New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-09-10
OUR FINANCES.
MONEY AND CURRENCY
a. razor Of The Tribune.

rar, ON "Cnrrency and Resumption in y0n - tto
the LIST instant and shall rejoice II MS ia and the
proper office OF gold and silver can DO "oV 80 81 s,,
necessity for their use curreh'! - IN ~ ev.
stitutlon OF paper, which, In no'ee' " , $3.50, of
No Or ssera ~ credit forms the IeaI cui'h'' -
the commercial world He says 'roS' ,e.,a+,or
the creation Of monetary yaIne' puI .no ,,sod.
sir,Dlv ~ the weight aud hneness OF inc MN -,
that ia the intrinsic value OF inc Pe0 III, mot the
:, n,.h the money Is made" lie claims Ius'ly nc
- 49,, \. have a value independent OF leg'l"'io'
"a tbarefore that they are the Oe'' suoS'' .,oa
money aud this, in spite OF Ihuc" - oractce
So IA What ali nations have recoshi@ou " f,i,,,
- 90, al YER having by common consent d p -
and having power everywhere, de'ern - c,o6
and hnenGss, ana not pJ 'n0 '
by legislation . 20 thing TINT after
~ Couslderaut, however appears 70 ~, -,
an Iocis;atiou must bo invoked 10 determine INC 'o
90 naner currency which he would SUBSTITUTE III VA'9
countrv for gold and Of which he supposes soho
h1eds NJ millions would DO required, upon returning
"a the specie standard under our ola system Of mike"
currepcy II is 20 be regretted that lac has not peeh III
formed how our NeWEnglard bankers, nearly nan cen
tury since agreed voluntarily that all their notes Wcn
flowed 10 Boston, as the natural TRACE center sou" O'
there redeemed by agents of the Issuing country o"AS
and TINS made good, nearly as good as the Guy
notes. and this step rendered the use OF specie III vac
country quite unnecessary, as balances IN Boston, result
ing from the sale Of products Of our labor
desirable The establishment OF the clearinghouse
which enabled all the city institutions to settle by eH-
change Of indebtedness not only reduced st more the
amount OF coin required, but substituted CHECKS LOT
notes so that the amount Of these was sehsluiy uul
ished and all banking exchanges were mueh Siph
fed Uutu March, 1860 however, there had been as
elimination of one day against the country notes.
that time being required to pass them through
the proper channels and bring them par with city notes
1t was then that the Legislature for the FIRST uhe eA
cised its power and recognized the Importance OIL S
system OF redemption by requiring that the CITY hsuu
TONS acting as agents for those in the country anu
taking their notes. should accept them at par on the III
s,ant and thus make all subject to the law, equal 10
specie funds having the same paying and purchasing
power as gold.
Pro0ung by our experience would suggest instead OF
the plan proposed by NJ. Considerant, that Congress
should simply require, under sufficient penalties Ior nan
ure that all notes supplied the banks to be issued DJ
them payable on demand. and used as money sDouu DC
made at all times equal to specie at the commercai cen
ters toward which they flow in the natural course VI
trade; the clearing houses in each OF tnese cen
ters should redeem at common oenter-say IN new
Yorkso that there should be no IN circulation any
where throughout the country not good as
funds or specie And these notes should pay ahDuay
into the general treasury equitable proportion OF tne
profit on their circulation that the loss to the people
in their might reimbursed and the Panks rendered.
less liable to the temptation OF over-issue.
Our object should supply just the required amount
OF this particular kind of currency leaving that Pon
however to be determined by the wants OF commerce.
which are constantly changing, ana cannot Dc met Oy
any legislation or official action 1t must DO remembered
that the cheek the cashier has the same power as h
note and that ali checks drawn upon existing credits
are currency money just Ike the oahk note
All this paper il it is worth anything, promises the
when due the holder shall have that in exchange when
will purchase and pay gold could ana al suci paper
IA what the commercial world always has used' ana
ALWAYS will use as currency in spite Of legislation or the
theories OF our learned professors Our bankers can uu
with sufficient provocatiOn may call in their notes. ue
mand their bonds sell these and raise FUNDS
for legitimate business, and then draw their checKs Oh
funds at the clearing house. and so on to any extent III
spite of Congress- any other power The right 10 Trans
fer our title to property whether hxed or floating is In
berent and not permssve and the form OF the paper
used for this purpose something that must be fixed by
the parties TO the contract, and not by legislation we
NAV aHd before We are done with this ques-
ton, that Congress cannot prevent the issue
Of bank notes, paper having the same
farm aud that all do IL TO refuse to take any
paper except such good az gold at the great cen
tra clearinghouse which, with its branches, should Keep
and dissurse all the Government revenues without
charge or loss and pay reasonable interest the pub
lie deposits as has been by banks for Mas
sachusets for than sixty years. and should be
done everywhere.
We do not need gold as currency, sub-treasury
nor has there ever been any for either
paper measured by gold better for currency anc
banks, under sufficient bonds, better fiscal agents
than sub-Treasury We a truly free, natiOna
system OF banking, which shall be seltregulatIng
and requires legislation except the provision
for the redemption OF the notes and paymen
OF the tax. The number and location Of the banks
amount q capital notes issued, Of interest and al
other matters of detail will readily and safely adjust
themselves If we but provide that will accept pub
lie only such conform to simple
equitable conditions which apply TO all alike, and viii
secure all possibly require in all time to
But we must first return to the cid standard, and
have to thank NJ. CoBsiderant for the plain
manner in which lie has shown how this ought to be
DONE and how IN fact it be DONE safely and at once
Congress viii but recognize the rights Of the debtors
Of which President speaks in his inaugural, and
which must be respected before take the least
step toward resumption. Repeal the LegaTender act in
staner, and thus not only permit, but compel all con-
hereafter be made by the old specie stand
ard providing at the time that existing contracts
made in currency SHALL they fall due, be paid they
would have been, at their specie value, If due the
date Of repeal 1t Is simply inexcusabe folly suppose
that the millions Of debtors In this country, increasing
number and influence every day. will permit their obi
cations to be augmented Onehird by resumption with
out provision for the contracts existing payable
dollars worth only rs cents Mr. McCuloch has tried
this, and so has Mr. Boutwell,, and both failed as they
will hereafter The debtors viii permit gross
justice which resumption would impose upon them and
the the proposition Of NJ Consderant is adopted
the will resumption come. and the country be at
peace. DAVID WILDER.
Boston, Sept g. 1869.
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