The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-29
REsUaPTIos OF SPECIE PAYMENTS.


NJ this subject win be to educate the rising genera
ZION in the important science OF money and the prn
cules OF banking This country has, as vet produced
no great elementary practical writers on pohtica
economy or that branch Of 1t which our present ex
fCencies bring SO prominently forward at this time
The rapid development OF resources, produced by
STEADY and ever increasing indux OF European labor
and capital has enabled us to go on pros
pering In spite OF o pretty generally bad
system OF banking, and In the absence OF
paper currency having o uniform standard OF
value throughout the whole country. Hence
the questions that have called into action the highest
ore. OF intellect in the older communities OF Europe
have been very much neglected here. The necessi-
ties OF a vast civil war havn given US the greatest
boon the country has possessed in the shape OF
paper currency accepted everywhere at the same
standard OF value. 1t seems somewhat singular that
so many people who have never studied even the
most elementary treatise on the sciences OF money
should be so anxious to get rid Of 1t. If those who
by their writings and speeches show their ignorance
OF the subject manifest such anxiety, what can be
said for Others like Secretary OF the Treasury,
who do understand it, urging return to the old sys
TEN, which left more than half the country with q
"wildcatn currency9
Although our "greenback" government paper Is
deprecated in value by reason Of its redundancy
that is there being, with 1t and the national bank
paper together larger amount than is required for
the present legitimate business OF the country- is
nevertheless downright blessing, and ought not to
be le0isated out OF existence without equally In
falble substitute. But can such substitute be
found9 In France and England they have the two
great national banks, whose paper circuates or can
be sold everywhere within the respective coun-
tries and almost all over Europe at par. The next
greatest boon to mankind to . universal language
wonld be that OF universal standard OF currency.
A currency, however, to have such standard,
must be based on gold. Hence 1t Is desirable
that we should devise some safe method OF getting
back to specie basis by easy and gradual pro-
cess. ANY hasty and forced return would produce,
by carrying down with It the values OF all commodi-
ties and the price Of lands rents and labor, very
great national catastrophe. / have in former artl-
ces In the HERALD pointed out these effects; but
there many considerations connected with the
question OF currency that it IL difficult to do justice
to il In the limits usually imposed those who seek
publicity through the crowded columns OF great
leading journal. therefore return to 1t In the hope
OF popularizing certain generally received IL not
fully demonstrated principles and using them to
point the way to a sound system of currency.
What Is now most to be apprehended is the hasty
action or the national legislature. In the first place,
there Is urgent necessity for act to provide for
an early resumption OF specie payments. All the
10 paper currency, and the chief evil Of its at
present too great volume arises from the fluctuations
of gold, as measured by the paper standard, caused
by artificial MEANS such the combinations OF men
controlling large amounts Of capital and availing
themselves OF extensive bank credits given expressly
TO speculate in gold. If Congress could devise some
limit this evil the currency win appreciate
steadily TO gold standard without any serious dis
turbance OF values When gold, as at present is 1ss
in the market paper dollar is worth, by that STAN
dard OF measure, about seventy four cents-or,. in
count or that much deprecated. II by any
process regular and gradual appreciation
Six and half per cent per annun, or q trfe over a
half Of one per cent per monih-the specie point
woud be reached In four years. This, | conceive,
can be done by system / have heretofore sug-
gested-namely, by the secretary or the Treasury
Treasury TO purchase the greenback currency at
prices 10 be determined BY series OF averages, as
the market value declined diminished This
would he just in proportion to the increase In the
demand tor currency produced by the RAPID develop
Inent OF business contend tnat TINS pan would be
gold for tue simple reason that no combination |
could be slEong enough 10 prouuce run on the |
Treasury al such averages and y y not likely that
any other class would call Tor dollar in exchange l
Tor their paper when they saw that the government
both aOle and willing 10 pay at Tie last average.
On the contrary. ,he gold at present boarded by the
pubic would be gradually put on the market and
Tower It's value. la thus way. argued. we should
rlach the specie point by tile regular action OF the
laws Of currency and trade without the contrac-
ton of any part vi tue present volume OF our circu
lauag medium.
hut there are other methods, though In my jucg-
nent more dangerous; ana propose TO examine |
some OF the principles OF currency and 70 state their
bearing on the questions now under consideration in
Congress. The main question to be- solved may here
be stated as I0lows:-iow are we 10 get back TO
specie payments with the east perturbation In the
values OF commodities, land rents and the wages OF |
lah0rf TINS have answered Ia one way, and shall |
consider the plans OF others presently. Meantime 1t
may be Wen 10 lay down some landmarks for the |
guidance OF such as have not gone deep into the sch
ence Ol money and currency
i. ~ money Is meant, scientifically speaking, the |
metallic coinage OF nation. Ihs, prior 10 the
vention Of banking constituted the Only currency of
civilized nations.
:. ~ currency is meant not only the coinage OF |
nation but every description OF observation-disclosures OF |
debt possessing the necessary qualifications OF value
T. enable them 70 circulate from hand " hand or to
SPEAK more correctly 10 cause commodities 20 crcu-
late. tAs broad range covers bank checks bills OF
exchange prOlissOry notes and all the various
trVances Tor eGectng exchanges OF every Kind ex-
wHJe currency constitutes the sum total OF all debts
due g each individual In the community.
In tins enlarged den ton OF currency we get some
faut idea OF us enormous magnitude In great In
dustrial aud commercial country like the United
States. The aggregate in daily use, judging from
Tie operations VI the banks In this city Alone can
not be less than nom ZOO 100000 TO $4,000 ,000
The paper currency OF the government aud national
blnks together, may De assumed 10 be, IN round
numbers, 500 900 100 or say onedfth OF the wnoe
currency o. business. AS this one-hfth. however,
nNes the measure OF values its expansion or con
traction, when q state or suspension OF specie pay
Iu,nls arises always becomes h matter OF public
s1lcuae aud generally the subject OF Legislative In
tcrpention. IL expansion has become OF such mag
nltlGe TO throw gold entirely out OF circulation
that article, whether AZ the shape OF coin or bullion
immediately becomes commodity, and Is bought
sold aud specul0tcl In the same as every other
aracie ~ commerce. II we had no foreign trade
and being gold-pfoducing country, speculation In
gold under such circumstances would be productive
OF less eyli hut the erect Of deprecated paper
or uehased metallic currency, Is always 70 drive
The superior currency out OF circulation; and IN
countries watch do not produce the precious metals
ont 81 the country altogether. But for the law which
requires the payment OF customs duties In gold our
supply Of that metal would have been materially
diminished below the amount estimated 10 be IN The
country.
II Is q question for Congress to consider whether
niter al Il may not be advisable TO repeal this provi
sion ~ tie law, aud instead or compelling merchants
t. buy gold TO pay duties, and by this roundabout
way and the means for paving the gold interest on