Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1871-01-06
Resumption Of Specie Payments.

Gov. Hoffman of New York, in his recent
message to the Legislature Of that State. de-
votes a portion of it, to a consideration Of the
Resumption of Specie Payments. The follow
ing is his plan which will be read with interests
The Federal treasury has SAC: 900, ooo of
coin of it's own ON hand. Its gold income
amounts to nearly 5000, 200 900 year vi
this only $l2O. GOO, 600 year is required for in
terest payments. If the policy Of gold.selling
is stopped for one year the treasury will have u
sum of ut least $I0O, 900. 600 in gold available
for the redemption of its legal tender notes,
In relation to the obvious objection that the
retention of gold in the Treasury necessary to
accumulate the reserve OF $lO0,OOO,UOO would
cause an extraordinary advance in the gold
premium. Gov. Fl. states, in the first place
that the mere announcement OF the resuptlon
of specie payments at giveu date would check
gold speculation. 1t would not be to the interest
of parties to buy it, except for immediate use,
for payment of customs, because the premium
would soon cease entirely 1t, however, 1t be-
comes necessary te disburse portion OF 1t to
relieve the market this could be done. But
the balance should be carefully reserved for the
purpose intended.
The gold revenue of 500, 100000 would be
ample to sustain specie payments. The legal
tender notes outstanding amount to total OF
$39j .0OO, 0oO. This leaves proportion OF one
dollar in gold to four in paper-a sum amply
sufficient to sustain the credit OF the Govern
ment and maintain specie payments. In pm
vate banking one dollar in gold to hive IN out
standing notes is regarded as safe. The Bank
of England in effect, sustains specie payments
thronght all England on smaller amount OF
specie than is regarded by Gov. II. rs necessa-
~ for resumption by our Government
The notion that the banks cannot sustain
specie payments is refuted by the fact that in
1867 they paid their debts in legal tenders worth
- cents TO the dollar and last year they paid
them in the same medium aud without any ap,,
parent strain. when their value had Increased
T., ~ cents on the dollar There can he no
doubt that they can redeem their obligations
with equal case in legal tenders At one hun
lrrl cents to the dollar 1t Is only necessary
thai the Government should take the initiative
in this matter. The banks cannot resume be
cause the Government does not do 50.
Gov. H. opposes contraction, As disastrous IN
the past and ruinous in the future. He ais"
opposes any withdrawal of greenbacks Tor any
other kind of currency. and insists that all that
is required to make &. 5. notes perfectly sound
is that the Government should be ready to re-
deem them on demand in such proportions s>
are likely to BE presented for that purpo>e.-,
The currency is popular at present. and vii! be
rendered more So by the policy OF redemption.
The Governor regards speedy resumption 4
reduction of taxation, and tariff reform as abSo-
mtcly Necessary to the prosperity OF the coun-
try. :,
The credit of the Government is iuSeperably
bound up with the redemption of its demand
nuteS. and all its resources should be devoted to
thar ana to abandonment of the absurd plans OF
restoring specie payments by placing bonds at
par with gold. This result can only be obtain
ed by redemption of the Legal-teuder notes.
1t is inexcusable. Gov. H. thinks. that the
Federal Government should have so long de-
laycd the resumption Of specie payments
From the close of the war in April 1868. to
July 1870 the Government received S924. ONO
in specie out of every FIVE that it received for
the redemption of its demand notes, it would
now have total of $3.50, ,000 in coin of It's
own to resume specie payment.