Wilmington daily gazette., 1873-11-01
From the MY. .TribuaS. 4nilfls Y1s ~ |
SndgO Relley's Views On Finance

RESUMPTION HELD TO BR FURTHER OFF THAN
EVER-JUD1CIoUS EXPANSION RECoMMENDED !
AS THE TRUE POLICY. |
Judge Kelley says, in his Judgment no measure |
Of contraction, whether great or small, gradual |
OfaOFupt, would bling US to specie paymeuts- |
On the contrary a vigorous contraction would
produce wide spread individual and corporate
bankruptcy, and in ell probability disable the
toVernment for q time from paying with regular
ity the 300 100000 of gold interest upon our
bonds We are now, he thinks, further off from
specie payments than We would have been had
there not been great mistakes In our legislation
and the administration OF tho Treasury One
great obstacle in the way Is that so many of our
bppds, ,natonAl and corporation, are held abtoad
causing steady dTaln Of gold from the country.
Aelley says the anuIlAl amOEInt of interest hich
We @ are required to pay abroad, elO0, 100000. is
$40 OOO,0O0 more than the annual products Of the
gold mines Of the country. Besides the balance
Of trade has al along been against Us. While
this condition Ofafairs remains he regards an AZ.
INempt at resumption As absurd.
MS theory - That We must have cheap money
market, so that viii be 10 the interest ofcapt-
| tallsts 10 purchase and hold our bonds AID to
thus get them from foreign holders, so that the
L Gptn interest shall bo paid at home instead of
abroad. AmOng the causes that have produced
the present condtlon Of affairs Kelley places the
| retirement Of the compound interest notes, the
calling In OF the three per cent. csrtihcIteA the
payment of the seVen-thirtiea, and the formation
OF the V44,OUO,OOO greenback reserve. All these,
tAAuASt ptouuGcQ goutfAOAtOu, ulhOb money
dear, advanced the rate Of interest, and destroyed
the business OF the country. The absurdlty of
the proposition that the way to resumption Is to
resume, Kelly thinks, is demonstrated by the fact
that II the Treasury were 10 announce that It
would pay specie for greenbacks, the National
banks Pretering 70 hold gold rather than green
Daeksi would preseuV bills tor S1e6 600 600 or 80
per cent moro gold than the Treasury holds. Oi
coarse, he hanks would not be likely to pay GU:
the gold, inasmuch as their notes are redeemabIt
, in greenbacks and not In specie. The attempt tC
resume would result simply In the transfer Of tbs
gold from the vaults Of the Treasury to the vaults
) Of the hanks. .ta-.I4 t-H
In the opinion Of Mr.. Kelley thsrs are two wa VI
that lead to FVaumVtion. One Is to walt until on
exports Shall steadily increase over oar Imports
and tOVeignoFs In payment OF their balances shall
send our bonds hack. The other process Is to leav
the transfer Of tbs bonda % our own people b,
. making money Cheap, and reducing the rate o
!, interest. To accomplish this he proposes TO 81
|, modify the banking Law as 10 make the paymsn
on receipt OF interest BY the hanks Gauss lDr
II teltuEs OF their GharaStsu- He would Prolaei
under serious penalties the csEtifying by Natid1i
;. banks Of any check which dad not represent a
actual depOalt in the vanlts OF the bank. II
= Woald rslievO the banks from maintaining rt
serve 70 secure eitheT ciF0nlatl0n their deposits
is because THE b ut best but delusion aud snaHs
~ for iRdneea paople 70 believe that their d.
TO pOses are secure they are not. Another PFojeG
2. Of judge AaAsaE is y provide ~ the laeus
A. bonds PAyable, 4Rtetsob and PPincipa in laWI'
V814oy - - 14eo o. one cent cay 4oG Alasohea
~ eoqdA9o be colVeEeeA heq GFsenbacks o
demand. Tue JudgSis of opihion shat all u
|, unemployed capital which now goes into spee'
" " lation W0uld be invested in these bonds. Any bi
~ authorizing the iAAue OF such bonds should eu
poWUr the Secretary ot the Treasury 70 invest u
eF iunda thns obtained ~ closely "a ptudenes wou
i. Pezmit IN ths pnFohasB OF the 500 Rold-heariI
bonds, and require hin 10 hold any H0plas Of 90
that might asofu0 iSS the o1pFess purpose Of cal
Ing In overdue gold-beaFing 6Oads. In tAia va
n the Judge minka, tAs 1meFlcAn psopls Wou
ayt DOh. .haAOms lae the h6Idsm OF Dur debt, al
We would thea Be On the highway TO fesNmptio