The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-02-25
DAILY PRESS.
PORTLAND.
Monday Morning, February rs, 1867.


Resumption of Specie Payments.
We expressed week ago some curiosity tn
know what arguments would be urged against
Mr.. Lynch's scheme for the resumption ofspecie
payments. The Journal of Commerce has re-
lieved our curiosity. Mr.. Lynch's bill propos-
es, it will be remembered, after the 1st of July
next, to destroy all the United States notes
now outstanding as fast as they are received
at the Treasury, and TO replace them by new
issue payable in coin one year from date. 1t
also authorizes but docs not direct the Secre-
tary of the Treasury to issue similar notes in
payment of SO much of the public debt, paya-'
BILE in lawful money, as may mature before the
1st of December, 1857. The journal of Com
merce first mistakes this latter date, reading
without its spectacles 1868 for 1867; then says
the act would provide for an issue of towards
thousand million dollars" OF the new curren-
cy; and then inquiries where the coin is to
come from to redeem this promise twelve
months from date. @ i....- "a
As the Journal of Commerce, like the New
York Tribune, has been In the habit ofsaying
that it is in the power of the Secretary of the
Treasury to resume specie payments at any
time, this argument comes with singularly
i'll grace from that quarter. If the Secretary
can make his payments in coin now, why can
he not pay cash on and after the 1st July,
1858? This is a sufficient answer for the
journal Of Commerce, but the case will bear
much closer examination. The estimated
receipts in currency for the next fiscal year
are set down in the Secretarys last report at
291 millions. As the proportion of United
States notes to the whole paper circulation is
about one halt, this would give for the receipts
in greenbacks less than $50 millions. At this
rate 1t would take more than two years to re-
place the whole mass of irredeemabIe notes.
and it would accordingly be more than three
years before the Treasury could becalled upon
to redeem the whole Of the new issue. The
portion OF the public debt maturing before the
lst December, 1867 mot 1861, is 100 millions
OF compound interest notes. If the Secretary
should see fit to redeem these notes in the new
issue, he would promise to pay within the
year 1868 about 175 millions in gold. The
difference between 175 and 1000 millions is
the exact measure of the blunder which the
journal of Commerce has made. -.
In commenting upon Mr.. Lynch's second
bill, designed to prevent undue expansions
and contractions of the currency, the Journal
of Commerce does still worse. The substance
OF MIR. Lynch's scheme is the creation of a
loan of 800 millions, payable in coin al the
expiration of twenty years or in lawful money
on demand, with interest at per cent in coin
The object of the bill is obviously to impart
to thu currency a flexibility which it does not
now possess, by byfurnishing temporarylnvest-
ment at low rate of interest to absorb the
surplus currency without putting ii wholly
out of the reach of investors. The bonds are
to be issued to any person paying their par
value in lawful money. "This plan," says the
Journal Of Commerce, "is easily understood,
and If the term ldwfM money thus to be in
Uested includes national bank note currency,
would be good way of placing the latter at
interest, with good security, whenever it be-
came troublesomep' ..i ...rsbre f.g-
Wonders will never cease! We should
have supposed that anybody who would be al
lowed to write financial articles for the jour
naf of oomnIerce, would huvo known that
national bank notes are not lawful money;
that the banks are required to redeem their
notes in United States notes which with the
compound interest notes and no others haye
been made legal tender by the statute; and
that legal tender and lawful money are con-
vertible terms. Of course this would be a
good way to put greenbacks at interest, when
ever they are not needed for the purposes of
trade That is precisely what the bill intends
to do-to relieve the business of the country
of the pressure of an excessive volume eff cur
rency, whenever 1t is found to be really ex-
cessive. i4i ias '-' '
In short, the argument of the Journal of
Commerce against the one bill is founded on
the mistake of a date, and against the other
on ignorance of the meaning of the words
Slawful money" To these prime blunders
must be added a general misconception of the
purposes and provisions of the bills. Such
criticism is not instructive. If there are no
better arguments than these to be urged
against the bills, they ought to pass. If a bet
ter or briefer method of reaching specie pay
ments can be devised, we shall be glad to see
it. If not, we hope the Fortieth Congress
will adopt this at an early date. ..4-
. -.