The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-02-14
MIR. Garneld's Bill Providing for Gradun
Return 60 Specie Payments.

MIR. Garneld's Bill Providing for Gradual
Return 20 Specie Payments.
The bill which Mr.. Garfield, OF Ohio, intro
duced in the House Of Representatives, and
which was referred to the Committee of Ways
and Means, to provide for gradual return to
specie payments, is an Improvement upon
many Of the visionary schemes put forth for
jumping all at once to o specie standard We
speak only from the brief synopsis Of the bill
as reported in the press despatch Of Congress
sional proceedings; but from this we learn
that it is proposed that on and after the lst Of
December, 1868, the Secretary Of the Treasury
shall exchange gold for legal tender notes at
the rate Of one gold dollar for one dollar and
thirty cents in currency on the LIST ofJanuary,
1869, at one dollar and twenty-nine cents. and
on the 6rst Of. each succeeding month for one
cent less. until the exchange shall be dollar for
dollar; and that after juno, 1871, the United
States shall pay gold for oil its legal tender
notes, dollar for dollar The principle recog-
nized Of gradual approach to specie pay
ments Is the true one, for by that process only
can values, trade and monetary obligations
and operations become adjusted without re-
vulsion and universal bankruptcy.
But after laying down this principle several
questions arise with regard to the length of time
it may take to safely reach specie payments,
and as to whether the government should un-
dertake to bring this about by forcing pro-
cess, or if 1t should be left entirely to the
operation of the laws of trade and nature.
Mr.. Garfeld's plan is something like that
of Sir Robert Peel to bring about specie
payments in England after the long
and exhausting wars with Napoleon which
ended in 1915. The bill to restore specie
payments, known in history as Peels bill,
was passed in 1919, and was intended to
accomplish that object gradually, but within
q short time. 1t was believed specie pay
ments could be reached the following year
but though the premium on gold was not over
a sixth OF what it Is with US now 1t was found
impossible to reach the object within the time.
The consequence was that the government was
compelled, to put off the period for specie pay
ments from time to time, and 1t was not until
1924 that resumption fully took place-that u.s.
five years after Peel's dill passed and more
than eight years after the war closed. Peel
and the British government found that theory
and practice were very different things. They
had to give up their theory under the pressure
Of memorable necessity. Even when they did
reach specie payments by slower forcing
process than at first proposed they found that
they had involved the country in the most
alarming difficulties. General bankruptcy and
universal suffering followed. Indeed, the his
tory of that period in Europe shortly after
resumption is appalling.
The question for US to consider, then, IL we
are to be guided at all by the history of other
nations, is whether we can safely force specie
payments in the way and time proposed Can
we, with gold at premium FIVE or six times
higher than 1t was in England when Peel's bill
passed, resume within a shorter time than the
British did? If they suffered so much from
forced resumption, even after they were Eve
years in reaching IL and more than eight years
after the war closed, can we expect to escape
when attempting shorter process and with
gold at premium so much higher! These
are the questions for Mr.. Garfield and Congress
to consider. Undoubtedly we have more
natural resources and far more rapid devel-
opment than Great Britain had, though not ~
much realized capital or wealth but the
country cannot stand forced change in its
values to the extent and within the time pro-
posed by Mr.. Gar6eld's bill. There 10 no ne
cessity for going to England or any other
nation for examples to guide us. Our situation,
resources and means are different in many
respects TO those OF other countries. Let us
have a financial system OF our own. adapted to
our normal condition. Rather than interfere
with the currency by legislation let US first
adjust our political difficulties, and then leave
the return to specie payments to the rapid
growth Of the country and to the laws Of trade
and nature. But II we will go to England for
examples let IL be to avoid the errors Of her
government and the misery brought upon her
people through visionary and impracticable
financial theories.
INFLUENCES OF THE UNITED STATES IN EASTERN