Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1868-12-24
Specie Payments.

Y
ments, have been introduced into Con-
gress, but the one which seems to meet
with most favor is that of Senator Nor
TON, of Indiana, presented to the Sen
ate last week He supported in a
long and very able speech--one that
was more attentively listened to than
any speech made in Congress for some
years.
Senator MoRToN proposes to resume
specie payments July 1, 1871, on the
part of the government, and six months
later banks are to pay specie. After
the lst day of January. 1879, United
States notes shall cease to be a legal
tender in payment of debts, but shall be
receivable in payment of government
dues. The Senator proposes to accom-
plish this without any previous meas
nre to reduce the currency. We copy
his argument upon this point.
Itiis said by many that the currency
is redundant, and that we cannot re-
turn to specie payments until contrac-
ton has taken place. We are referred
to the fact that before the war, in 1860,
the entire bank circulation was but
S202, 100000, and the specie in the
vaults of the banks S88, ,OO0, 900, max
ing less than S3Oo,OOO,oOo, but at that
time gold and silver were in circulation
as part of the currency, and it is
probable that there was more than
S15 100000 in the country besides
that which was held in the banks
This would bring,up the mixed curren-
cy to nearly $3.50, 1000, 900. The Di-
rector of the Mint in Philadelphia, in
1861, estimated the amount of gold and
silver in the country at S275, 0OO, 600.
which is nearly S5O,O0O, 900 beyond
my estimate; but there was another
form of currency then much more in
use than now, which must not be over
looked in considering the aggregate
currency of the country. The paper
money consisted of the issues of local
banks, and was not current except in
the locality of the banks by which it
was issued. Then the paper money of
the Northwestern. Southern and South
western States was not current in New
York, and was not received there in
payment of debts. The bank notes of
the Northern States were not current in
the Southern States, and vice versa -
Hence, the payment of debts and com
merclal transactions between different
parts of the country were conducted
by bills of exchange and promissory
notes, which amounted to MANY hun
dred millions of dollars during the year.
This form Of currency is still used, but
not nearly to the same extent as before
the war. Now, the greenbacks and
National Bank notes are Of equal val
lie in every part of the United States,
and are transmitted in payment of debts
and transaction of business from one
part of the country to another, by
means of express com panies and other
wise, to the amount Of many hundred
millions every year. The books of the
express companies show an immense
transportation of paper money, the
amount of which cannot be accurately
ascertained, but it would be a moderate
computation to say that 100000, ,OOO
OF our currency are now used in that
way, which was before the war sup
piled by bills of exchange and promis-
sorry notes; and when we consider the
progress of the country since 1860, the
rapid development and opening up of
the Western States and Territories, the
vast extension of business, the magni-
tude of the national debt, the necessary
collections of large revenues and the
greatly increased expense of the Gov
ernment in its general administration,
we may reasonably conclude that there
is an actual demand for an increase of
the currency over the wants of 1860 to
the amount of at least S15O,OO0, ,OOO.-
Therefore, when you add to the actual
currency of 1860, about $3.50, 100000
the amount of the currency now used
in the place offormer bills of exchange
and promissory notes, and the increas-
ed demand for currency otherwise
growing out of the causes referred to,
it is doubtful whether the currency is
more redundant now than it was in
1860, when the banks were paying spe-
Gle; and if not redundant, then contrac-
ton is not necessary preliminary
measure to return ofspecie payments.
There are those, able fnanciers too,
who doubt the practicability of any
scheme that does not, as a preliminary,
reduce the volume of currency to fig
ures near that OF the amount of gold in
the country. These theorists believ
that any other plan would bring disas-
ter and ruin upon the country, and
hence oppose that of Gov. Norton
Where the true and safe road lies it
seems to be dlftcult to find. Opinions
are almost as varied as the minds
which form them.
But, whatever may be the result of
the bill, Gov. Morton's standing, and
his zealin this important cause, will Sc
cure for his plan the careful considera-
ton of the country. 1t will produce
discussion, and that, honestly perform
ed, will bring good results.
@ HORACE GREELEY, in the
Tribune of Monday, opposes Senator
MoRToNs scheme for the resumption
of specie payments. GREELEY IA
vors immediate resumption, and
believes that there will be no run on
the Treasury if specie payments
were began tomorrow. He says
tba one thing needful for sumntion |