The national Republican. [volume] (Washington City [D.C.]) 1866-1870, 1869-09-03

cgal-tend erSt Capital cannot be aggregated
n communlklcs where Il is needed In any
,ther way % veil as by the establishment Of
banks. A hhuk consolidates and makes
available fot general business purposes not
only thc capltal Of bank corporators, but also
The surplus capital OF individuals In the
vicinity " no deposit their balances, large and
small, with the nearest banking Institution.
But, even were there TO be none Of these
special compensations, yet the general and
permanent benefits Of resumption would
greatly overbalance the incidental cost.
ShrIlkdgs Of Hdlsss.-It ID . hurtful fall
lacy TO suppose that resumption will be fol-
lowed by an inevitable and uniform decrease
In the nominal value and market price Of all
property Just proportioped 10 the present
difference between gold and greenbacks, and
the prevalent fears Of "the debtor class"
that their assets win suddenly shrink one
third or one fourth In value as compared
with their liabilities, arc, 10 q great extent,
without foundation. Some shrinkage Of
prices there would DO. butehe extent Of that
shrinkage would not compare at all with
the popular apprehension on this subject.
Experience has shown that during suspcn-
do not, and will not, follow rigidly the huc-
tuations Of gold. For example, at one time
during the war oats were drug at 40 cents
in New York, while gold was 900; now oats
sell at 30 cents, with gold at 1856. This Is
only one Of many similar Instances that
might be named. In all matters In which |
European prices have little influence, as In
real estate and salaries for example, SO many |
other elements enter into the establishment |
Of prices that the effect Of . iiuctuatlng gold |
market Is greatly modified and limited. Be-
sides, as already suggested, the proposed
two years Of preparation would give 'the
debtor class" an opportunity 10 adjust them
selves TO the approaching change and pay
OF the bulk Of their Indebtedness In the same
currency under which II was incurred.
But wherever American prices are gov
the casein many branches Of production and
manufacture, the shrinkage OF prices caused
by an unguarded resumption would be
measured very nearly, for the present, BY
the difference between gold and greenbacks.
The selling price OF American commodities
which compete with Europcan-would de-
crease promptly upon the resumption Of
specie payments, bui he coat Of producing NJ
dn,srican article rouid moi BE- materially re-
sened for soms time. Wages, under the ope.
ration Of trades unions and other influence,
would be very slow to decline, even though
the cost Of living should be reduced, and In
| the meantime tho manufacturer and pro-
Queer Of the above-named class of commodl-
ties must either do business at loss, suspend
operations at . greater loss, or be saved
from loss by legislation. Undoubtedly much
could DO done In two years, BY the class Of
producers and manufacturers referred to, to
prepare for the coming change of prices;
they could reduce their stock on hand,
cheaper wages wherever II could be done,
and cut down expenditures in every possible
way short OF actual suspension. But, In
case all that could thus be done should
prove inadequate to protect from disaster
some Of the leading Industrial interests of
the country, upon whose continued solvency
and prosperity so largely depends the pros
perlty Of all our people, aud Congress should
wish to devise some means OF supplement
ing private forethought, and euultably dis
tributing the necessary cost Of resumption
among all classes, how could this be accom-.
plished more easily and more Justly than as
folows,
A Sliding Seds Tdrif.-As the present
premium on gold serves In certain sense as
an additional tariff on foteIgu importations,
the American producer and manufacturer,
let Congress. enact that from the time OF
adopting . msa sure for resumption, as often
a. the premium on gold declines three Der
cent. the present statutory tariff on these
certain classes Of foreign goods shall be Id.
creased at a corresponding ratio, 60 tina,
| when gold and currency reached an equality
!, on The day Of resumption our producers and
, manufacturer should have the same pro
lection BY law az they now have through the
action OF the tariff law and the eold prc
, MUM combined,
This plan, of a aiding scale tariff, doe,
not inynlve a dlscpssion N The rigbt an
, Hrong of nrotection And free trade. II i,
mentioned merely al feasible and e1uita
bic mode Of extrfcatInp ourseiyea from ~,
a sloupb of suspepsIop. without PRODUCING
a fnancial reyulslon or bringing Calamity I,
A any Important interest, 30 soon as tn,
prices Of labor. supplies. etc. become read
!, Temporary additional tariff could be eradu
q ally and safely removed. II Il be aid Ina
: this proposition would Temporarily enbanc
/. the price of certain American products. AM
|. thus force one class of the people 10 protec
!, another class from harm, Ii should be 70
q piled that whatever will save from prostra
n ton a fourth part Of the business of In
o country, without materially Iniuring an,
4 one, Ia on the whole A good To the genera
= public. Resumption Will cost somebod
N something, and Ii the Inevitable cost of ne
n Stunning can be fairly shared among Ali classe
d II should be a cause OF congratulation
h Farmers, who depend upon Ar America,
r market for dlsposing OF nipett Ave Der cent
\ of their products, will be the iast 10 com
Q plain Of any lust measure having for its oh
: ject the avoidance of a reyuIsion In trsd
| WHOSE Ill tutCth tnty MOulQ Do among lhl
first to feel. This Modification of Ina Raj
p. Is not an essential portion Of the genera
8 plan Of resumption here sketched. and n An,
other mode of accomplishing Inc anne resni
n can be suggested Ii ought certainly 10 h
a adopted.
d Funding TIE debt at Lo,c,r Iu,ersu.-I
: connection with the measured for resumn
+. ton, Government should make provision "a
o funding the public debt In new loan a
l. lower interest. At the proper time. shorti,
/ after resumption, notice should be giyen 4
r the holders OF the frst series (slOO. 0O0. 600
;. Of $50 bonds that this part of the pnbli
}. debt would be paid of on demand In coin. an
n that interest thereon would cease on A Ger
}, tain day. At the same time let a new loa,
d be offered, placing the interest on the Ar,
/. SlOO, OOO, 900, or more, At 8 per cent. viii
: might bear but AZ or 4 per cent. Holder
6 OF the present nve.twentles should OF cours
;, be given their choice whether to accept pay
a ment In coin or receive bonds of the ne,
!, Issue In exchange-unless other partie
Q should absorb the bonds as offered, the pri,
' ilege of subscribing being a public one. Tn