New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1866-09-22
THE WAY TO SPECIE PAYMENTS.

T. tls Editor Of Tie N j. TT.5sae
SIR You are pleased to say that in your experience,
if you wished strengthen your financial position,
you used tho funds on hand to pay your debts This is
wise. 1t not only gives the public confidence in your
ability but In addition speaks in language not to be
misunderstood, that you intend to pay.
have not been silent listener to the arguments in
TIE TRIBUNE in favor Of sound currency. believe it
is the duty of all governments protect the people
AGAINST paper money convertible into gold and silver
without loss 70 the holder We have, at this time vol
Of paper money greater than needed to mako the
exchanges betWeen and man. Consequently, prices
approaching the clouds, TO explode IN
This inlatiOn caused by al excess OF paper Is seen IN
Imports aad Exports BY high prices, We add largely
the cost Of production and Notwithstanding we have
tariff equal b 90 per cent IN god yet tho currency has
oyernddcn the tariff and the Imports, based upon gold,
largely exceed the Exports counted IN paper. Our cur
reucy BY its redundancy renders The United States the
best market in the world 20 sell in and the Ike cause
makes It the poorest TO buy IN.
Now there appears 10 be but one remedy for the
evils complained Of and that is 20 reduce, in some way
tie volume Of paper and al the same time increase our gold
and silver The redundancy Of paper causes speculahng
and speculation conducted, borders very closely
upon Gambling Indeed. common has 1t become In
tina, portion connected with foreign
coutrestbat the porter is not in naming price
lin currency without hTt knowing the price of gold. The
moment tho bargain is made for currency, the merchant
must hedge By purchase OF gold TO secure his currency
The same is true Of party buyng Tor gold the moment
his purchase made he must buy the gold TO secure him
AGAINST loss Consequently all business has, IN the very
nature of things become hazardous.
IL appears 70 that the fault lies in having volume
OF currency greater than Is required end upon the well
settled Principle that the currency represents the property,
aud the property the currency although II is not neces-
sav 20 amount currency equal 60 the property
rerescntcd as II is believed that in currency by its
lctyity will represent and move 80 IN propertyl yet
il will be perceived that If we increase the voGne Of
paper, without corresponding lucfease OF properly, IL
must Of necessity require more money TO represent
specified amount Of property.
spch supp,se 10 be our present position and We my
- With .
fact that money is cheap Now II ain correct II the posi-
ton taken, the cause lies In an over issue on paper
money not convertible into the currency Of the world,
without loss the hodcr To remedy tAis state OF things
10 my mind there bat way ana That ~ oreduce the
volume Of plpermoucy and increase lhe goa ana sFer
aud the Government are IN the receipt OF large
auourt Of goli over aud above that required
10 meet the interest the public debt and this surplus
created by oyerssue Of paper let the Secretary sen
monthly by auction, after public notice OF such sale, all
the gold received during The previous month exceeding
thai required Co pay interest the public debt Sell the
tor eenbaeks ony and as greenbaeSs are basis
Of banking seal up the amount SO ivcelNeu aIu
not ain pay them out This would gradually reduce The
volume OF paper increase the volume OF gold And,
under this system gold aud paper must OF necessity APP
proxuae in yolue Tho effect would DO 10 reduce the
lcurseucy) pnee Of the imported goods, ana ~
lie same time, reduce tho volume OF lmPorA-
lions. The cost OF home production would be
poportonby reduced aud brought 10 the Shipping point
And whom the imports and exports become balanced IL
would be an evidence that the currency Is Deeoung u
justed with that Of Europe including the American
Tariff and then specie payments would be upon US IN
spite of legislation. This plan IS SIMPLE ana just sen
adjusting m ,chine which if left free TO act must in
reasonable time SGT us from the banks andspecuators
have no confidence In discretionary laws. The Sec
rotary is not proof against the pressure OF sPecus.
Whatever we have DO positive and then the people
will work up 10 IT, Al
rive do not object to this: though we think it
would be better first to buy up and cancel 100000
900 of our bearing debt so as to appreciate
the market value of our bonds. Were these above
par as they should and would be not so abundant,
we might fund and withdraw the Greenbacks ct
pleasure. Ed.