New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-12-07

with the execution OF the sale Of moderate amounts Of
com in Chicago NewOrleans, st. LOUIS and Baltimore
for the payment Of duties, the sale Of gold ana Inc
purchases OF bonds have been made uniformly through
the agency of the United states Treasurer ID new OH
and without any expense TO tnG G%'f fn the
proposals The average premium on gOld SOFA ens o
March has been 80 $40 per cent and the average ~
MUM PAID for bonds has been u $500 per cent hods
this basis OF the sales Of gold and the purchase OF o
average price paid for bonds In coin has Deeh %
r'' ''''' TIE SINKING FUND.
Tho Act OF Feb % 1862 provided that the com reco'eu
FOR duties upon imported goods should ne ahhu'' s
apart as sinking fund 10 the extent OF per eehlu ="
the entire debt OF the United States In eo9oroy mi,
this requirement., have purchased DenI IgiTG TO the
sinking Fund. These purchases are suOS''"''"' N''
IIsgSo T w. b of March as have not felt myself
autI0rzed or required 10 make any provision TOT Io
limo mn clanScd after the passage of the act ana pre-
in0s to The ccmlneucemcut OF the Administration with
the excess of means at my commute .' , sjD,
bonds in addition to those purchased Tor Ih9 Sinhng
FnUd 10 the amount Of So $4,000 These are held as
special find sn9ggt I'd ' that thew be added to the
SINKING Fund, aud that any further purchases thnl may
tnt f1d canal TO that which would have been created
there had been delay in the execution OF the law
TIE DEPRECIATION OF TIE CURRENCY.
Tho depreciation Of currency is due TO two causes:
First an excessive issue and. secondly 10 the want OF
faith in the Government And the extent OF the influence
Of the first named cannot be ascerained until the
second is removed substantially whenever our creut
shall he much improved at nome ana aplOau' 'naC
holders OF bonds are disposed 10 retain theh even
when the public mind is excited upon financial sGyge,s
shall be able 20 Judge more accurately tno 80 l
the over issue Of paper money II Is also true It o
quantity oil currency necessary Ior we a ~ III o
business OF the country cannot hoN DC IAte ~ ~
Since the Of tho war the wants OF the STATES OF inc
e0dth nave incI Jsvu, am I N otlar Secons 10
81 currency mas Deel Wl.lu.t".l M, o'ACn an, Tces
supply the demand there created Inc amount leCs
cary Tor the Rarp9ses OF the South WI" ''e"uny
oI c' "fctSn Of the Pacific Railroad is likely
result I'm substitution Of paper for com by the people
the Pacific Coast. Is probable that INC dlnnu iVI
uauer for that purpose viii not be less than S5OO00O
As Cd
withdrawn from circulation ana thus, practically, the
com Will Increased upon the Atlantic Coast and the
paper circulation the States Of the Rocky NOM,
Jams viii be materially reduced These changes WIl
tend 10 diminish the difference between paper anu cOu
wurN 10 RESUME SPECIE PAYMENTS.
The ability OF the country resume specie payment
viii be due 10 any special legislation upon that sud-
jeci but TO the condition or its industries and TO the
financial relations to other countries These OF conrsr
Of tAc Government. The exhausted the country OF
It's material wealth. and the States tire South were lit
orally iuu0verished. necessary condition for the
SUMPTION of specie payments was the development OF We
consequent accumulation Of the movable product OF
industry 10 such an extent that our eAPorIs o. oso %
ducts sAorl be equal substantially 10 our 80
long as necessary to pay Tor merchandise imported
by the transfer OF Government bonds or other ey,GehGs
practicable to resume and maintain specie payment.
When tho products Of industry exported SHAH be equal
substantially to the products OF other countries i'm
ported, there VIII be no demand Tor. specie LOT
that bonds held abroad are sent home s3l ia our
markets and the proceeds exported IN coln MISn to
ana there shalbe doubt either Of our ability or dspU
stion TO meet all OF our oongalHns Oonus n1IttO"iG
bankers wiz be transferred to capitalists Tor permanent
When this change shaIhav taken place the probabil
" securities being sent home under the influence
Uf political or financial disturbances IN EhSanu' WIZ DO
very slight and when. as concurrent fact our exports
exclusive Of public securities shall be Sqnat 10 our I'M
ports, specie payments may be resumed WITHOUT tEen "
Temp embarrassment TO the business OF the country
OUR CONlMECIAL MAEINE.
One Of the most efficient means of strengthening the
ia
the development Of commercial marine The returns
show that very large OF the foreign trade is in
English hands. We are not only thus dependent upon
should be in tie hands OF people hut our ability
10 maintain specie payments Is materially diminished II
ana imports carried in American ships the earn
ings would less than S7JO0COO year. AT present
The freight Of the foreign tfade IN A5e'ICa1 s 20
not exceed SsOIOOOO. Were the trade exclusively IN
COO would he due 10 citzCus Of the United states
aud PAYABLE ina other countries, thus amount NOm4 De
thus added to our ability to pay Ion goods imported from
Tf0rcxample an American citizen purchase in NewYorl
100 barrels OF flour forS6O and export 70 LIVERPOOL
ia an American vessel, aud it is there sold for $1,000,
iii OF oxcnauge may be drawn, and invoice OF goods
OF he value OF $1,000 purchased in England, although at
tine Cusomouse at NewIork there would o. IN appar-
balance against the country OF SOO Bnt H. on ho
other hand. the 1000 bagis OF -four are exported IA
York ard which be applied 20 the payment OF goods
bournt Ina England. viii be only $1,000 ana there w re-
main ac,ual balance against the country OF $1,000
Tb fam liar example shows the importance Of reesab
l-llu- commercial supremacy upon the ocean ana
.
shipping interests Of the country be fosered not only as
nuscy Tor 6ut also rs an essential agency IN
snab the Government 10 institute and maintain specie
payments II is an interest also which, III lts develop
ucu is as important the States and people remote
.ron the ,el coast. as II the maritime sections
Eyc! addition facilities for the export OF the pro-
% the anterior is As advantageous 10 e puuCe!s
~ 10 the merchants and shipbullders OF the land
WHEN TO RESUME SPECIE PAYMENTS.
While do not anticipate that it will be necessary to
delay resumption until proper commercial position is
rccaiued satisfied that the development Of the nav
isatOn AID shpbuldug interest win improve the cOndi
Hon and ,pGy augment the wealth OF the country The
fI,{ NV. made Indicate NV opnion that AZ
will be wise specie payments while so large
Iaft a the iuteresi-beaiug debt OF country rep
resented by IvetwCuty bonds and held by European
merchants bankers, and manufacturers Questions tDat
have he raised in regard 10 tie nature OF The obligation
assumed be- Tie Government the issue OF these bonds
have undoubtedly deferred many persons from puIcuds
inc Them as a ucfmaucut Investment and consequently
they are largely hold IN this country an in Europe for
rou ibr fl,krt Icicycr tie advance shall furnish
sufficient lduccment, whenever political or financial
Tn,,,sS Is iyni,le t,st from seven 10 nine humid
10 considerable extent by who VIII dispose OF
tbcm under the Laueuce 10 which / have
fcrred such panic existed In Europe IN 1856, al
the opening Of he Austrian aud Prusslan war would
be likely to induce the return OF sufficient amount 10
this country for sale 10 embarrass business and 10 case
OF resumption, 10 cause the SUSPENSION OF the banks IL
is, therefore nv judgment essential that the larger
other bonds be substituted ia their place, issued upon
terms aud conditions which admit Of 10 doubt.
In fine the practical question is not merely the resump
Of specie payment, measure by Iise IL IS not
difficult. but the problem it, 10 resume under such ccuu
times Of tranquility, but also IN periods Of eNcteqeut
and peril Our course, 1t seems to me- Is PLAIN Every
should tend appreciate the value OF our paper cur
reucy. IL Is probable that some decrease IN the volume
pecv suggest that the Secretary OF the Treasury be
clothed with authority 10 reduce the circulation OF united
States notes in amount not exceeding 2OOO0O IN any
one month Thus will the country be brought gradually
dt may be and without disaster into condition when