The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-26
SPECIE PAYMENTS.

SPECIE PAYMENTS. ll as
Views Of Gcaeral Garfield, Chairman Of che
Banking and Currcncy Conmittee-His Plan
for Resuming Specie Paymenss-A Cabinet
OGicer In Favor OF Legal Tenders-ltaid 20
be Made ON the National Bank Notes. 4
WASHINGTON, Nov. %, 1859.
Just now, when we are within week OF the
meeting Of Congress, and when the public press 10
busly engaged IN discussing the arguments for ana
against the resumption OF specie payment 1t may be
Of some interest TO know the views OF General James
A. Garfield chairman Of the House Committee on
Banking and Currency. Heretofore the Committee
OF Ways and Means has set itself up not only to pro-
vide ways and means for raising revenue, but to
shape the financial policy Of the country 1t II the
intention OF General GARFIELD to make the Committee
on Banking and Currency what he believes 1t was
intended to be-the financial committee OF the
House. General Garfield, though western man,
has never been an advocate OF paper money. much
less has he been 10 favor Of an mitable expansion
OF the volume OF the currency. He u Of those who
believe that the resort TO paper money was war
measure, intended only for time Of war, and to
be abandoned - soon a. the var was over.
Your correspondent found the General In his
committee room ~ the Capitol porting over the bill
prepared BY the Census COMMITTEES which General
Garfield has been acting g chairman-for taking
the next census Garfield Is q courteous. scholarly
gentleman, with tine presence IN unusually large
head, nrmly set on . vigorous. athletic body, with
striking but regular features. Our conversation
was about a. foliows:-
CoRREsPoNDENT-General what are your opinions
on the question Of resuming specie paymentss
General GARFiELD-weli. have not been correctly
reported on that subject l saw q statement the
Asr Lac
date resumption. NOW, that is not true.
CORREsr0NDENT-Tnen you don't believe In Hor-
ace Grceley's theory, that tne way to resume to
resumefn
General GARFIELD-Not exactly; but think we
should set our faces towards resumption. Congress
should take some action that would indicate to the
people that we intend some time to resume. This
would prepare the people for 1t. II would give sta
biiity to trade and restore confidence. There are
those who believe we can resume at once. Chief
Justice Chase has always beileved that we could re-
the close OF the war. He regards the legal tender
act AZ war measure, not intended for time of peace,
and 50 do l. But would not do any thing that
would suddenly unsettie values and create great
financial distress. That ia wnat believe sudden
resumption OF specie payments would do Besides,
when we resume want II to be d0ne In such way
that we shall not be compelled to suspend again.
CoRREsPoNDENT-Do you think that II we should
resume without suficient amount OF coin In the
Treasury 70 pay out dollar for dollar In gold for
greenDacks there would be run upon the Treasury
for goids
should resume with our present volume of currency
and our present reserve OF coin we could rot con-
tlnue TO pay specie; we would be c0mpelledd0 sus.
pend again. The very knowledge OF the fact that
we were trying TO do what everybody knows we
cannot do would create q want OF confidence in the
public mind, aud men would say, "Weil the govern
menr WIN be compelled to suspend again: and now.
while 1t Is paying gold we Will get all we can, and
hold IT," ms would create panic. run on the
md ff tNo ctrvv
OBSERVATION-DISCLOSURES 10 your plan, General, for
resumngi
Gene al GARFIELD-First all think, there should
be contraction OF the currency, not VIOLENT but grad
ua!. You remember That Ia 1866 Congress passed q
resolution endorsing the policy Of Secretary McCul-
loch in favor OF contraction. McCulloch, however
was 80 spasmOdic in MS efforts that after q snort
time Congress passed another resolution ordering
that there should be no further contraction Of the
currency. Contraction, to be beneficial should DO
gradual and regular. The business community
should know just how much the currency is to be
contraction, however. Is one which requires to be
carefully handled. Ny plan for restoring the STAN
Sara q va t ao& specie con-
Be by the Senate House Of Representatives
Of the United States Of America in Congress assembled
Tn e ana Sy and Greeted ens
gold soa e hs uutsS s.es for any legal notes
ne 0 az " "a
month legal tender required exchange
dosr gold FOR dollar legal tender notes;
dollar
General GARFIELp-Of course with this and as q
prerequisite there would have to be some provision
made for contraction OF the currency
CoRREsroNDENT.Do you intend to introduce this
General GARFIELD-Yes, shall probably introduce
that or something very IKE it. DO not claim origi-
troduced In the British Parliament in 1919 by
Robert Peel, which subsequently became law, and
under which England resumed specie payments
after suspension OF nearly quarter Of O century.
every person TO square his business and prepare
one similar TO it. England resumed two years before
the time fixed by the law. AS soon as we resumed
would 20 10 favor o. , nee banking ACT SO that
ing business, under proper restrictions, OF course
as to their reserves ana Liabilities.
OBSERVATION-DISCLOSURES, would you be in favor
OF retiring the legal leaders or the national bank
notes should policy OF contraction be adoptedY
General GARFiELD-On that point my mind is not
suilc made up. Formerly was In favor Of retiring
the legal tenders and increasing the national bank
notes. Lately, however, confess that my mind is
inclined the other way. l have had numerous con-
SITUATIONS recently with member Of the Cabinet,
whose name am not at liberty to mention, and
ind that he s strongly in favor Of retiring the ma
tOnal bank circulation and substituting In It's place
legal tenders or United States notes. This policy
has its disadvantages as well as Its advantages 1t
NOuu put Hfcdt power III thc HANGS Vi Congress ana
be the means OF great temptation to them. For IN
stance, suppose tnat on the eve OF an election, 1t
should be found that there was deficit In the
amount OF revenue The question would be how
That deficit should be met. You know there are but
Two ways OF meeting 1t. One is by taxation and
the other by issuing an additional supply OF
Immediately, while the last would only be felt after
q time in tile depreciation OF the currency. Now,
suppose 1t should be time when the elections were
likely to be close. The party In power would say,
"Don't let MS ask the people for any more taxes why
can't We az well turn out the amount in green
De done to the people.
CoRREsPoNDEsr-Don'ty you think, General that
the national banks would oppose the retirement OF
cIrO