The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1866-11-24
aPECM PAYMENTa,

Specie PAYMENTS. 5-i
to Resume-.-The Fatal Consequens
ces' OF Such an ExpsFlment...sTho
Obstacles PtFat to be Got Out OF the
Way.--EtV0 Years . Reasonable Time
for rReaumptIOp---yVhn the Country
Requires.
From tte CSnetnnGR Ga+sts. q
We clip the following paragraph
from an article in the New York I5i-
6ttne:: 3
n Now. then, is the time5if Congress and the
sumo specie payments. Those who are not
ready never win be- II q year and half OF
minIshing debt, have not snffIoed for prepar-
better.
Right of, the Tribune would pay spe-
Gle for paper. That would be an excel
lent performance, II it could be accom-
plished. Bntthe Tribune, unfortun ate
ly for the specie payment theory, does
not point out the way. The Secretary
OF the Treasury has about SO, ,OO0, 600 of
gold on hand. That would not redeem
1861, 100000 of paper. In ordinary
times bankers can maintain specie pay
ments with 25 per cent. of coin in their
vaults but this can only be done when
people do not want the coin. Suppose
Mr.. McCulloch should announce that
on the hrst of January he would paw
coin for greenbacks, and he had on hand
applicable to the purpose, S2O0, 600 600
in gold. What would be the result?
The people would draw the gold and
keep-It. 1twould go into their pockets
so deep that it would not be seen again
for long time. He would then be
without gold with over $500, 200, 600 Of
paper money on hand. Thus the specie
payment undertaking would be
brought to a close in one week.
In the same article from which we
have copied, the Tribune urges the Inn
mediate enactment of bankrupt law.
That would certainly be wise precau.
ton. 1t would be needed, If the ITi-
6tt1te'S advice should be taken, not onlV
for the people, but the Government.
The latter would be the worst bankrupt
concern OF the whole. The S'specie pay
menr performance would of course
break the banks. These have outStand-
ing S295, 1000, 600 of notes for the prompt
redemption of which the Government
stands pledged. 1t holds as security
United States bonds. These It would
offer for sale. Who would buy them?
A forced sale for specie or its equiva-
lent would put the price down to coo on
the dollar. Who would make up the
dtherencef Bank stoclSholders3 But
these are already bankrupt. Where
would the Government get the money
to redeem National Bank notes, or its
own tndebtedness2 From taxes? The
people would not be able to pay taxes.
You can't squeeze milk out OF a turnip.
There never was greater nonsense
than the talk about an immediate re-
sumption of specie payments, and If
utterly impracticable policy In his
forthcoming report, it would only prove
him entirely unfit for the position he
occupies, 1I y
Every man who has a correct f1nan-
ciai idea knows that a large contraction
OF the currency must precede resump.
ton OF specie payments.
Let us see what the volume of cur
rency Is:
Compound Notes 90
ksTaGtionai CuErenc 2I5ss0l0 90
Satlonal Bank NoLeS.,............. 295 600 900 90
State Bank Notes.................... SOO0OOOO 90
Total. ss91 295, ,sS5 90
Now, experienced financial men need
not be maintained on $500, ,OO0. 600 of
paper money, with such state of bust
ness as would result from an attempt
70 force the price of gold down to par.
before we reach specie basis, there
fore, 1t is seen that over $500. .000, 600 of
paper money would have to be retired.
This would render it impossible for
larger debtor than the Government.
Its obligations maturing within the
nexttwo years, Including greenbacss.
foot us follows:
Compound Interest bl2, ,14O 90
, " 0l5 S9O 90
g g
Fractional Currency ............... '0I0 8s
s27 299, ,1S4 81
It is supposed that the 7-3Os NAV be
converted into long bonds, and thus
s124, ,OOO, 900 of the debt soon to mature
be put out of the way. But the talk
ABOUT a resumption of specie payment
VIII prevent such conversions. Hold
ers OF these bonds have the option of
demanding gold bonds or cash at ma
thrifty. Now If the Government is like.
" TO pay specie in 1867 or 1868, the
7-S0s, will be held till maturity and cash
be demanded. Our 5-20s are now SELL
ing at equal to 81 in gold. They would
not be higher than that under the state
OF things that a premature effort at
specie payments would bring about.
Most likely they would reach much
lower figures. The Government (sup-
posing It resumed specie payments)
would at the same time pay 100 in gold
for Z. .30s. With that prospect in view
people would not be likely to convert
We have thus given facts to show the
abSurdity Of the proposition to FIX an
early day for the resumption of specie
The eject, however, of the talk about
an undertaking which is really an inn
possibilitY is damaging to business, and
TO these high sounding promises, with
very Indifferent performances, we are
indebted for the frequent fluctuations
IN prices, and the periods of imitation
and depression.
One year ago we had the same talk
we nave now, and yet thereis more pa
per money now than there was then,
the increased issue of National Bank
currency having exceeded the with
drawal of legal lenders.
But we have now seen the end of in
hation, unless Congress should author
lie further issue of National Bank
notes. This is the first important step
In the direction of contraction. In adj
dtdon, the Secretary of the Tresury IA
authorized toretire q, 900, 900 per month
IN greenbacks; and this authority he is
exercising. This is we'll. 1.-The will
thus absolutely retire and cancel the
currency it Will bring the country to
specie payments gradually and more
certainly than It can be reached byI
spasmodtc efforts to knock the bottom
out of the gold market.
~ required five years to initiate the
currency to its present dimensions and
70 create our great national debt. If
we can contract this currency and get
our debt within controllable limits
Within five years, the result will be one