The New York herald., 1868-02-24
FINANCIAL AND COMMERCIAL.


sUsoAr. Feb. %. 1865
me gold market dull and barely steady during
the early part Of week. but on Friday experienced
sharp advance l4ax under the news OF the removal
OF Stanton from the War Department and the action
the Senate with regard TO this proceeding Saturday
general holiday. but there transactions both
op and down town At prices varying from l42 I4sk.
and at ten O'Clock at night the quotation stood sl llS
1AsK tho advance being Of course due TO lbs reports
from washingIon Of the refusal Of Mr. Stanton TO give
up possssson Of his Office, and the arrest. fol-
lowed BY the subsequent release on bail. OF
the newly appointed Secretary OF War ad interim,
together with The resolution In favor Of impsach-
nsnt recommended by Mr. Stsvsns from the Com
nittss on Reconstruction. There was considersbis sx
stsnsnt amsng the buyers OF god bat II is probable
shat this will quiet down than Is generally ex-
peced neither side appearing disposed 10 resort 70
force and the point being the constitution
atty OF the Tenure Of once law this VIII
soon be decided by the Supreme Court unless u
should decline Jurisdiction the ground that It Is
political and judicial question. which Ia improba-
DIE % personal rights are involved In the case. or
sourse rhaddeus Stevens impeachment scheme is to
bs sgtated or pushed through In Congress the public
excitement viii increase, and gold will continue to re
but following the event. even supposng the worst 10
happen, 1t would, in all Likelihood, decline
rapidly than it rose The range OF the market during
khs week was from lao TO l43x
We referred yesterday 70 Mr. Garhed's bill for the
gradual resumption Of specie payments, and remarked
that Mr. o. D. Ashley, Of this city had recently written
. pamphlet embodyins plan for this purpose almost
sdenucal with that OF MI Garfield Mr. Ashley proposes
chat aud after the lsi OF April next the Secretary
Of the Treasury shall, upon demand, exchange
gold coin for legal tender notes q. the
ratio Of dollar in pod dollar and thirty
ufa tn fhn Oh In Ns,~ V,r
and after the LIST Of July in the year. at the
rate Of dollar gold dollar and thirty
in paper after January 1862 at the rate OF dollar
and twenty eight cents In paper after July 1862 at
she rate OF dollar and twenty-five cents after July
I, 1870 at tho rate OF dollar and twenty
paper; after July 1871, tho OF dollar and
ffeen cents paper after July l. 1872 at the rate OF
dollar and ten cents paper, after July l. 1873
shs rate OF dollar and Ave cents in paper and
and after the lst of January 1874 at par In order TO
accomplish this Il proposed that after the passage OF
ahe act providing for the resumption Of specie paymens
IN this manner all gold CON paid into the Treasury
whether from customs other sources shall be 70
taned by the OF tho treasury for the payment
OF interest the public debt ana tho redemption OF
legal tender notes as provided and all authority
fsrred upon him 70 sell coin 10 to DO withdrawn The
notes thus redeemed 10 DO cancelled but held
IN the Treasury to be paid out whenever
qured as . part Of the ordinary Treasury balance,
snd exchanged for national bank dollar for dollar
Whenever presented by the banks issuing them after
April 1885, TO the Of tho legal tender
she Treasury, the Secretary OF the Treasury retaining
tho bonds deposited Of circulation security
for tho legal tender thus given exchange For
che period Of six months from tho time OF the exchange
the national bank noles are to be retained by the
Treasury and the national banks to have
the option OF redeeming them by giving legal tenders
exchange; but this option ls expiration
Of tho six months when the bank to be can
eeed and the bonds deposited by banks which have
exchanged their note for legal tenders must surren
asrsd BY the banks to tho Treasury the
national bank cancelled; and oil banks which may
avail themselves Of this privilege OF exchange shall
felt the right to issue any national currency by
now pledges OF bonds while, In order carry out the
provisions Of the the Secretary OF the Treasury must
be authorized to legal tender notes to tho
amount of the bonds surrendered the redemption OF
national bank currency.
Mr.. Ashley calls attention tho fact that his plan is
in part based upon S Robert Pecls bill for the gradual
resumption Of specie pay by tho Bank England
but he claims that The resulting from the rigid ap-
pcation OF that act will be avoided by the provision
he makes for the redemption national bank currency
shs being ai TO the carrying Of the nrst part
without widespread commercial disaster. Moreover
specie pay be resumed successfully by
ihe government with respect to legal tenders the
banks also position TO redeem tleir notes
In legal tenders according TO law BY permitting the
exchange or national bank notes for legal tenders there
FORE advance their would be greatly reduced
the banks in the large cities which bank upon their
deposits and depend but little upon their circulation
would be the first renqush their circulation in view
Of the OF embarrassment which its redemption
would pressa TO them Confidence in the national bank
he
BY tho fact Of It's being convertible into legal
tender notes at the Sub Treasury. The disl-
crlty IL the mpracicabIisy of returning specie
payments by the adoption OF which the out
paxayze the business and industrial OF the
country was shown last year when the currency
unduiy contracted BY Mr. McCulloch. The tendency OF
such Is TO produce commercial depression and % dis
1ress the manufacturing and general business community
the effect OF which upon the revenue receipts OF the
government Is OF very damaging The author
this pamphlet not incorrectly contends that ability
Of the government 10 resume in any cent, Is TO be
measured By tho confidence Of the people in the plan
Of resumption, while 70 distress tho business
nifty is 70 alarm and dsIrust, that It becomes
necessary adjust the machinery OF resumption
manner that may harmonze with the business 10.
Of the country by stimulating rather than i'm
pairing the revenues asd dusiug confidence among the
people. This plan, u % claimed. embodies these
qusitss because It contcmplates gradual redemption
oy the natural accumulation Of gold In the Treasury
while guards against any contraction Of tho
ourrsucy because, also provides for the redemption
OF national bank currency and establishes uniformity in
ne prioe OF gold for specified periods, thus enabling
business make their calculations the future
with certainty. 1t suggested 70 the writer in qucs.
ton that . plan 10 consolidate the public debt should
accompany measures intended 10 restore specie pay
snts: bat 20 him this seemed prs smaure as no move
asns sfths kind can Be successful unless II embraces m
inducsnsat 70 exchange outstanding bonds for the
loaa. and k not practicable to odsr such induce
mont until " ore npt upon the specie basis unless by
increased rate Of interest," The main object Of conso-
daou would bs lower rate Of interest and We can
6rss accomplish . return to specie payments may
thsn offer fve four per bonds OF long loan