The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-31

city toward which its notes now for redemption
does not need specie at home. The bank in the CIT,
winch can supply that which will purchase ex
change on London or Paris does not need coin
nor Is coin paid when the bill is presented
from France by Andrew Jackson was all due them
LOT goods purchased there on credit, and much OF
ms gold went back In the original packages TO pay
THESE same debts, involving double transportation,
risk and loss OF interest. Il seems 70 us who look
~ TINS question practically that too much stress Is
laid upon the necessity Tor certain proportion be-
tween the amount Of specie on hand and notes in
circulation, and that we fail to how much OF all
our business IL transacted without reference to gold
except as q standard, having well known and con-
siderapy uniform relation to labor, by which Its own
cost Is determined Let us suppose that my propo-
slton 10 call the legal tenders seveny-1ve cents on
tne dollar In gold Is adopted and all these notes
placed on compound interest, at that price, in
VIII pretend that they are worth more than
That, or that this change would increase or
neres Is e
Obligations OF the government, there private
rency debts TO the extent OF at least 0o0
ana all These would be Increased In amount practl-
cally ut least onethird by any mode OF resumption
other than the one have proposed, ard which the
creditors stlgmatise rs Reputation. understand
by reputation that give creditors less than has
been promised, and this Is what have never pus-
posed to do. objected to the passage of the Legal
Tender act, because i knew II would change the
monetary standard as absolutely as If we shbuld de-
base our coins OF reduce their weight, and thus de-
fraud creditors as we had no right to do. object
now, on the same principle, 10 any change in the
standard without provision for all the 1Dntracis
existing at The time payable In currency or
III the debasel coinage called legal tenders because
Il will deiraud the debtor by compelling him to pay
more than he has agreed. He does not my more
dollars in number but he is called upon paw the
same number worth much higher price. This IS
both unjust and unconstitutional and confess my
surprise that go many Intelligent writer's onths sub
ject have failed TO that it is just much repud
ation for creditor TO exact more than is due him
as y Is FOR the debtor 10 pay less than he owes Let
US ma the true specie value OF all our currency La
bllities and then say that these shall be brought 10
the specie standard and all contracts in future
efly mere and are now abroad, without recurring
any considerable amount or specie In their
payment. this being made by all the various
forms OF currency which represent and act as
titles TO the commodities which we exchange, as
deeds and shares OF stock do for real estate fixed
property. The instant effect OF resumption would
be to reduce the prices OF all property to the gold
standard, and thus diminish the paying power OF all
debtors unless, as have suggested, the prices mot
the value oil their liabilities are simultaneously re-
duced In the same proportion. Make this reduction.
and resumption may be secured at once, safely and
equitaby for all partes fail to do this and esump-
ton Is not possible at present. for the debtors who
owe in currency control too many votes; snd they
VIII never pay In gold. however much the creditors
may desire II. Before leaving this subject wish to
suggest to your readers who are interested in it that
one great necessity OF our country, and in fact OF
the whole world, Is a truly national free banking
system, founded upon the single condition that the
banker who receives notes from the government
for circulation shall give the most ample security
In addition TO and not as part OF his working capt
tai that there shall never be any failure to make the
notes as good as gold at the commercial centre to-
Wdlu WuiCu tnty HutuTuily now, anu bHeTc SHOuiu
also be reasonable annual tax paid into the public
treasury on the circulation, and then the bankers
should be left In entire freedom. Legislation
not determine where banks shall be located nor
how many we shall have, neither can we shy how
much capital, how many notes or how much specie
there Is required by our growing commerce But
we can say that If notes are issued they stall be
good as gold, and that a portion of the profit on
their circulation shall return to us. And tbs we may
safely estimate would soon amount to $40, 900 600
per annum on the notes required for our nse as
after the withdrawal OF legal tenders By funding,
we should want nearly or quite 81, 600 D00, 900, on
which we could collect four per cent
But our first business Is to resume, and that, with
due respect to the views OF Mr. Spinner believe
can DC done safely honestly and at once.
DAVID WILDER.