The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-11-20

value Of the paper would b preserved In much greater
purity than under any system OF coin I" =.
NIB. HOLLAND THINKS THE BULLION STANDARD CAN
BE RESTORED WITHOUT DIFFICULTY.
MI Holland delivered paper 70 the comM ,cn IN ~
thus expresses hts opinion" can ventuie 70 aea, ~
practical man of business that there VIII DC little
any difficulty in carrying into ehect that VIII not
unnecessarily cramp circulation that 1t will not Impede
the ordinary measures either Of government or tne
mercantile community; but that on TIE contrary - VIII sa
restore order and harmony TO the system and give 70 Inc
country Wehat all partiesTR Yish rs welfare aesIewa
Ao and efficient standard OF valuevarialie il Is true
IN certain degree, but less variaol thah any s'aAu'1
which any country has ever yet established
THE OPINION OF THE COMMITTEE:
Your committee will give their eascns ior recon-,
mending the arrangement which tnsy n~e sugges'ed
for regulating the mode in which gold shall 90 Issued N
exchange for bank notes between Fetruar 1880, and
The committee consider 1t necessary y Ak definite
period at which the bank shall BIO uncer TN oogauon OF
issuing gold at the mint price, and staldard DO tnus
established TO which the value OF the PAPER currency
shall conform and by which its issues shall Dc
peace fixed period for the return 20 payments IN spe
cie and when It has consented 10 further suspension OF
them has expressed opinion that thdr resumption
was highly desirable and has assigned the reason for
continuing the restriction the exp'dlensy OF enabling
the bank 10 make such preparations 70 sne
and experience might appear most eedient for enabling
them to resume payments cash without public incon
venience
ing the further postponecnt OF thse payments TO de-
wise some additional security that Preparations shall be
made for their resumption, TO preyqt an impression on
the public mind that further suspenons Will take place.
and TO induce gradual accommodation OF commercial
transactions 70 system OF currcncywhich being long
discontinued, would not DO s1aaelg rosamea without
security will BIO best provided by rNuiring the bank 70
revert at carly period to that tinciple on which,
previously the restriction act thci issues were rcgu
therefore, that time having been all we'd for the repay
ment OF q portion OF the advances government the
bank shall undertake at given perd TO deliver gold In
exchange for their notes in the manner already do
scribed.
THE COMMITTEE UNDECIDED AND ,OMEwHAT MUD
DIED IN REGARD TO RESTORATION.
Between the present time and thsbeginnng OF the
year 1920 the committee cannot anticpte operation
OF any of those causes which affect he value OF the
precious metals so extensive as 70 fevent the bank
from counteracting the effect Of thm by such rcduc
ton of their issues as may be made Without producing
public inconvenience.
present the demand from the bank which will have to
deliver it at that price, will necessarily be very limited
II in the interval any causes shall afec It and produN
in its price, the bank must In ha case contract its
paper either positively compared with It's present
amount, relatively to any increased demand which
there may be for IT. and thus by increasing It's value as
currency proportionaely diminish the inducement to
demand gold.
1t may objected that the adoption OF his suggestion
appears recognize departure from the ancient stand
ard Of value but recognizes no otherwise than il
at present practically exists recognizes for very
limited period, and with no othe view tim to provide
for the gradual return to thai sundaru the deviation
from which 1t acknowledges
The committee trust tbd they have sufficiently OK
planed the grounds on Of that.
of value at tho earlst period the ank should be re-
quired to deliver standard gold in exchange for their
notes.
They do not express any preference f the system OF
bullion payments that of paymonl in specie alb
stactedy dor are they prepared % recommend them
as pernancnt substitute; but th consider them the
best mcpns Of facilitating and insurng the resumption
Of payments In specie with the hast public inconye-
nience. They Of opinion that witn the ancient
standard Of value in this country has be 70 established
the great mpedimcnts to Return 70 cIi 'ner system
will be overcome and it will 90 "a .ne Possr OF the
hank or of individuals by fixing the advantage 10 "a
vaah,o state Of exchange to increase the supply o. "a
precious metals In tie Ioun"y W any eAsoas W "u0A
they are likely TO bc>cqu''oa'
rur rouNfTEE COMPLETELY BEFoGGED.
yanr commitSc aware that it may be objected to
tho nlan q. b.1on payments which they have recon-
mendcd a. that by necessarily continuing the notes
iaow ~ pounds in circulation continues the present
to the crime Of forgery; and secondly. that
~, diring the presentation of large amount OF notes
in and for gold gives to the possessor OF notes to
tdt amount an accommodation which the holder OF a
smaller quantity will not possess On the first of these
objections your committee observe that i'll scarcely pos
sblc TO calculate on a resumption of specie payments
accompanied with the total exclusion Of the small notes
at period much, IL at all earlier than that at which it
may take place. II the Recommendation Of the committee
be adopted When the Legislature has at former periods
contemplated tho removal OF the restriction, the ncces
sy of continuing the circulation OF the small notes for
some time subsequently has been forcscen and Is at
present provided for by law It Is that after the
sumption OF cash payments the amount OF small bank
notes in circulation would probably be diminished; but
there for concluding that tho ternpta.
ton forgery which depend on consideration or
risks and profit, would be diminished in proportion to
the easc OF those notes. provided they were not alto
gcthr excluded The force Of this objection will also DO
csscned proporionatey the degree Of which
may attend the attempts that at present making
devise means Of rendering tho imitation Of bank notes
that the plan recommended by the commissioners ap-
pointed for nqurng into the mode OF preventing forgery
oil bank notes may be expected to b3 in full operation
about thrco months and they have received from two
scientific members Of that commission (Sr Joseph Banks
and DR. Woast0n the satisfactory assurance that their
confidence In the increased security which the form
Of note will afford, well by creating fresh obstacles TO
successful imitation and by gvinga obvious a-
cty TO the public in detecting any attempt TO give cur
rcncy TO forged notes. has been confirmed by the pro-
gress OF their inquiry and experiments since the date of
their report communicated to Parliament
With respect TO the second objection your committee
mend is by securing control over the quantity OF the
circulating medium, to regulate the value of The WHOLE
object is effected the holder OF notes. to whatever
amount, has security for their value which, without
this p he would not possess during the interval which
must preccde the resumption OF cash payments
Should the House determine 70 act upon the recon-
mendation OF the committee will be expedicn TO
tnue the act which passed in the present session
strg the further issue OF gold coin from the bank.
The propose interference with the laws which regu-
tic mint c0nceving IL desirable TO RETAIN CHI ok
C0ntrACon Oh the issues Oh the Dauk.
the power which individuals at present possess Of
ceying coin from the mint in exchange for bullion with
out loss reduction, ut the rate Of f3 It's lloyd Per
ounce
They recommend, not as an appendngc to the plan
which they have suggested but polite measure un
der any system Of currency the total repeal OF the laws
which prohibit the melting or expectation Of che coin Of
the realm. The committee conceive II to have been
clearly demonstrated by long experience that they
wholly Intellectual for the object for which they do
signed that they offer temptations TO perjury and fraud
and give thoso who violate the law unfair ADVANTAGE
over those who respect II.
THE BANK OF IRELAND READY TO RESUME.
Your committee have received an intimaton from the
directors OF the Bank Of Ireland that they shall be
prepared TO resume cash payments six months after the
resumption by the Bank of England. In making this
communicates the directors contemplated a return &c
payment in specie but tho committee have the salts
faction stating @ the Housc, the authority OF the
governor ii the Bank Of Ire-,d, whom they had an op
portuty Of personally cumming, that there Is
TO belle that H. aiiAculty would exist the part OF
the Banl Ireland in carrying INTO effect any regula
tons Of The Same nature with those which may be
adopted with respect TO the Bank Of England