New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-05

inherent defect in its management. and the foregoing
staVeent may III degree 10 show where the
.IOr hes: FIRST, in demand call loans TO brokers and
spectators on collateral security, by which nearly one
half the active resources of the banks used directly
TO foster and promote speculative operations secondly
certified checks or loans Of credit TO the same class OF
men, whereby stocks are inflated and immense operations
are carried daily upon fictitious capital; third the
payment OF interest bank balances, which, being pay
able demand must DO loaned call IN order to avoid
loss.
Mr. Hulburd devotes page and ahaf of his report to
the subject of pancs and prescrbes the remedy as fol
lows: If the Treasury of the United states could hold in
certain amount OF legal tender notes IN excess
Of the amount OF money in regular crcuat0 10 De adj
vanced banking Institutions ut specified rate OF inter
est upon the deposit of United States bonds as collateral
security, source Of relief would be established which
would effectually prevent monetary pressure from
being carried any runOus extent This proposition Is
not anomalous or without precedent In TIME OF severe
pressure the Bank of England has been authorized
by the Chancellor of the Exchequer to issue it's
notes of the Limitations prescribed III ITS charter
This was done ia violation. or without authority OF
law upon the pledge by the Government OF an act OF IN
demnity. In our Government no power 70 make such
pledges exists and therefore any extraordinary proys
ion of the character must De authorized by law
Under the head OF specie payments the Controller says
"The subject OF specie payments naturally comes up
whenever the currency question is discussed. and much
ingenuity has been exercised in deyising plans for
early resumption inc principal obstacle to specie pay
ments may, De foHna IN yhe statement of the pub
tOber, 1865 under the head OF debt bearing no
interest as roll0ws: United States notes, $780,
O2lOI3; fractional currency $50 81 - making
together 3SSg546S II Of Government notes circulating
as money and designed to take tine place Of gold and sill
yer by being made legal tender for ali debts public and
private except duties imports and interest on the
bdn0ed dept AS long as the people prefer an inferior
currency inieTQl because HTe1eepable and nconvert
Die except at heavy discount they will have II to the
entire exclusion OF the precious metals. Whenever the
people conclude that economical to conduct the
business OF the country specie basis they can 0rdan
specie payments by making provision through their kep
resenayes in Congress for the payment withdrawal OF
the present deprecated paper currency issued and Kept
in circulation by the Government; and whenever the
people wish to restore the credit Of the nation tDey can
do II through their representatives. IN Congress by re-
moving the only embarrassment that STANDS III The way
by directing that provision shall be made for the pay
OF floating Indebtedness amounting 10 SJHSOOWV,
so establish the fact that the United States is solvent
debtor able and willing pay every debt as IL becomes
Specie payments and the restoration of public cred
are within the reach and depend upon the will OF tho
people OF the United States.
The report closes with an auSOn to free banking.
which We copy entire: Whenever Congress shall
inaugurate measures looking To the appreciation OF
such measures will probably be TO diminish the volume
Of such notes in circulation To what extent the reduc
ton would have TO be carried in order ~ place them per
manently a specie basis would at present DO mere
matter OF speculation. Doubtless large amount might
carried with profit 10 the Government and with ben
cit 10 the public, soon as the effect Of such measures
becomes apparent by the gradual approach OF legal
tender notes to par with gold. The restrictions i'm
posed upon the issue Of circulating notes by National
Banks may be safely removed, provided the establish
ment Of central rCdccinng agency IN the city OF New
York, at which all National Bank notes rcdecmabo
AZ par shall be required by law Any uCOuy enieAce
sultng from reduction of legal tenders may thus be
only competent Judge Of the necessities Of the case the
business public Of the United States Respectfully sub
United. ii. X. HULWED,
Controller OF the Currency.