New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-01-31

tbrouoh n long series Of years, $500, COO or
saoo 600 of its notes. So the banks Of New.
ENGLAND. through universal confidence, were
able to maintain for many years, at par,
circulation of over thirty millions, on basis
OF only five millions OF coin.
Now tbs Government has to the fullest OK.
tent the first of these elements of credit, viz:
ultimate solvency-the power of ultimate pay
ment-based upon its capital, which is nothing
less than the whole property Of the nation.
This supports its bonds. But to maintain its
paper money at par, it must have the other
element of credit, which it has not, viz: the
coin with which to redeem, at will, any portion
of its paper of which actual payment might be
wanted. Now, supply that indispensable ole
ment of credit, even to moderate extent,
and all would be changed. Thirty millions of
coin, skillfully used, would maintain at or near
par three hundred millions of paper. A given
amount of coin would have even more power
in the hands Of the Secretary OF tho Treasury
than ID the possession of Bank, because when
a Bank fails to redeem it is broken, and its
bills become comparatively worthless. But the
Treasury Notes, bJing illegal tender" would
only partially depreciatc, and the Secretary
has power to use his coin at will to produce
the greatest effect. while his Bank cannot be
broken.
Even if this power were not usod the
knowledge of its existence-the knowledge that
the Secretary could at any time come into the
market with several millions of gold aud de-
maud bis Greenbacks for the gold at his own
price. would be a caution to spectators. The
small supply of Greenbacks lately shown to be
held ia New.York, shows how moderate a sum
in gold would raise them to their duo credit.
If the existing depreciation Of our paper
money were owing as in the case OF tho Bank
paper of the country from 1886 to iS43) to an
enormous balance against us, in our trade with
other nations, and adverse exchanges, actually
drawing down to q minimum tho stock ot CON
in the country to pay those debss which we
had failed to pay in the products Of the couu-
try. then. indeed tho case would be- for the
time hopeless. There would be no way for us
but .hat which we then passed through: first,
general bankruptcy. and then slowly working
our way up to solyency-by producing and cell
ing more than we bought and 30 earning back
the gold.
But il is not 30 now. The specie in the
country is now estimated at $3.50. OOO, 600, and
that bears higher proportion to al! tho paper
-. IL hal
been maintained during the prosperous and sol-
vent years of our national life.
The difficulty 10 not that We are without tho
coin, but that (by Oh anomalous and suicidal
process) the specie or real money oil the coun-
try has become totally dssociated frvm its
credits. The rold base has been washed from
beneath the superstructure. and tho materials
must be gathered again and reset into frmcr
foundation than before
The suspension Of tho Banks annihilated or
took from the uses Of commerce and finance
one.haf perhaps, Of tho specie Of tho country,
and locked it up aud thus took from tho paper
money of the country ITS main support aud
life. Coin became an article Of merchandise.
the premium on which was only the measure
Of the depreciation of the paper money. As
the Banks then substituted tho egnl-ten1er
notes of the Government as their bass, aud as
their notes could be no better than those with
which they redeemed them. all tho paper
money Of Banks aud Government went down
together 10 q real discount Of 30 ~ 40 per
cent
In thi, deprecated money. tho Government
is spending (by authoritative 'tatemen'S)
81, 800, 600 day, or $1,000, 100000 Il year;
and--as it will in the average pay as much
more for goods us its paper is worth less than
par-the loss to the Nation incurred by this
depreciation is not less than $500, 900, 0CO ~
$500. 900, 900 per annuin. How TO overcome
this LOGS, or so much of it MS may be, is the
problem. The great effort must DO TO raise the
value Of the Government paper. How shall
that be done
Mr.. Chase must have S25 900, 900 or
$30, 900, 900 Of specie at any cost. lie would
have had it now under the admirable provision
for requiring duties in gold, but for tue dam
aging fact Of the outstanding notes which
could not be repudiated.
He will still have that sum after the lapse
Of year or more by tho excess of duties over
interest. But the country Cannot wait. Ho
must buy or borrow it now. Tho Banks could
do no wiser, juster, moro legitimate act than
to tender Mr.. Chase q large sum, say $780,
OOO 900 of coin, to be repaid when the surplus of
customs over his interest should enable him to
do so. In thus furnishing tho means of help
ing to restore Government paper to par, they
would as bankers, on business principles, make