The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-12-10

SPECIE RESUMPTION.
The ability OF the country to resume specie pay
ments will not be due to any special legislation
upon that subject, but to the CONDITION OF us M
dus;rles, and TO its financial relations 10 otaer
countries These, Of conrse, Will be more OF less
dependent Npen the general policy or tne govern
ment. Tie war exhausted the country OF It's ma
terlal wealth, and the States or the Sontn were
Utterly impoverished. A necessary condition lOr
the resumption Of specie payments was the de-
veopment Of the industry OF the nation, both
South and North, and the consequent accumuln-
ton OF the movable products OF industry to suca
an extent that our exports Of those products
should be equal substantially to our imports. SO
long as IL is necessary to pay for merchandise
imported, by the transfer OF government Donds
or other evidences Of Indebtedness to other coun-
tries, SO long will 1t be impracticabe to resume
and maintain specie payments.
When the products OF industry exported shall
be equal substantially to the products ol elhef
countries imported, there Will be no demana LOT
spccie for export, except what may arise IRON
the circumstance that our bonds held ABROAD are
sent home. sold In our markets, anu tne proceeds
exported in coin. When the credit OF the coun-
try shall be fully established In Europe and tnere
shall be no doubt either Of ability or disposi-
ton 10 meet ali our obligations, bonds heretofore,
and now TO large extent, held by merchants
and bankers, Will be transferred TO capitalists lot
permanent investment. When this ohange snall
have taken place, the probability OF our securities
being sent home unfer the influence OF pontlcal
or financial disturbances in Europe VIII be very
slight; and when, rs q concurrlng !act, our eN,
ports, exclusive public securities. shal be equal
to our imports, specie payments may be resumed
without even temporary embarrassment to the
business Of the country.
SHIPS AN ELEMENT OF STRENGTH.
One of the most efficient means OF strengthen
ing the country in its financial relations with
other countries IL the development OF our COM
mercial marine. The returns snow lnaI IA very
large amount OF the foreign trade is in English
hands. We are not only thus dependent upon
rival country for the performance Of the business
which should be In the hands OF our own people,
but our ability to maintain specie payments IS
materially diminished. If tile entire lorei2h
trade of the country, both OF exports aud I'M
ports were carried on in American ships, the
earnings would not be less than seventy-nye mil
lions OF dollars year. AT present tne ireienls
Of the foreign trade in American ships do net ex-
ceed twenty eight millions OF dollars. were the
trade exclusively in American hands. q large part
OF this difference OF forty-seven million OF dollars
would be due TO citizens OF the United States, anu
payable In other countries.
This amount would be thus added to our ability
10 pay for goods imported from those countries.
If, for example, an American eltlzen purchaseu
in New York thousand barrels OF llour
for SIX thousand dollars and export II 10
Liverpool in an American vessel, and It Is there
sold for seven thousand dollars, bill OF eXchan9e
may be drawn against the proceeds, and an invoice
of goods Of the value OF seven thousand dollars pur
chased In England entirely llquldated, although
at the customhouse at New York there would Dc
an apparent balance against the country OF one
thousand dollars. But If, OH the other hand, the
thousand barrels OF -four are exported In BRITISH
vessel, the proceeds Of the -four realized In New
York, aud which can be applied to the payment OF
goods bought In England, Will be only SIX Thousand
dollars, and there Will remain an actual balan &c
against the country OF q thousand dollars. THIS
familiar example shows the importance Of re-es-
tablIshlng eur commercial supremacy upon the
ocean. And l deem Ii therefore essential TO eur
prosperity that the shipping Interest OF the coun-
- nt m a n
but also rs an essential agency In enabling the
Governments TO institute and maintain specie pay
ments. II is an interest also which, III ts ucVel-
opment, is as important TO the States and people
remote from the seacoaSt as 1t Is to the maritime
sections. Every addition to our facilities Tor tie
export OF the products OF the interior Is as advan
tageous to the producers as to the merchants and
slipbuilders OF the coast.
RESUMPTION OR REDUCTION.
While do not anticipate that 1t will be necessa-
ry TO delay resumption until our proper CONNER
cial position Is regained, | am satisfied that the
development Of the navigation and snlpoulldlng
interests will improve the credit and rapidly aug
ment the wealth OF the country. The suggestions
that have made indicate my opinion that u Will
not be wise to resume specie payments whlle so
large part OF the interest-bearing DEBT OF tue
country Is represented by $50 bonds, and held by
European merchants, bankers and manulactur-
ers. Questions that have been raised IN regard
to the nature OF the obligation assumed by the
government In the issue OF these bonds nave un-
doubtedly deferred many persons from purchas-
ing them as permanent investment, and conse-
0uently they are largely held In this country and
In Europe for speculative purposes by persons
who design to put them upon the market wien
ever the advance shall furnish sufficient induce
ment. or when political or financial disturbances
may create q demand for money or other pur-
poses
Is Is probable that from seven to nine hundred
millions OF these bonds are now held In Europe,
q
viii dispose OF them under the influences 10
which have referred. Such panic rs existed
In Europe in 1866, at the opening OF the Austrian
and Prllssian war, would be likely to induce the
return Of n sufficient amount to this country for
sale, TO emuarras5 business, and In case oI re-
sumption, 10 cause the suspension OF the BANKS.
il IL, therefore, III my Judgment, essential tnat
the larger part OF the flve-twcnty bonds oe Win
drawn. AMI that other bonds be substituted in
their place Issued upon terms and conditions
which admit Of no doubt. In I'll c, tile practical
question is not merely the resumption OF specle
navments (lS q measure by itself II IS not dlll'
emit. but the problem is to resume under such
circumstances that the position can be main
tained not only In times Of tranquility, but also
In periods OF excitement aud peril.
Our course, 1t seems 10 me- Is plain. Every
measure or the government bearing upon the
subject should tend 10 appreciate the value 0l our
paper currency. IL Is probable mat some de'
creasc in the volunie Of paper VIII ultimately pc
necessary, and |. therefore, respectfully suggcS!
/
witk authority TO reduce the circulation oi United
States notes In an amount not exceeding TWO mil
lion Of dollars IN any one month. Thus VIII The
country be brought gradually ii NAY be. ana yet
without disaster, into u condition wien tie re-
sumption OF specie payments Will be easy, II not
unavoidable.
UNITED STATES NOTES AND BONDS.
On the LIST OF December, 1869. the principle OF
;he pnblic debt of the United States, not deduct
inc bonds and cash on hand, amounted TO 81
COS $50 7S9 50. or this amount the sum OF SJb0,
ll32jS SO Is represented By United States notes
not bearing interest. The larger part OF this Is
needed for circulation, but the amount can he
reduced from the ordinary revenue OF tile coun-
try, IL Congress shall consider 1t eXpedient 10
make provision for such reduction The fraction
al currency in circulation was SS SS5, ,5Gf 6o, ana
there Is no occasion fur any legislation In refer-
ence to this item OF the public debt. There were
outstanding. also, certificates Tor gold dep0slted
in the treasury to the amount Of $50, ,S62 s4e. The
certificates are redeemaDle on presentation.
These three itctps amount III Tile aggregate 10
S43l SCI, 7GS IS, and in making provision Tor the
nublic debt they are n0t necessary 10 DC COLI
sidGred.
on the loan OF January l, 1861, the sam of
81 O22, 600 is outstanding and payable on tue lsI
OF January 1871. The loan OF lSjS, or S2e 600,
is payablc in 1919. The bonds known AZ ten-lorIy
bonds, amounting to Sl94 1901, ,3OO are NOT pay a.
bic until 1874. The six per cent. bonds, payable
I'm 1881. amount TO SoS3, 3,617, Goo As the bonds
known as eighty ones AMI ten-iortles, amounting
i'm the aggregate to S4TS2 q90 are not due and
cannot be paid previous 1874 and 1851. 1t IS un-
necessary To consider them in making provision
for u new loan. The lirc-tWenty bonds, amount
ing in the aggregate 10 81 COZ 81. .1J0 are either
due or will soon hecOme due, ana 1t Is 10 THIS
class OF the public debt, and to this class alene,
hut nff n kim should he directed.