New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-11
FINANCIAL QUESTIONS ~ CoNGRESS

o smile. Witness MT. DlOlhNeuS P'"PVo' W
authorize the Secretary of the Treasury to adu
70 the Forced Loan" or legal-tender notes
four millions a month and TO issue them mt
that rate in redeeming the long bonds into
which a considerable portion of the debt Is
now funded Such proposition dehes argi-
menf. That Government can, during peace
levy forced loans and issue irrcdecmablc paper
rs a means Of restoring its credit, Is unacy'
That if should reverse the funding system by
changing its long bonds into notes payable on
demand is insanity. But that it should com
bine the two policies, levy a "lorccd Loan in
order to take up and pay of a voluntary one and
issue dcrreCated, unsecured and iuedeemable
paper rs a means of taking up Its funded IN
debtcdness. is climax of financial demcnhd
which deserves medical treatment. We COM
mend its author to a course OF ipccac, aloes,
Turkish baths, and straight Jacket Mr..
Lunch of Maine proposes to resume specie pay
ments by rcdecming all L. 5. notes in new
lcgal-tcnder notes payable IN one year m com;
by allowing the Secretary, after specie pay
meuts have been resumed, 10 Issue notes pay
able in coin pray, in what but coin viii any
notes be payable after specie payments shall
- -
"to purchase coin to redeem bonds, not ex-
"ceeding $jO,OoOOOO' 90. With what but bonds
ia he 90 purchase the coin and if he purchases
with bonds. coin with which to redeem bonds,
what is lie doing but giving bonds
for bond52 Why need the coin in
te1vene in the transaction2 The first clause
of tie proposition amounts TO promise 10 re-
sumo specie payments one year from date. But
in what way will the Government be in better
position 10 resume in one year than 70 is now
VIII ii have more gold? or fewer demands
upon its gold VIII the premium on gold be
lcss2 and if not, how willEt be easier TO pay
these notes one year FRONT date in gold.
than it now is 20 pay those of which they are
now to take the place. Mr. Lynch has also
proposed new Three Hundred Million loan,
payable, the principal in lawful money and
the interest at five per cent IN com. We have
sixteen different forms of loan already. Why
add q seventeenth, when consolidation and SIM
pliGcation, not scattemton and complication,
are sought after ~ our creditors, aud ore cs-
s,,f,tiaI tho rr,turtt"" Uf Vu rates Oh IA
tere,t2
Mr. hubbard of West Virginia has intro
duccd a resolution, the aim of which is sound
and practical, iustructing the Committee on
Banking and Currency 10 inquire into the cx-
pcdency of amending the National Currency
law. 80 rs 10 restrict the issuing of bank notes
10 two-thirds of the capital of the bank, aud
extend its advantages to al persons who viii
comply with its provisions. With the present
premium on gold this would bc equivalent 30 To-
miring the gold value of the bond, deposited IS
security for the circulation to exceed by ten
per cent the amount OF bonds issued. But
though at present the banks ought to be re-
CURED 90 put up more security in proportion
10 their circulation, probably law requiring
them TO deposit 80 per cent more would be found
excessive after We shall have returned to
specie payments. The immediate effect would
be the same, and the ultimate effect bet
ter, if it were required that the gold rOue
of the bonds deposited by tho banks
should always exceed 10y 10 or 20 per cent
the amount Of their circulation. This would
place the National Banking System on a basis
which would be the equivalent of specie. IL
would thereafter bc their interest TO hold n
considerable reserve IL specie and to further
specie payments. Then if by proper Iegisa-
ton the present gold reserve of $lOO,0O0,0OO
upOn the market, under such regulations
that it would force down the premium on
gold, and would be bought up by
the National Banks, and held instead
Of the lcgal-tcnders as reserve, and as Sc
cuyity for their circulation, the result would
tend greatly to strengthen our entire financial
situation. Our gold, at present, is performing
no function whatever, except that of empty
display and idle threat. Our paper money,
whether greenbacks or National currency, is in
no way strengthened or secured by it. The
nation is losing the interest on its gold, to the
amount Of six millions per year in gold, or ten
millions per year in currency. In the vaults Of
the banks, and rs the natural basis for our
National currency, it would be utilized, and
would serve the business interests of the cOun-
try.
A the discussion of the financial question
develops in Congress, il will appear more and
more plainly that the integrity of the public
debt, which was the price we paid for our
present National Existence, the exemption OF
the debt from that local taxation which if
allowed would drive it out Of the country and
cause it to be held by foreigners, the preserya-
ton of National Banking system and cur
rency founded on that debt rs its basis, and
the early adoption of measures calculated to
place that Banking system on a specie basis,
and restore specie payments are policies in
separately bound up with each other and with
the future ascendancy of the Republican party.
While, on the other hand, the remnants of the
Democratic party, unable longer to prevent the
restoration OF the Union, will seek to swindle
the creditors with whose money the nation was
10y taxing the bonds in the hands of
Americans into the hands of foreigners, sure
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