The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1867-11-05
A Scheme for specie Resumption.
From the Chicago TTibune.l

We have shown in previous articles
that specie resumption, by means of
forced contraction and burning up
greenbacks, must bring upon the
& country great financial distress, and
perhaps, disaster. And yet, sooner or
later, we must get back to specie lay
meDts. A deprecated cur ancy can
not always be endured. Many plans
for spanning the chasm have been
proposed, but the only one yet tried
is that known as McCulloch's con
traction policy" 1t consists In re-
firing all the greenbaeks from circu-
lation, and burning them; and when
they are all destroyed the public will
have no currency left but the notes
of national banks, which must
be redeemed in gold or the
banks will pass into the hands
of receivers. This may be
with the difficulty. AS the bonds put
in pledge by the banks as security Tor
their notes would not begin to sell for
enough gold to redeem them, it is
quite certain that hundreds of the
weaker banks would break, and, their
notes becoming wild cat, would oc-
casion a general want OF confidence
ia all the other national banks, and
simultaneous demand for coin for
their notes. which would necessarily
be followed by general suspension
of specie payments, and probably by
a termination of the system. 1t is
pretty certain that the banks win not
pay leo cents in gold to the note
holders for 65 or 20 cents of conSid-
Grafton received by them when they
issued their notes. Mr.. McCullocn
would seem to have entirely overlook
ed the view of the financial situation
Now in view of all the difficulties
which beset any scheme Of forced
resumption that has yet been pre-
sented, we propose the following plan
of getting back to specie payments
without convulsive or compulsory
contraction. --E
FErst-Let Congress repeal the act
allowing the Secretary Of the Trea-
sury to retire and destroy four mil
lions a month Of legal-tender notes.
Second = Let Congress enact that
greenbacks shall be convertible into
ten-forty bonds at the pleasure of the
holder.
Third Let Congress enact that
any class of bonds may be converted
into greenbacks, dollar for dollar, at
the pleasure Of the holder.
EJUrM-Let the Secretary of the
Treasury be authorized to purchase
fve-twenties at their market price,
and issue ten-forties in equal amount
to those who demand bonds for
greenbacks, and also to give ten
forties in exchange for ve-twenties
on demand of the holder.
FTfh-Let Congress enact that the
surplus revenue in the Treasury shall,
each month, be applied in the pur-
chase OF ten-forty bonds at their
market price.
Sirth-Let Congress charge the
banks for the privilege of their circu-
lation two and a halt per cent. per
annum in gold, to be deducted from
the interest on the bonds deposited
with the Bank Comptroller for the
redemption of their notes. Let those
banks which refuse to pay this tax
surrender their circulation to the
government; the same to be given to-
new banks in the South and West in
those States which are short of their
pro rata proportion of banking CAPT
tai; and If there be no applicants o.
those terms, let the government tiii
the vacuum with greenbacks We
propose this compromise of the bari
note question as being equally iai'
both to the banks aud the govern =
ment Let each party have an equal
benefit. 1t will be great injury to
the country to lose the present ad-
mirable system of national banks, and
1T tie same time the people seem de