122 137 140 1563 189 229 144 149 145 154 140 145 1333 140 129 133 143 154 209 260 145 1483 137 1485 1377 141 132 137 130 134 147 1523 211 244 1443 1462 131 141 133 137 134 1363

1163|

1875.

1869. 1870. 1871. 1872. 1873. 1874. 134 1363|119 123|110|111|1083|110|111|114|110|112|111|1133 130 138 115 121 110 1124 109 111 1127 115 1113 113 113 115% 130 1321 1101 1163 1101 1118 109 110 1143 118 111 113 114 117 131 1343 111 1155 110 111 1097 113 1113 114 114 115 134 1443 1133 115 111 112 1123 114 1168 118 111 113 115 1168 137 1398 110 1143 1112 113 113 114 115 118 110 112 116 117 134 137 111 122 1113 113 1133 1151 115 116 109 110 1113 131 137 114 122 111 113 112 115 1148 116 109 110 1128 September..... 1303 162 112 116 112 115 1123 115 110 1163 109 110 113 117 October...... 128 131 111 113 111 115 112 115 107 111 1093 110 114 117 November... 121 128 110 114 1103 1123 1113 114 106 110 110 112 114 116 December.

August.......

119 124 110 111 108 110 111 113 1083 112 110 112 112 115

*From the Tribune Almanac for 1876.

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