Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1871-01-17
REsUMING SPECIE PAYMENT.

@NA@SS @-@4ANa "a 3O44 - ! mhH La
Gov. Hoffman, of New York, in his recent
message to the Legislature of that State, de-
votes portion of it to consideration Of the
resumption Of specie payments. The fol.
lOwOWing is his plan which will be read with
interest:
"The Federal Treasury has $50, 900. 600 of
coin OF its own on hand. Its gold income
amounts TO nearly $500, O00, 600 year. OF
this only $40. OOO, 600 year is required for
interest payments. II the policy of selling
II stopped tor one year the Treasury will have
sum At least 500. 600 600 in gold available
Tor The redemption Of its legal tender notes.
"ln relation TO the obvious objection that the
retention OF gold in the Treasury necessary to
accumulate the reserve Of 500, 900 900
would cause an extraordinary advance in the
gold premium, Gov. H. states, in the first
place, that the mere announcement Of the re-
sumption Of specie payments at n given date
would check gold speculation. Il would not
be TO the interest of parties to buy it, except
for immediate use, for payments Of customs,
because the premium would soon cease entire.
". II, however, il becomes necessary to dis.
burse portion Of il TO relieve the market, this
could be done. But the balance should be
carefully reserved for the purpose intended.
THE gold revenue Of 500. O00, 900 would
be ample to sustain specie payments. The
legal tender notes outstanding amount 10
total OF 1896 100000 This leaves proper.
ton OF one dollar in gold TO four in paper
a sum amply sufficient to sustain the credit of
the Government, and maintain specie pay
ments. In private banking one dollar in gold
to five in outstanding notes is regarded as safe.
The Bank Of England, in effect, sustains
specie payments throughout all England on
smaller amount of specie than is regarded by
Gov. II. rs necessary for resumption by our
Government.
The notion that the Banks canuOt sustain
specie payments is refuted by the fact that in
1867 they paid their debts in legal tenders
worth IS cents in the dollar, and last year
they paid them in the same medium and with.
out any apparent strain, when their value had
increased TO % cents in the dollar. There can
DO NO doubt that they can redeem their obi
cations with equal ease in legal tenders, at
one hundred cents to the dollar. 1t is only
necessary that the Government should take
the initiative in this matter. The Banks can
not resume because the Government does not
do so.
Gov. II. opposes contraction, as disastrous
IN the past and ruinOus in the future He
also opposes any withdrawal of grcenbacks for
any other kind of currency, aud insists that
all that is required to make U. S. notes per.
tectly sound is that the Government should
be ready to redeem them on demand in such
proportions as are likely to be presented for
that purpose. The currency is popular at
present, aud will be rendered more so by the
policy OF redemption.
The Governor regards that speedy resump-
ton. reduction of taxation. aud tariff reform
as absolutely necessary to the prosperity Of the
country.
The credit of the Government is insepara-
bly, bound up with the redemption of its de-
mand notes, and all its resources should be de.
voted to that and abandonment of the absurd
plans Of restoring specie payments by placing
bonds at par with gold. This result can only
be obtained by redemption Of the legal tender
notes.
Ii is inexcusable, Gov. r. thinks. that the
Federal Government should have so long de.
layed the resumption of specie payments
From the :lose of the war in April, 1868. to
june, 1870, the Government received S024.-
100000 in gold. II it had laid by only one
dollar in specie out Of every five that it re-
ceived for the redemption Of its demand notes,
it would now have total Of $3.50 900. 900 in
coin of its own to resume specie payments :"