New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-27
SPEECH BY MR.. BARNES.

fw RANGES nb was mauy directed to an argument against
contraction Of the currency the conclusion Of which be STATED bis
own views, as foliOws;l
boneAcia changes can and ought to be made in
the banking svstem: but look upon it not likely TO be
DONE and pass this point to state wnat the Govern
ment can and ought to DO.
J. Iegaiize gold contracts.
Q Prohibit tie sale OF gold.
8 Compel the banks TO retain the gold received as In,
teres upon bonds as legal reserve I'm place OF legal
tenders the Government destroying the amount OF legal
tenders which the gold will cancel at the current pre-
MUM. 49,
a Compel the National Banks to deposit additional
s. Devote the surplus Of It's gold beyond t6OCOOOCO to
retiring legal tenders as above indicated. go
g. Fix the volume Of currency it now exists that 1t
stitution, dollar for dollar
T. Declare that It's egal-tender notes shall be the first
class of obligations which it will pay
Fund portion OF our fvetweny bonds now held IN
Europe into five per gold bond principal and inter
The effect OF this legislation would be
First: Gold would be invited from its hiding places
would flow from abroad into our banks and clearing
houses money and into storehouses as merchan-
disc.
Second, The must retain gold to be enabled
to pay gold.
third The national banks would then assist rather
than retard return TO specie payment. :, "a.
Fourth The currency OF the country would be MADE
perfectly and would be Invested of all panic tea
ture the principal disturbing element and fear OF DuS
men at the present time. =,
Fifth: Demand obligations, Treasury notes beng 1e-
sroyed rapidly the is replaced by gold at the
current premium Of gold at the datet not only lessons
their amount and enhances the value OF the REMAINDER
but il gradually puts gold in circulation and does not
change the amount OF our circulating medium In any
way. ,.,-.,
policy OF tho Government TO the volume OF It's crcula
On thereby stimulating proper Investment ana reSu-
lating interest, which Is now Impossible. -,
Sereth: Declaring that these demand notes snail DC
mont their value would be increased and the premium
upon gold prOpOrtionately reduced. .
EIGHTH SOme $500 900 or our hOnds arc supposou W
DO owned abroad In panic time they can DO so ueo as
TO draw the gold from the country BOND, pLln
cpa ana interest payable abroad would tend 10 prevent
an of the above tend to one general result the TIL
ing the soil the sowing OF Seed ana garnerlnR tno
r0ps tend to enrcng the husbandmaD This Is oil tho
Legislation which is admissible respecting specie
payments declaration upon the subject amounts
to nothing.
gold is the declaration which tonds to confidence Let
these changes be madohoders Of gold demonstrated
certainty that the premium must decline, the pron
IN holding gold ceases. and all become sellers.
Our Iegatender currency should be dispensed win as
rapidly replace 1t with something Detter DnI
no faster The public evidently estimate that IL VIII re-
duTe from six eight years 10 redeem these notes. the
IS per cent discount which they stand being rep
resented by interest at five per cont Tor
supposed TO be nearer. The discount, as shown
in the price OF gold, was corrospondingly' less.
Let it be demonstrated that they can be paid sooner
than this and the premium upon gold VIII decline IN pro
Bile at fixed date and drawing six cent interest IS
selling at a. that rredeemabe note, drawing no inter
est Will sell for more barring the advantage the latter
has In being circulating medium.
The general principles OF this plan cannot fall Ihey
offer to the creditor all the security In available form
which tho nation can COLLECT together not only security
az to the correct Appropriation Of what II has, but tho
additional security that Will not lmpOverh the popo
medium and leaving their debts like Rhostly skeletons
leaning against their doors. .....