The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1869-01-28
Resumption OF Specie Payments.

|
danger that Government would not be able
to maintain it with the amount of gold it
now has, against the present volume of
| paper currency, inasmuch as the banks,
which control nine-tcnths of the circulation
of the country, would be likely to distrust
the ability of the Government to continue
its payment of coin, and in anticipation of
another suspension, obeying the instinct of
representation, would draw from the
Treasury all the specie they could, for the
purpose OF substituting it for their legal
tender and deposit reserve, amounting to
nearly $500 OOU, 600, and thus swamping the
Treasury In the very inception of the pur-
pose. Another difficulty, so serious as to
create great apprehension, is, if the banks
were compelled by law to resume specie
payment at fixed date in future, say by
the 1st of January, 1871, as Mr.. Morril's
bill proposes, without being furnished with
the necessary amount Of coin, they would
have so little confidence in their own ability
to meet the requirements of the law. that
they would az once commence to withdraw
their circulation III anticipation Of the
dreaded day, thus causing grent scarcity
OF currency and widespread embarrassment
and disaster Ill commercial circles. Another
objection urged against IL rctnrn to specie
payment Is, that the goods in the ware
houses of the importer and johb.r, and on
to gold values, subjecting them to cores.
ponding loss. Another that when II iinan-
clal revuision shOuld occur III EurODc we
are liable to have our bonds now held abroad
returned to us by the tens of millions for
gold. so much 81 as to endangcr our ability
to maintain specie payment. And another
and most serious objection is, that all indi-
vldnal debts created on deprecated paper
basis wonld have to be paid in gold, thus
Mt Il
as the premium on the gold now is
These impediments, especially the last,
are deemed so serious that it is quite gene
rally conceded that resumption must be
postponed to the indefinite future, awaiting
either hoped.for but uncertain nccumula.
latlons OF gold, or severe contractions in
the volume of paper currency--a remedy
which encounters universal oppositiou-or
for that Acradian time, when the generosity
OF the banks Will prevent their troubling
the Government for coin. Procrastination
alone will not solve the problem. The per-
plexitles besetting the question now will
continue to beset it SO long as no steps arc
taken to bring about a safe resumption of
the specie payments. Toawait the accumu-
lation of coin to the amount 5000, 600, 600,
as contemplated by Senator Morton, is n
remedy too slow to meet the eXigencics of
the case.
consequent upon resumption will be heard
in the future as well as now There seems
to be certainly nothing to be gained by de-
lay. Delay will unquestionably continue
indefinitely the evils we are now staggering
under-such as clouding the credit Of the
Government; causing our bonds to be
quoted abroad at about seventy cents on the
dollar; increasing the expense of carrying
on the Government by at least $50, 600, 600 a
year; depriving us of n currency with
fixed value; SO essential to enable the busi-
ness man to make reliable calculations with
reference to future operations; and last, by
dcmoralizing the minds of many with the
dangerous idea that the people, in their
collective capacity, are not bound by the
same rules or morality in the payment of
debts as are obligatory upon individuals.
1t is very evident that the problem is too
weighty to be solved by the financial intel
lect of the present Congress; and it does
appear to us that the best thing that could
be done under the circumstances, would be
for Congress to appoint commission of
five of the most able, influential and honest
tinanciers in the country, joining with them
if you please, four of the ablest financiers
of both England and France, to whom the
whole matter should be referred, to report
to Congress Mt their next winters session.
some feasible plan for its consideration. The
expense of such q commission would be
trlf1ing, In comparison with the immense
amount of benefits that would grow out of
the reference. At least, then, the next Con-
gress would be able to act more understand
ingly upon the subject than the present; for
it would be sure to elicit the results of the
experience and wisdom of those who have
devoted their whole lives to the close and
comprehensive study of financial problems
Newak IN. j. Journal
resolution passed the Florida Lepisls-
tnre, authorizing the Government to APPOINT
three commissioners to visit MONTGOMERY
to negotiate for the transfer of that portion