The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-01-04

deDts. Iaklng thls as the condition Which II is
necessary to restore, it is easy TO disnose OF
great mass of cloudy Crudites put forth by rea-
soners whose PRIDE of singulauty, or lear of inn
mediate consequences lead them to oppose all
measures Tor the withdrawal Of the lega-tender
notes. Once grant that these notes are ultimately
to be withdrawn, and that their redemption is to
be one OF the principal evidences of restored
health, and there is only left a question OF tde
most suitable time and the most appropriate
means. When it is said that the withdrawal OF
the greenbaCks will reduce prices and infict loss,
1t Is not needi1l TO dispute the conclusion, but
only to ask whether it can eUer be done without
causing decline in the value of property? If
not, why should we be making Try faces at the
medicine which, sooner or later, we shall be
compelled to take?
Assuming, then, as proved that the greenbacks
ale to be redeemed and retired, the question
next in order is, whether 1t shall be done at
once or gradually To this question there are
two sides; but 1t will not be difficult, we think,
TO find on which the reasons preDonderate. The
main argument for the immediate resumption of
specie payments is, that the business of the
country cannot be conducted with advantage
while 1t IS sliding down declivity of gradually
decreasing prices. The soundness OF this idea
cannot well be controversies tor why should
men purchase or produce commodities to be
sold in a ia ling market? But the eXaggeration
OF truth may be as misleading as a downright
error. There Is not farm or plantation IN
the country but will be equally cultivated,
whether prices advance or decline. The price
OF cotton and of other Southern staples will,
courage production.
The price of grain, which is our chief staple,
is regulated by the foreign demand; its price in
Liverpool determines its price in New York. As
the cost OF transportation will go down with the
general decline, the farmer viii receive for his
grain nearly as much value, though less nomi-
nal money. Manufacturers could protect them
selves against serious loss by the smallness of
their production, which would, in some degree,
correct the misChlevous effect of the tariff which
diverts capital and industry from more profitable
branches Of industry. 1t is as certain as any
thing in the future, that in few wears the tariff
will be recthed sand reduced, and 1t is well that
meantime there should be some check to the
stimulus OF high duties in drawing capital into
braches of business not productive enough to
be sel-suppoTting.
Having pointed out these mitgatons of the
undeniable evils of a falling market we will
state some of the objections to an attempt to
return Immediately to specie payments. We
assume that ii can be done only by the with
drawal OF very considerable proportion of the
legal-tender notes Gold and silver will never
circulate side by side with any currency not re-
deemable in the precious metals. Neither the
Government nor the banks will redeem in coin
so long us the currency is redundant. When
the currency is in a normal state, men wanting
gold take bank notes TO the institution which
issued them and demand payment. But till the
greenbacks are withdrawn, the banks VIII pay
III them; and gold can be procured only by pur-
chasing it at premium. Even the immediate
repeal OF the eaal-tender act would not restore
oppressive use OF Their legal RIGHTS Legislation
can no more control the natural laws III this
respect than in others; as is eXemphded by the
history OF our New York State banks.
Our Constitution Of lS46 was so rigorous and
stringent as TO ordain that no bank should con-
tinue to do business longer thau it redeemed in
specie; and it prohibited the Legislature from
directly or ind rectly permitting any bank to do
so. When the financial crash OF 1857 came, the
State banks did suspend; and, by continuing to
DO business demonstrate the poWerlessness of
the legal enactments, even though taking che
toIm OF solemn constitutional proyisi ons, to
maintain a specie currency against the neces-
sites OF society. The State courts invented
subtle and ingenious reasons to explain away the
undoqbed meaning of the Constitution; and
both before and after Their decision, the notes of
the suspended banks continued to circulate pre-
Cisely as before.
For similar easons the greenbaclls and legal
tender notes would remain our sole currency,
until other changes had taken place rendering
resumption possible. The choice would lie be-
tween the currency and none; and as it would
remain good ior the payment OF taxes, to the
amount OF two OF three hundred millions year,
it would have an element of value sufficient to
keep it in circulation; lust as the nasty, sticky
posage-stamps supplied the place Of small
change, till substitute for silver was issued by
the Treasury.
We regard it as clear-though the reader,
perhaps may not think it sufficiently proved
that the mere repeal OF the legal-tender act
would not restore specie payments. But if he
viii not accept it conclusion, let him at lea It
prant it to us as postulate, and accept the con-
sequences which must follow from its admission.
If the immediate resumption OF specie payments
cannot be compelled by the repeal OF the legal
tender act, then no sudden resumption is posi-
ble for the entirely conclusive reason that there
is no possibility OF vii ndrawlng at once a large
portion Of the legal tender notes. The money
which is paid into the Treasury in taxes is pald
! out again in the current expenditures and inter
est on the debt. 1t will thus be kept in circulA
ton till the Treasury can borrow other money to
use in its stead.
| Before there can be redemption there must be
heavy loans loans, in the first place, sufficient
! to take up aud dispense with the further issue
ois certificates OF Indebtedness and loans, in the
next place, equal to the amount of the green
! backs redeemed. When the Secretary of the
| Treasury comes into the market asking a loan
! tor this latter purpose, he will thereby produce
a stIlngency which will render the success OF the
+ loan moIe or less slow and difficult If he should
! apply for enough for the immediate redemption
! of all the greenDacks, he would probably ge
! nothing. The thing is not susceptible of being
! done except by some gradual method.
AS the withdrawal of the greenbacks must
! necessarily take time, it ought to be begun al
! once, ana prosecuted wi steadiness and eau
! ton. The particular steps require more space
than remains to us at the end Of an already Ions
article.