The Rock Island daily Argus. [volume] (Rock Island, Ill.) 1872-1873, 1873-10-06

The shrinkage Of values, the approx
nation of currency and all other things to
gold, and the consequent temperance Of
gold in small quantities as a medium of
exchange in place Of currency, which are
attending the present monetary disturb
ancc, have diverted general attention to
the possibility aud propriety OF re-estab-
Hshment Of gold and silver as the current
money of the country. Some very strong
demands in the East and some weaker
ones in the West are heard in favor Of the
measure. A tide Of gold has set in from
Europe to this country. and nearly every
steamer from Liverpool brings a lot Of gold
as part Of its cargo gold contracts are be
coming common in New ork, and we hear
of them now and then, in the West.
These facts are quoted as indications Ia
voring return TO specie restoration, and
we are urged TO make strong and united
effort to accomplish that restoration. But
20 one tells how it is to be effected. \
great many persons think it can be done,
and that now is the time to do it ; but
when we ask them for method, they fail
to furnish IT,
Il cannot be done at all, except by act
Of congress, for this simple reason: Ii
was the government that first suspended
specie payment, and we cannot get back
tO specie payment unless the government
resumes first. The government has issued
its own treasury notes lEreenbacks to the
amount of $3.50, 100000, and fractional
currency to the amount OF S44, ,j9l ;
and in addition 10 this the President re
cent letter 20 Claflin 4 Co. of New York
informs US that the Si4,0OO,U0O reserve,
as il is called-the amount of greenback,
retired by Secretary McCulOch in his
monthly coutractiOns Of the currency
regarded as being in the treasury to b,
paid out as the government may need 1t
This makes total OF S444, ,jyl of trea
sury warrants, nominslly redeemable il
gold, but actually inconyertible-a forcet
loan from the people without interest
which would have 10 be paid in gold, if
resumption of specie payments were pro
claimed As the government has onl!
So, 6g7. $40 Of available gold in the treas
ury One-h half OF which il will need to pal
it, November and January interest, it i
evident that il is in noconditiou 10 resume
coin payment. Another consideration i
this As the S444, $50, j9l greenbacks arr
nominally redeemable in gold, 50 the 1927
O92, 752 Of national bank notes outstandin
are redeemable in greeubacks. Kesump
ton, therefore, would bring a hard strai
on the government, 20 be transmitted b
it to the national banks, and by them t
the people The fortunate ones would b
those few who have money in their pock
cts and drawers, and those to whom debt
are owing: the unfortunate ones would b
those who have no money and who Ow
debts 1t would transfer 10 to II pe
cent on all debts from the latter elias
10 the former, aud If the transfer were va
id, would seriously mjure every weak ban
and every debtor corporation and indiyiC
ualin the land, and benefit the moucyed Ea,
at the expense Of the agricultural Yves
1t is desirable that we get back to speci
payment and to a money that will hold il
own abroad az well as at home but ho
to do it equitably and easily, with as littl
shock rs possible 20 debts and values, is
delicate question that cannot be too cart
fully and conservatively handled. Thel
is comparatively little gold in the countr,
1t has been demonetized for all purpos,
but one-that of paying duties and Il
result is that, not being needed here, it h;
flowed 10 those countries where it is nee,
ed. Texas and California did not partic
pate in the original suspension of spec
payments, and deal chiefiyin specie To tn
day but even they have too little coin +
the purposes Of their trade, and, under Il
efforts made by the government to for
currency on them, have been, for ye
past, gradually accepting it.
1t is probable that any permane
scheme Of resumption will have to inyOl
the feature Of paying interesto on the gree
back issue Of 500, 900. The iractio
al currency might, and should be replac
with silver, the necessity for small chan
would keep the silver in circulation, ev
under the present state Of things. 4
greenbacks are forced loan without int,
est if they were made 70 bear intere
or convertible into small bonds Of $50 eaC
at par, this of itself would bring them t
par with gold, aud destroy the desire
draw gold on them With the option
converting them.into gold, or interest be-
ing bonds-the treasury reserving t
right to redeem specified sums, partly
gold and partly in bonds--there would
no rush for gold in exchange for the
The entire currency Of the country,
uonal bank notes as well as greenbacl
Delng convertible into gold or its eaui,
lent would become as good az cold. and ,
inducement to conversion be destrov
At the beginning Of the experimeni
would have thrss kinds Of money, a