Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1868-03-18
Specie Payments-How to be Resumed.
On Saturday Mr.. Lynch of Maine made
an able speech in the House Of Representa-
tives on the above subject concluding as fol-

tives on the above subject, concluding as fol-
lows -
A monthly redemption by all the banks in
the country of their circulation which had
found its way into the Treasury of the Unit
ed States. and a gradual appreciation of the
currency in which the redemption is to be
made, until it becomes equal to specie, would
be more impartial and beneficial to the public
than the present system, which compels all
the banks in the country to keep large de-
posits with banks designated at certain points
for the redemption Of notes that are now pre-
sented for redemption The deposits being
loaned 10 swell spoculations in stocks and
merchandise, it may be objected that it would
be inconyenicnt for the government to ox-
change aud impose some hardship upon the
banks 20 compel redemption Of their notes
to the amount Of S9OOO,0OO per month
Grant that it may be So we must expect to
be subject to some Inconvenience in affecting
so great and beneficial % change in our iinan-
cial affairs While do not agree with the
gentleman from Pcuny (Broomall) that
1t is necessary TO paralyze business, check
productive industry, destroy confidence and
pauperizc the labor Of the country, in order
10 reach specie payment, do expect the cf-
fort to cost something That we can resume
specie payments not only without any iinan-
cial revolution, but with healthy revival of
business, ii We viii make an honest effort IN
that direction, / firmly believe. When the
United States notes have all become redccma-
blo ia coin on demand the bank. will be OBJ
litsod ga r.1..t,t tI.f. .;r,,,l,tto, ,.tti ,l.,,
and for that purpose they will require from
one hundred to one hundred and fifty million
dollars. These notes being as good rs specie
to the banks will not be presented at the
Treasury, but will be kept az reserve for
the redemption of their own notes, while the
national bank notes, being legal tender for
most purposes, and convertible into notes re-
deemable in specie, will only be presented for
redemption when specie or its equivalent is
wanted for actual use.
Mr.. Speaker, a resumption of specie pay
ment, cannot be secured by any mere arbitra-
ry enactment that it shall take ace immeli-
ntely or on any specified day in the future /;
not 10y writing at once over the door Of the
Treasury. Specie payments are resumed, A"
nor by giving an order that such inscription
shall be placed there on the lst day Of Jan
1863, nor by attempting the financial impos-
slblity of borrowing IVA hundred and fifty
millions of coin in Europe, whore our bonds
are now selling at about 80 per cent. discount,
and removing il to this country, with the ex-
pcctatlon of retaining it as the permanent ba-
Sd, Of our paper money II we promise to re-
sumo tomorrow, the public know the promise
cannot be kept. The margin Of forty per
cent. existing between gold aud paper cannot
be extnguishcd in day-the chasm between
our paper currency and 90 cannot be capped.
1t must be bridged if we promise to resume a
year hence, with no provision for appreciating
m the meantime our paper toward a par with
gold, and no provision guarding against the
otherwise irresistible effect of a sudden panic
after the resumption has taken place. The
public will not believe that we can perform
our promise and this want of faith insures a
failure; and sir, any failure in an attempt to
return to specie payments would so impair
public confidence as to retard resumption for
years. We must not begin until we can 90
through We should make no attempt that
is not morally certain to succeed five uu.
dertake only what the financial world regard,
as practical to be accomplished, We shall 50
inspire confidence as to insure success. To
inspire confidence, rather than 10 create dis.
trust, should now be the first aim ofour hnan-
Ella policy. Here let me call attention to the
difference between the operation of these meas
urcs which | have proposed and that Of the
contraction policy. That policy produces
stringency of the money market and inspire,
q lt4 hrftt,. ,th l..,,ls ID