The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1867-02-26

TUESDAY MORNING. FEB. o..
now TO RE6uME sPncfR PAY,
MENTB.

HOW TO N80UXE 0PNCIA PAY.
A financial writer Of reputation suggests .
novel idea, but possibiya practical one, in
reference to the much vexed question of re-
sumption Of specie paymants..
Atu reviewing the situasicn, and showing
that our general circulation is in no sense
based npon specie, and has really no other
practical basis but legal tenders, he pro.
ceeds:
"Rapid ontrscticn, as remedy, would Be- vast
ly wor than the disease. And yet the remedy
now needed should be active and immediate in it,
effects, ALI the business, all the prices, all the
debts Of the present day have grown out OF SAD
are adjnsted TO the present state Of thing. Ten
fhousand millions OF dollars 1t least Of dsbts aSs
now runnin 30 maturity founded on prices of the
present time The debtors Of this vast sum, moro
than three times the amount Of our national debt,
relying present prices 10 enable them 10 pay
their heavy taxes and their portion Of this great
commercial debt.
1.-THE debt thus TO be paid 10 also chain Of
credits 70 Be received. II that chain il broken.
by the operation of an undue contraction and con-
sequent fan Of prices, hosts of business men viii
be pulled down, and suspension or failure will
reign throughout the country. A fall in prices Of
80
coustry-A loss Of Thousands of millions, besides
crippling trade and industry, and seriously lesssn
ing the nation al revenue for many years.
The demand of the Government for gold,
which long since ceased to form even the
basis of circulation, this writer holds, 10 be
the greatest impediment 70 contraction, ~
we'll as to stability, as it tends to keep up .
constant effort at speculation, and causes
continual fuctuation. Panic and depression
succeed every fuctuation, whether one way
or the other, and uncertainty and disturbance
as to prices and prospects, have become
chronic in all departments Of business.
The banks cant stand this constant deple
ton Of gold for the use of the Treasury OF
the United States, he asserts, and insists that
even the Bank OF England would have to sue
cuma, and it would not only spdanger that
Bank in brief period, but would in
yolse the business of the country in
ruin, il the experiment we're tried
there. He therefore insists that the remedy,
and the only remedy now open 10 the coun-
try, is, for the Government to cease to de-
msnd the payment of import duties in gold,
and make them payable in legal tender notes:
at would only be necessary to accompany this
repeal with provision that the existing tariff OF
duties, whatever it might be, should for one year
be increased thirty -hvc per cent, and that tls
Secretary Of the Treasury have power to reduce
the rates from month to month, according to the
average price Of gold for the preceding month
The speculation in gold. thus losing its founda
ton in the present financial system of the Govern
ment, would not only wholly come to An end, but
gold would find, in lass than thirty days, ts true
commercial price in our paper currency. In other
words, the price Of gold would, in . short time
reveal the real depreciation OF our paper.
Happily, the greatest objection to this meas
ure is met by the fact that the Treasury nov
holds gold enough to pay the gold interest for two
years. This gold should be scrupulously retained
for that purpose within the time for which the
gold interest Is thus provided; the further meas.
urss to be adopted toward specie payment would
be so fully indicated by the progress Of event,
that the Secretary Of the Treasury could poin,
them out for the action Of Congress.
ain the meantime the rate of contraction which
may DO safe would be readily accomplished. Tn,
duties, being payable in Treasury notes. would b,
weekly reduction of from three to four mill
ions The permanent reduction could be regula
ted by the rate of reissue.
This measure, which for the time beins
brings the Government to practical recog
milton Of the actual basis OF our present cir
culation of legal tender notes, seems pl.usi
bic, and furnishes, so far as we are able I,
judge, the only ground upon which the AID
ministrahon can safely place its foot, in tax
ing the FIRST step towards a resumption O
specie payments.