, 1873-01-19
SPECIE RESUMPTION.
Opinions OF Leading Bankers and
Merchants OF New YORK on S1eF.
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Special D<<patch to The Chicago Tribune
New YoRK, Jan. Ex-senator Sherman's prop
osition to redeem United States notes after the
first day Of next year, either in coin or per cent
bonds; to remove the limit from the National
Bank circulation after July, 1873, and to repeal
the requirement as to the reserves from banks
redeening their notes in coin or legal-tender
after January, 1874, are subject OF widespread
interest and discussion among merchants and
bankers Of this city.
Henry Clevs does not think that United States
notes are likely to be presented IN guanslsaes a
larger than can be redeemed in coin. The notes
not be spared to bo forwarded to New
York for redemption, nor would there be any
motive for the noteholders attempting to con-
vert them into gold SO long as tho one had the
enuae value Is the other. Tho ouly conceivable
danger Of rush OF notes upon the Treasury
would arise from speculative combinations. ar.
; Claws says any such combination would excite
great public odium, and be fought BY the banks.
The rate at which the Treasury could pay tho
notes would fall below tho amount OF its
current gold receipts from custom duties, and no
impression would be produced upon the stock OF
cofd in tho Treasury. Besides, the Government,
under this bill, would have sho option OF meet
ing those factlous demands b offers Of Per
stead OF coin, which would defeat the speculaa:-
tors. Mr. Clews thinks the National Banks will
approve Shermans plan. since it will make their
circulation worth its face in gold; In addition
NO had before the war, We should have $3.50, :
COO 600 OF representatives. OF specie, being legal
tender, and serving as e basis for banking just
the same az specie. The mercantile &C immunity
y.ry generally desire stable currency, md the
bill would undoubtedly produce steaaler con-
dition OF the money market.
sir. Duncan, Of the banking house OF Duncan,
Sherman & Co.. said he was inclined to agreo
with Senator Sheman's views On the banking
system proposed. Ho believed that thore would
be- necessity for establishing points for re-
demption at Esw York, New Orleans, San Fran
He was Of the impression that the National
Banks would not look with favor on the system
It was time, he said, that stops Ehould be taken
| to resume specie payments, because tho longer
| no continue az We hare been, the more d1aaculs
| will it bo to rcsuma. An Immediate resumption,
however, is not desirable OF dealred by the DUEL
ness peoplo generally. The impression seems
to ba that it wotld tend to a too sudden roduc,
| ton Of prices. Vita the present amount OF gold
| in the Treasury, ho was of the opinion thet 1t
would bo utterly futile to attompt resumption
! Of specie payments. Besides, II ,a may prove
an Opportunity to draw OF the gold of this coun-
try. This, however, would be prevented by
establishing in their minds u confidence IN onr
resources. He Was inclined to consider with
| faYor the banking system proposed as astep
| toward the resumption OF specie payments.
Mr, Il. 3. Cla1in, the dry goods merchant,
| thinks tie Government would not be prepared
to meet the demand that would be m.de on II for
coin. and would be likely to lose considerably BY
the effort. The people Of the South and West
we're not at all prepared for such measure
They would laugh at the idea. In fact then
ereat objection to it Was the belief which they
entertain, that it would cause great reduction
in prices. alr. Claain was not quite. decided
| himself as to this matter.
Ar. s. B. Chittendan, importer OF dry goods
| highly approved the provisions Of Sherman'
bill. as regards the circulation and reseTEes
the National Banks. Concerning the resunp
ton, two objections occurred to him: One "as
that to make it optional with ths Secretary o
the Treasury to redeom notes in coin or bondi
was to give too much power to one man. Ib
aecond objection was, that the period OF 1esump
ton was placed too near. The people "onls
have no faith in resumption taking place will
90 little time to prepare for it. Mr. Sherman
. however, probably intended tho date as 3eeler
or perhaps he placed it 60 near to have some
thing to concede to his opponents: -.
| The Tribune approves Sherman's proposltlon
and sees in it determination OF President Gran
and his adyieors to get back to specie payment
during his second term.
The Herald considers Sharman's whole scaem
crude, complicated, and imprnctlcablo. -