New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-07
RESUMPTION "IN ExTENSO.r

last report of Secretary McCullOcb, as follows:
Matured debt not presented for payment ss23753s IS
United states notes '1cce5a 40
Gold certificates OF deposit. Ii'oi'4O~
Total ..f4ZO0lSzLo ~
The United States have with which TO pay
this the sum of S1l1 ,54O,317 80 in coin, or
little more than One-fourth Lthe amount it is
technically liable to pay. Compare this proper
ton between specie and immediate liabilities
with the condition Of the banks of the country
during specie paying and solvent periods. Inc
following table shows the proportion OF specie
held by the banks of the country to Their dc
mand liabilities, i. e., of deposits, cIculaIioD'
and dues to other banks;
ISIS. :. 1850. ISL 1871: Il, $50 sisSea
liabilities sii'iiSeS9 217Gio532 4fs'2ooTi3 lsIi7s5es
Ratio. About ali. About To- About H. Abouts'
Now. if the banks of the United States could
maintain specie payments with from one-iitth
TO one-eighth as much gold on hand as their
creditors had the power to demand at any
moment, how is it that the United States can
not maintain specie payments when ITS gold
on hand amounts to fourth OF all ITS demand
liabilities When nothing but gold and silver
were legal tender, there never was at any one
time one-tenth enough gold and silver to pay
all the private debts for which payment III gold
and silver might legally have been demanded
Since the Government has therefore more gold
in proportion to its demand liabilities than
either banks or private individuals ever had
during ;pecie-paying times, we ask Why is y
that they could maini0ig specie payments ana
the Government cAnnotl The Bank OF In
gland. at its last suspension in 1871, redeemed
its notes i'm specie until it had reduced ITS
stock of coin down TO Gj04443 with which to
nav liabilities amounting TO G19,l0301S. 1t
suspended only when its specie was reduced
TO onc-thirty-cighth Of its demand liabilities.
WHY should the United States suspend when
It's specie is one-f0Ith OF its demand liabilities!
Is it because ii has only a ninth part
Of the financial courage of the Bank
of England, and only one-half rs much rs our
banks used to have!
Let us suppose Government has made
the olcr to resume. What share OF ats
demand liabilities arc likely to be presented
The gold certificates of deposit and the
matured debt will not be, because Re
sumption will make no difference rs to them,
they being already payable in gold. The trac-
tional currency will no5 be, to any great eX-
tent, because the people need it for daily USE
Whoever should begin TO present 1t would soon
get his surfcit of gold and silver which he
would rush 20 the brokers to sell, knowing that
lac could only realize profit on 1t by selling
Immediately, as the necessary effect OF Re
sumption would be to force rapid decline in
gold The United States notes. therefore,
amounting 10 S357,OOOOOO, are the only prom
iscs OF the Government which would be pre-
scented in any considerable quantity. Only so
many would be presented as would be Deces-
sary 10 satisfy the holders that they could get
the gold il they desired. The moment they
are sure Of this, and sure that this
will continue, they will prefer the
PAPER The exact number of millions
Of dollars tho United States would have
70 pay out in order to satisfy the public mind
on this point. no man can tell. But thst It
would not be many is proved by thc fact that
in specie paving times, banks and individuals
never had so much specie as the Government
now has Had they then boarded THEN specie,
and pIacticed a system of universal distrust
their paper would have been at rs great dis
count rs that of the Government now is.
The object to be accomplished in restoring
specie payments is not a material one, but
purely Il mental one. We are to be saved
by faith IN ourselves, in each other, and IN the
Government. At present, it is doubt, and doubt
alone, that damns us financially. The respOn-
sibe author of this doubt is the Head OF the
Treasury Department himself. He dare not
give gold for the promises of the Government,
yet he cXacts it for customs. The more he
hoalds. the higher the premium on gold. Sup
pose he should pay out S2O,0OO,OOO IN gold to-
morrow for greenbacks with a promise to con-
tmue to do so indefinitely, and That IN eon:e'
qrtcncc, gold would droG 70 IS. How much has
he U0yeinmegt made, and how much
has it losiG The $2o,OooOOO Of greonbacks
purchased might have been purchased with
gold at i35, for $l5OOOOOo. Here ia an appar-
ent loss OF Sj0O0,0OO. But in exchange for that
all the valves in the country have advanced
really nearly twenty per cent. A hundred
millions of value has been added to Che out
standing promises of the GQyQTnpent A
steady maintenance of this policy would IN a
few days drive the premium on gold down to
par and specie payments would resume them
selves. IL is not specie that people want, but
only to know that they can get it if they do
want It. So long az il Is refused, whether by
Government or individuals, it is wanted and
high premiums are paidi for if. So soon as it
is offered, it is declined, because it is not
wanted.
Some ask why give a gold dollar for prom
Use that can bc bought up for GS centsg We an |
swer, buying the Government promises is con
tracing the currency and tightening the |
money market For while the paper bought |
la
given for it does not pass into circulation so
Lnnr nl n f. ~ a nrnnlinm Rnf fhe plfecf of |