The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-07-16
Resumption of Specie Payments.

Lynch, from the Committee on Banking and
Currency, and the amendment offered on the
4th of June by Mr.. Sherman to the bill re-
ported on the 10th of January in the Senate
relating to United States notes, deserve care
full attention. The former provides that on
and after May l, 1869, the United States notes
now outstanding, popularly known as green
backs, shall when received into the Treasury
be destroyed; that notes OF the same denomi-
nation be issued, payable in coin on demand
at and after one year from date that all
national bank notes so received at the
Treasury shall, according to such regulations
as the Secretary of the Treasury may pre-
scribe be redeemed by the banks issuing them
in legal-tepder notes, which last when re-
ceived into the Treasury shall be destroyed,
and in lieu thereof the new notes above pro-
vided TOR shall be issued. The whole amount
of the new notes not to exceed the amount of
greenbacks now outstanding, aud to be deemed
legal tenders as now provided, and after ma
turity to be receivable for duties on imports.
After the payment OF specie shall have COM
menced under the act the Treasury is author
lied to reduce the time for the running of
such notes to not less than three months, and
in order to provide the requisite coin to issue
at not less than par $50 900, 900 of bonds, at
not exceeding six per cent. interest if payable
in coin, and seven three-tenths interest if pay
able in other lawful money, of denominations
not less than $50, PAYABLE not more than forty
and not less than five years from date. No
gold or silver is to be paid out after the act
takes effect except tor such purposes or for
interest or other lawful purposes but it may
be exchanged for bullion as now authorized at
the mints.
Mr. Sherman's amendment provides that any
contract hereafter made specifically payable in
coin shall be legal and valid, and may be en-
forced according to its terms, anything in the
several acts relating to United States notes to
the contrary Notwithstanding.
These measures are not necessarily antago-
nistic or subsidiary to each other, but each
presents the question, What means shall be
adopted to secure the most safe and sure
turn to specie payments Mr.. Lynch's bill
fixes on a specified day for this purpose, the
1st of May, 1869, while the amendment of Mr.
Sherman is intended to prepare the country
for this duty by degrees. The former is to
take effect whatever may be our financial stu
ation-whether the crop of 1868 fulflls its
present promise or shall be lessened below the
general expectation and the general want. The
latter seems designed to adapt itself to the
financial situation, whatever it may be, and to
leave the number and extent of contracts to
pay in gold to depend on the course of trade
and on financial sagacity and skill.
1t appears to us that Mr.. Lynch's bill had
better be preceded by the measure of Mr..
Sherman legalizing gold contracts, so that
with practicable measure on foot looking to
the same result, the country may wait for
events instead of being confronted suddenly
with peremptory, and what may be deemed
a hasty measure, fixing positive day for such
return. This is the lesson taught by the rest
lessness terminating in repeal, which attended
Mr.. McCulloch's policy OF contraction. The
business and speculation of the country were
unwilling to stand its severity.
1t ought not to be forgotten that the coun-
try, from the necessities of the war, has been
thoroughly debauched with paper money; that
we have been unable thus far to extricate it
from the disgrace of the fractional currency;
that prices have been adj usted on the basis of
these issues in all parts of the Union except
ing California; that the debtor interest is
always the most numerous; and that the
policy of too sudden return to specie pay
ments would arouse the debtor interest into
such powerful opposition as to invite measures
in the opposite direction, and in favor of ex-
| pansion.
At present, all considerable merchants are
| obliged to keep two accounts-a currency and
| a gold account-on their books and with the
| banks, and extensive transactions in imported
goods already take place on the basis of gold.
! These transactions depend for their validity
on the honor of the parties, and, although
according to the rulings of the Courts, they
have thus far not been maintained by the
Judiciary, it must soon happen that the COM
mon law will adjust itself to the custom OF
trade, and in the course of time legalize these
contracts. But few as are the violations OF
mercantile credit, it will be desirable to pass
Mr.. Sherman's amendment, leaving parties TO
the protection of the Courts, if the measure
shall be used, as it possibly may be, as a
cover to usury by making the interest or prin.
cipal of loan in currency payable in gold
! If this point shall be sufficiently guarded,
the passage of the bill will be greatly ap-
proved by the mercantile community, and
by degrees by the whole people.
The most important efforts of the bill will
be collateral. 1t will produce demand fol
specie to be collected and held in all business
localities, as the habit of making contracts in
the money Of the world shall increase in mum
Der and extent, SO that basis may in time
be created for the measure reported from the
Committee of the House on Banking anC
Currency. At present the amount of speci,
held in the United States is too small to Justify
the fixing of so early a day as the lst OF May,
1862 for requiring of debtors payment il
| gold or silver. Before the war the amount o
the latter held by individuals was larger thar
was the amount held by banks, which amounts
taken together constituted the real basis OF
security to the paper currency then in exist
ence, but both the gold and silver held by
the banks and by individuals have been ex
PEELED under the system by which they wer'
in effect demonetized. A policy by which
the precious metals shall be accumulated anC
held in the United States as preliminary Il
the return OF specie payments, is now re
quired, and we regard Mr.. Sherman's bill al
calculated to have this effect, while at thu
same time those who have made their con
tracts in the paper currency will not be SUD