The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-12-25
suggesfioDs ON ths Resumption Of Specie
Payments.

Payments.
Our correspondent San Old File" whose
suggestions In regard to the banks, call
ed out by an incorrect report of the speech of
b. #. Manson, Ese., at the meeting of the Ma
tional Board Of Trade in Cincinnati, were pub
lished Yesterday, will see by the following full
report of the remarks of Mr.. Manson his OBJ
lections. thereto are without Foundation.
though We have grave doubts if the scheme
advocated by tn, speaker will be found gener-
ally satisfactory.
Previous to the late war the States regulated
the banking system within their borders,
obliging all issuers of bills TO do certain things,
one of whichtwas to hold a reserve of gold, saw
OF about 10 per cent on their circulation.
This reserve was 10 secure the public against
loss on said bills. Bill holders, have generally
If not always, been considered as privileged
creditors and were paid from the first receipts
ofany failed bank.
Soon after the commencement of the RebaIl-
ion, all the banks Excepting think those in
Cahfornla) suspended specie payment. Not
long after this the government; in manner
If not really, legalized the suspension and Gre
ated the National Barking System, At the
time of this Suspension, there.had been no run
on the banks and they had, or ought to have
had their full amount of gold reserve
To whom did this gold belong? not to the
BANKS Tor they held il Only as security for the
redemption eff their bills frst and their other
Indebtedness afterwards. Have they redeemed
those bills? No. Have they kept the reserve
gold on which those bills were issued? No
They have sold this gold at a premium rang.
ing from 100 70 $50 per cent. What have they
done vi, b this supply which belonged to the
pubic? Increased the capital of the banks, de-
CARED ex "a dividends, or held the same as re-
value for these bills? No. In no way. s gnu
IN The suspension of specie pavmenfs the
banks alone were the gamers, ana they profit
cd OF selling for high premium, property held
oy them In trust for the people. / blame them
not and the community most unanimously
sanctioned their action at the time.
Added 10 the above the National Banking
Law Is universally acknowledged to be SO IA
Eoraoie to that interest that there is scarcely
Dank thinks it advisable to declare more than
half OF its profits in dividends. The BANKING
business, under the National Banking Law,
has been the most profitable as we'll as the
safest business done in the country for the
past few years. The foregoing is the pos ton
o. Inc banks to-day, with three hundred mil
lions of currency a1oat in the country.
would make no radical change In this banking
system, and am glad that there is a class in
Just the position the banks are in who can af-
iord' ana whose duty it is, to place the curren-
CIV Of the country on gold basis. | wonld
have the government allow of an increase of
ns'ionai hanks and national bank currency
under some such restrictions as follows:
PARTIES wishing national bank bills shall fur.
nlsh for every $4,000 required 100000 of the
notes they shall receive bonds of the govern
ment hearing interest at Or 5 per cent in
gold, which bonds shall be pledged to the gov
ernment as security for the currency,
Wou'o nave Congress authorize gold bill
instead of a certificate of deposit, inasmuch as
1t would be more convenient for conmerc;al
purposes and be great belp in resumption. as
} shaii endeayor to show hereafter The sale
OF god should be stopped by the Secretary OF
tne treasury, and when there is surplus he
VI w vf 1et,I-, auo s,so a.nuuG nj ~
(the Secretary OF War; shall purchase such
amount Of supplies for tie army on gold ba-
sig. to be maid in gold or in gold bills. 'Cbese
bills would have>the government cash at any
OF the sub treasures or receive for duties on
az ports. would also have the government
pay their gold interest In these bills or gold
c Din, at the holders option
The national banks should be obliged to hold
of these bills or gold on the LIST of July, 1869.
at least per cent of their circuation-on the
following July II per cent-and on the lst of
July, 1871, at least 20 per cent. 1t Is then for
the banks to determine the amount of the cir
cuiation they will have, and the question of
expansion or contraction is entirely taken
from the government With reserve of 20 Der
cent. OF the circulation in gold or its eauiya.
tent, resumption ceases to be question, but
becomes tact, or the ability becomes fact and
- Suo puptioh Wnuid also, under an act OF
Congress to that effect. Under these circIim
stances the government has moth ng, or, if any-
thing, but little. to redeem, and should on the
LIST of July, 1871, receive any bills, original le-
Tal tenders or gold on the same basis. In. is
suins gold bill would have the government
always al keep fully as much gold in the Treasu-
x az there are bills issued By doing this I
Cn ala bills will take the place of gold where
Low clrSulates or is needed, and the gov
,aro,n n. VIII find itself the custodian of
cosg no al inta of coin, which, while il will
honds both at hon., VIII give a character to our
low of the funding of our national ohI;e @t
on very favorable terms ''hsa'ions' |