The New York herald., 1867-02-11
FINANCIAL THEORIES.
Obstacles In the Way OF Resuming specie
Payments.

Obstncles In the Way OF ResumiuG Specie
Payments.
TO THE EDITOR OF THE HERALD.
There are siupendous obstacles the way Of resumng
specie payments and maintaining them They not only
exist but daily becoming more formdabe and they
will continue to increase with their aggravatons SO long
as the present theory and policy adhered But
resumption being held to be the chief thing to be
desired-the only enectual remedy, necessy-it
be sought and aimed at whatever difficulties may in
the way They In some measure foreseen and must
be submitted to-
We have now q safe and uniform currency II Is
denounced by some inflated and redundant in quan.
tty. simply because they imagine 1t to be deprecated
If 1t adequate to the enlarged business OF the country
and the of the taxes 1t ia because It's safety
and uniformity make 1t everywhere current, so
that given amount will accomplish q far
greater amount OF exchanges and payments than
under the former system. or national bank and Trea
su notes exclusive of compound interest notes. which,
like bonds do not circulate as currency have about
seven hundred millions OF paper in use The amount OF
exchanges and payments effected probably twice as
much per year as at any period before the war;
That there too much is Indicated only by its
being all employed in discounts but by large part OF
1t being issued again and again by dscounting on de-
posits and by temporary loans CALL and also by the
prevailing rates of interest of DOORS which range
from four to twenty per cent.
The chief obstacle to resumption is the wan, OF coin
wherewith 70 resume. The coin which for years has
constantly flowed out OF the country In payment OF
reign debts, and for which outflow the reason is now
asoten as ever and likely to continue SO I'M the for
nm, eb Is cancelled, must be rcganed and forced
mar and into the country Il must be forced hack at
P such quantities that 1t will freely circulate
mands - roMr Mr and meet and sarmount all accruing de-
Ill, ms oos'a"e is apparently magnAcd by the present
n pa.se ~ sad here q commodity for export But
hu ,h .ne lrevailng theory this signifies nothing
national currency Of rape. According to the ;hcorr
LOU YOU restore tho lost vaee OF the paper that viii
and equal value money Then Won car restore sr
pay PIX mcns the paper however much deprecated before
s,a % men 6e worth as much gold and they viii crcu
tia. painful and costly result For being assumed
fated"e paper, by being too abundant excessive in
Induced pfenYe coin out OF the country and
export; ana the re., on gold as commodity OF
political Se Sn in the name Of
scarce or more scarce, than goi have o ~. no - - anu
scess;tv flow back 6ll the channels tso IL ~ s ~ ~
imFar "a wa. paper remains the value " sna 2,
This process wi Of course and is expected to cads
spcad Intense the longer the operation akea We
have tried this mode Of remedy ON small scale repeat
edy for two or three TO nve six years, when
foreign debt comparatively insignificant We
now try II with foreign debt reckoned by hundreds
millions and debts at home reckoned by thousands Of
millions
Bat we need not enlarge The public mind Is already
in state to be excited and alarmed by tail Of one or
two per cent in the price or national bonds in foreign
markets. and by and visions OF what may pos
s,bly happen We cannot stand reduction OF the
rency. II we 60 on a. We are living and floating upon
credit our debt will ard ability to will
diminish IT, with nearly Ave hundred millions OF in
erna taxes and last year. we raid besdes one
hundred and forty millions OF interes two hundred
millions OF pubic deb, increased debt to for
eigGers probably two hundred millions
But there Is shorter practicable and more harm
less way OF alcyiation. We want coin,
tona coin. Why do not stop the export of II. and
set the mnts coming nores Why do We not forbid
the sale or passing OF II premium Its legal rate
Why do repeal the frutless and absurd condition
requiring national currency Of paper 10 be redeemed
with coin
These measures would instantly and essentially
leve US. Tho risk and danger Of excessive imports
would fall on the individual importers, which would
| check them NICHOLAS KNICKERB0CKER
Stock Exchange Building