CONGRESS, UNITED STATES. 



L93 



was the legal and established policy of the 

 rinnctit uhni the notes were first issued. 

 I have only to say, very briefly, that 

 tin- viti ions modes, to none of which do 

 1 intrii'! to commit myself nntil the whole sab- 

 is finally discussed, by which this can 

 easily, without trouble, without difficulty, he 

 accomplish! <!. There are three modes that 

 have been proposed in debate in the Senate, 

 and a multitude come to us from the people, 

 but I will irroup them into three classes. 



u Thero is, first, the proposition to accumu- 

 late gold in the Treasury with a view to the 

 actual redemption of our notes'in coin. That 

 is supported by two bills now before the com- 

 mittee : one introduced by the Senator from 

 Vermont (Mr. Morrill), and the other by the 

 Senator from New Jersey (Mr. Frelinghuysen). 

 "\Vliat are the objections to this plan? They 

 seem to me to be these : In the first place, any 

 attempt to accumulate large masses of gold in 

 the Treasury, lying idle to await some future 

 event not fixed by act of Congress, would not 

 be a wise use of the public moneys. In the 

 next place, I entirely object to conferring upon 

 the Secretary of the Treasury the power of issu- 

 ing one hundred millions or any lesser sum of 

 six per cent, bonds with a view to buy gold to 

 hoard it in the Treasury to maintain resump- 

 tion. I believe that it is impossible, in the very 

 nature of things, to maintain the resumption of 

 specie payments -at all times and under all cir- 

 cumstances ; and if any thing has been estab- 

 lished by modern experience, it is that all a 

 nation can do that issues paper-money is to 

 maintain it at a specie standard in ordinary 

 times ; but, in times of panic, such as by peri- 

 odical revulsions come over . every country, 

 specie payments cannot be maintained. They 

 can scarcely be maintained in England, and 

 are not now maintained in France, although 

 they approach them. Therefore, every plan 

 for specie payments ought to have some pro- 

 vision for the temporary suspension of specie 

 payments, or some means by which in times 

 of great panic and financial distress there may 

 be a temporary departure from the specie 

 standard. I say this not that it ought to be so, 

 but simply as a matter of demonstrated expe- 

 rience shown by the history of almost all com- 

 mercial nations in Europe. 



" The second plan is the actual payment of 

 the United States notes and their cancellation ; 

 in other words, the plan of contraction. In 

 the first place, this plan while it operates does 

 so with such severity as, in a popular govern- 

 ment like ours, to cause its suspension and re- 

 peal. Undoubtedly, the most certain way to 

 produce specie payments is by retiring the 

 notes that are dishonored, paying them off, 

 taking them out of circulation. But the trouble 

 is, the process of contraction is itself so severe 

 upon the ordinary current business of the 

 country that the people will not stand it ; and 

 in tliis country the people rule. The policy of 

 Mr. McCulloch, already commented upon, if it 

 VOL. xiv. 13 A 



had been continued further, would have on- 

 doubtedly brought ui to a specie standard, 

 but with groat distress, great impo\*-rihhment, 

 and with more diih'culty than was really neCM- 

 BarT to accomplish the object in view. 



" These are the difficulties that occur to me 

 as against these two policies. There is a tliinl 

 plan. This plan, which in my judgment pre- 

 sents the easiest and best mode of attain inp 

 specie payments, is to take some bond of tin- 

 United States which in ordinary times, by cur- 

 rent events, is shown to be worth par in gold 

 in the money-markets of the world, where 

 specie is alone the standard of value, and au- 

 thorize the conversion of notes into that bond. 



I again appeal to the Senate to now firmly 

 take its stand against any inflation of paper- 

 money under any 'circumstances, under any 

 provocation, or any plea. This alone will do a 

 great good to the country. But if it will go 

 further if the Senate will lead the way to 

 some wise and practical measure, looking to a 

 redemption of the pledged faith of the United 

 States, the people we represent will have cause 

 to be proud of the political body which they 

 have so long honored. I believe, sir, that no 

 act of the Senate would so much inspire confi- 

 dence, give strength to our business men, re- 

 vive our industry, as by a decided vote on these 

 propositions to show that our firm purpose is 

 to take the road that leads to specie payments 

 and a restored currency." 



Mr. Logan, of Illinois, said : " Mr. President, 

 if a return to specie payments will cure all our 

 financial evils, why not come to it at once? 

 If the doctrine advanced by its advocates be 

 true, the evils resulting will only be temporary. 

 When our personal health is at stake we swal- 

 low the medicine presented by the physician 

 that we may regain our vigor and strength. 



" If the doctrine advanced by specie-pay- 

 ment theorists be correct, why not give the 

 medicine at once ? We have the power in our 

 hands : repeal all laws which make any thing 

 but gold and silver legal tender, and restore 

 these metals to their former functions of stand- 

 ard value. Government will have a little 

 trouble, perhaps, to take np her greenbacks, 

 and commerce will certainlv have to pass 

 through some narrow straits ; but, according to 

 the theory advanced by learned Senators, the 

 clear and open sea is just a little distance ahead. 



" But, sir, the admission which the advo- 

 cates of specie payment make here and else- 

 where, either directly or indirectly, in regard 

 to the supply of the precious metals, seems to 

 me to be fatal to their theory. 



" How many are there who will contend 

 that the supply is sufficient to meet the wants 

 of trade? How many are there among our 

 national legislators ready to face the storm 

 which would result from a shrinkage of prices 

 so as to correspond with the amount of p-ld 

 and silver which can be brought into Circula- 

 tion. Why, sir, in a ' Memorial of the Cham- 

 ber of Commerce of New York ' which lies be- 



