The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-12-22
The Prospect Of Returning to Specie
Payments.

since July, 1867, the second year OF the
war, when the difficulties and cost Of that
stupendous struggle began to send the pre-
MUM up higher. This was nearly ten years
ago. The fluctuations have been great during
that period, and were governed principally
while the war lasted by the varying successes
or failures of our armies. Since the war
closed the tendency has been downward,
though there has been at times spasmodic
rise caused by Wall street speculations,
political affairs at home or troubles in Europe.
general tendency, as we said, has been down.
| ward all along. We are now in the seventh
year since the war ended and have nearly APP
preached specie basis again. In fact, If the
difference of exchange between Europe and
this country be not taken into account, we are
rest of the world. There is no reason, then,
why we should not soon return to specie pay
ments.
1t took England eight years more, after the
prolonged and exhausting wars with the first
Napoleon, to restore specie payments. Seve-
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ment, between 1915 and 1928, to accomplish
that object, but without success. 1t was a
forced measure at last, and perhaps forced
rather prematurely, for the nation experienced
several financial revulsions subsequently, and
within the course of few years. Times have
changed great deal since that period. While
the United States piled up larger debt in
four years than England did from the Napo-
leonic wars, and the destruction Of property
with us was incidentally greater-civil war
being much more destructive than war outside
nations territory-the condition of this
country and the circumstances Of the times
are more favorable to an early resumption and
maintaining specie basis. We have grown
up steadily and in healthy manner to the
present improved state Of things. Specie and
our paper currency have been approximating
to par without the Intervention Of govern
ment, and through our resources, industry
and the laws of nature and trade There
has been at times disposition in Congress
and the administration to force specie pay
ments by contracting the currency, but this
was checked by the voice of the people and
the interests Of trade. We have over and
over again since the war warned Congress
not to be too hasty, and have asserted that
decline Of gold would point out the time for
resumption. Facts have justified us in our
arguments and prediction. Had the British
government been guided by like views after |
the Napoleonic wars, and not been too eager |
to force specie payments, England would have
followed resumption. We have passed the |
Scylla and Charybdis Of national financial diff
Guilty and may now prepare to return to specie
Several movements have been started In |
Congress since the present session commenced
with view to bring about resumption. The |
House COMMITTEES Banking and Currency
have been considering the question, and bills
that have been introduced relating to it have
been referred to subcommittee for examina-
ton and report. 1t is said that this sub
committee will be prepared to report shortly
after the holidays and that there is
an impression the report will be
pnousty Al ioNOA VI cOmC mSuSuE0
for resumption. Mr.. Sumner, In the Senate,
is intent on urging an immediate return
to specie payments. Other Senators are seri-
ously considering the question. 1t is clear,
too, the President and Secretary Of the Treas
ury are favorable to resumption, If that can
be accomplished without deranging the
national finances. The tendency Is In every
direction to that end. The very action of
Congress, If determined and able to provide
for resuming specie payments, will have the
effect of bringing down the premium on gold
lower than it is at present, and will make the
change easy. We should not be surprised to
see specie and greenbacks at par during the
progress of legislation on the subject. If no ex-
traordinary event or disaster should happen
and there is no reason to anticipate that-we
should return to specie payments, probably,
as quietly and insensibly as the dew falls upon
the facility of the operation.
There is one mistake, however, which Con-
gress seems disposed to run into, and which
must be avoided. congressman appear to
have the Impression that the legal tender
greenbacks are In the way Of resumption, and
that they must be got rid Of, or a large amount
Of them, at least, be Withdrawn and cancelled.
This is the old theory which the specie
payment question have been harped upon all
along. Yet they learn nothing from the fact
that the existence of the greenback legal ten
ders has not prevented the steady decline In
gold and graded approximation to specie
basis. 1t is question whether we should
not have reached specie payment before now,
il there had been no other currency than that
of the legal tenders. The object has not been
and is not really to contract the paper circula-
ton Of the country by Withdrawing the green
backs, but to substitute national bank notes in