Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1873-01-30

OEUSF tIlSSS ctFCGi!iStttiicS@. u - sc&rcS-
iy probable that any considerable sum
will o. presented for redemption. II
presented, the notes can sgsin he paid
out ia course of pablic disbursement.
Specie payment can thus be resumsd
without contraction Of currency, and
with only chansea of nominal values
fer the real standard OfVsiue the " Grid
over.
The chief requisite is that the public
have assured confidence IN our ability
TO maintain resumption. This IS in-
t.i.pensabie, snd where il axietS actual
re.ieD ptio:l % payment o. coin is COM
parat;valy rare. Tbia confidence OK
credit cen be given by either OF three
sxresiients: First-AEsiaE5ssnce N The
Treasury OF 5 iar.s reserve II e0in.
sseond-Autbority IL the Secretary OF
tho Treasury 30 sail bonds for coin TO
maintain rsdampsica. Third-1o au-
thorixs an Hitimste rsdsE1 rtioa, either
in coin or ho.d.. The ffst is subject
to the objection that il keeps idle vast
sum only needed in csse Of panic, when
it will be insufficient. The second is
.:iriset .s . sFsatss ehisction, that as
the power eosld only bs used in a
st-iESest EHeaey market, it will lead
to gr-st .aeciGees Of pahlie securities,
sEd a,.i sa=i 20 tie existing panic.
The third ssojS requires 10 reserves,
and implies that ths United States will
make its snaneisl redsDpsion is q
bend so iptria=icslly valuable that it
will be generally ss par in gold. I do
not overlook tins fsct thst resuIa ptioa
BY tbs United Ststes will test the
strength of the National Banks and
prove whsthsr or not they are entitled
to public copaieaee; bat thsir present
connection With al agsre=at: surplus
t,nd s.r beyond .he tliHersnce hetveen
currency and coia jnstifies tbs convic-
tion thst they will merit public expect
alton. wh,a the specie redemption
system beeomassfres, the huctuati0n Of
their curr.ne. viii be but the healthy
ebh and Aox of com ma s~cs.
The redstap ption then Will become =
tsct, and will cheek ths tendency ct
country banks to employ their curren-
C. 10 WsIl street .pecu!ation-as they
naay redeem in cola or in United States
notes. they will have the beHsfit Of the
alternative redemption provided as to
Unitefi States aote5, SO that the sscri-
Ace of sheir securities, thst generally
follo~s .p.cie payment during panic,
can 90 no fsTther than tbs payment Of
their bonds for their notes par for par.
Again. sis snerie standard will also
bring soIi aat silver coin iEto actual
uce. The siaount now boarded has
neea ,=7;ou.!y estir1ated, and with
that 6epo-i5ed in the Treasury, ard in
circulation in California, cannot De iess
than :2.g0, ,oao, Goo. This will probably
take the place OF legal-tenders as bank
reserves, and thus add to the present
volume Of currency.
Even ifspccie payments should cause
the retirement in coin funding of Fifty
millions United States notes, their
place viii be rnore than filed by coin
LET loose from its present punishment.
I therefore conclude that fears CT evil
results from a eRscis standard are
greatly exaggerated; that there will be
no contraction Of currency, no disturb
ence OF real valaes, or suspension Of
business, but all cur present United
States and bank notes will pass as usual
in the ordinary exchanges OF life, in
eres.ing the value OF property, wheth-
ef produced here or abroad; equal to
the real money of the world, and with
bo tsint Of di.hOnor or depreciation
about it.
Mr.. Sherman continued at length,
showing the obligation and necessity
ofspecie payment, and how the antici-
pated evils Of resumption could be
avoided, and said shat among the in
numerable schemes proposed for re-
sumption several we're practicable, but
A careful consideration OF the whole
subject led him to the conclusion that
the simplest and most cspsdient meas
ure i. to deeiars by Law that on and
after the hrst day Of January next the
United States viii redeem its notes,
either with coin, or, at the option of
tn. Secretary OF the Treasury, with its
bonds in convenient denominations,
bearing Ave per cest. interest in coin.
1t will provide also for the possible but
not probable contingency that more
notes will be presented than can con-
venientiy be paid in coin. 1t is found
ed upon the plain equity that if we
cannot literally perform our promise
by payment in coin We will at least
give TO the public creditor who holds
the notes OF the United States a bond
bearing commercial vsIue equal to
gold.
If, then, these notes are in excess of
the wants OF the people for currency,
they will be presented for redemption,
and ought to bo redeemed. If not,
their value viii be appreciated to the
gold standard, and this is specie pay
ment.
The notifications Of the banking act
can properly be postponed until fu-
ture time, when tho practical eject
npon tho specie standard upon United
States notes will test the ability of the
banks to maintain their notes at par
with United States notes. Whether
they should be relieved from maintain