Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-01-18

Total responsibilities Of the hunks. G52,9ll 40
Totnl Government ditto. ~ above. 6S9,GOI, G93
.... -
Total specie liabilities. ....Sl,3i ,5l9.lI3
The deposits are q matter Of estimation,
as no returns exist Of their present amount.
but judging from the past, Us the deposits
exceeded the circulation when there were
no public deposits, we have no doubt that
the amountnowi is more than $3.50, 900, 900,
the deposits in the banks of the city of New
York being nearly half that sum.
And now for the means of redeeming
this vast amount of thirteen hundred mil
lions. II the Government can command
specie enough to pay its coin interest, that
is all that can be expected. Of course its
entire currency can only be redeemed by
being taken in for taxes, or stocks issued.
1t can all be withdrawn in this way, and
in no other. 1t can be annihilated as cur
rency, but never converted into specie.
But how is it with the National and
State Banks: What are their specie re-
sources: The New York City banks,
which stand as the base of the great pyra-
mid Of bank paper, and are by far the
strongest Of any in the country, owed on
the 2Sth Of October
For circulation.
For deposits
Total .Sls5,OOO.OOO
And had in specie. ................. 100000 u
equal TO about eight cents on the dollar.
The banks in Philadelphia owed
For circulation and deposits ......... si2.OOO.OO
And had in specie. .....--......... l,OOO.OO
-cuunl TO two and one half cents oil the dollar.
The banks Of Rhode Island -....s 3,OOO,OO
Aud had In specie. 4s,eOo
equal to Il little over one and 4 half cents on
the dollar.
The National Banks Of Chicago. the great com.
merciul center OF the West, owed Sl4, 00O. 900
And had specie on hand October o.. 1896
equal to Il little less than two and n half mills
on the dollar or one fourth Of one per cent!
These may doubtless be taken as sam
pies Of uanks throughout the nation.
They have sold off their specie, and 1t has
gone out of the country. The Suffolk
Bank in Boston, which vas the great us
todian of specie for the banks Of New
England, sold off its treasure and realized
something like a million of dollars for the
mere premium, which goodly sum it di-
vided amongst its " stockholders!
The average of specie held by all banks
Of the Union for some years prior to the
war, was Is cents and 3 mills on the dol
lar to their deposits and circulation but
at the present moment they probably do
not hold more than third or fourth part
Of that proportion. How then are they to
resume specie payment? Experience has
shown that when our banks get reduced
to about Is per cent. Of specie, they sus-
pend payment, but they cannot resume
again unless they have as much as % to
SO per cent. on all their immediate liabili-
ties.
Where is the specie to come FROM 1t
has been flowing from the country ever
since the suspension, and will continue to
do while our currency is so immensely
expanded. We have, as Mr.. McCulloch
states, and as appears from the figures we
have given, one thousand millions Of cir
culation ; yet two hundred and seven mil
lion was the largest amount ever known
prior to the rebellion. From these facts
we can form some idea Of the difficulty Of
the undertaking to restore specie pay
ments, and yet it must be done; and the
sooner, consistently with the business in
leEGSlS VI III SouibA bhS oStASis Duh
how, and when;
How: BY the gradual contraction of
the currency until it is equal to the natu.
raj volume, which the country requires
and this will be indicated and determined
by the gradual fall Of gold until it is on a
par with paper. There is no other way,
and none other need be thought of. If
we are not ready to do just this, then the
imitation, with all its evils, will continue.
The Government must take in a large part
Of its greenbacks, and the banks a large
part of their circulation. Thus and thus
only can the object DO effected. tttHt.-
But when? Congress should move at
once in the matter. for it was by its action
that the laws of value were suspended. It
should determine forthwith that the thing
shall be done, and fix the rate at which
the greenbacks shall be withdrawn-so
many millions per month. Then every
body would know what to depend upon,
and what to do. As the greenbacks are
withdrawn. the banks must Of necessity
contract their issues. because the law COM
pels them to keep "25 per cent Of lawful
money" upon the whole amount of their
circulation aud deposits, and therefore as
the greenbacks disappear, there will be no
lawful money but specie, and to get specie
they must contract their circulation, 80 as
to stop the export Of gold, and cause, to
some extent, a relux of that article from
Europe. g-H ttEE. aEe'
With this policy fully established by the
action Of the Government, our whole sys-
tenn would be gradually changed, prices
would be reduced to their natural point,
the industrial and financial interests of
the nation placed upon a sure basis and
permanent prosperity secured. '"-r.