, 1873-10-13
will pay tho ouch tax,-they will submit to II
such Imposition.



SPECIE PAYMENTS.
Washington dispatches statc TINT President
Grant would like to nay something in his FORTH
coming n,osango In favor Of n resumption Of
specie payments, but TINT he Is restrained by
celebrated apotllogm Of Mr. Doutwolla on the
subject Of "growing up to apoce payments"
Tho tontoncy Of thiugs just now ia to grow
do,on to spocio payments. But for tho fact TINT
tho Govornmons Is issuing now greenbaoks ont
Of wlat is called by courtesy |" tho s44,ooo.ooo
rescrvo," wo should bo growing down to arccio
payments muoh fastor thnn we arc.
It Ia not to bo expected that tho President will
havo any cloar idoas OF Lis own on this vastly
important subject, but II he will coaso leaning
on Boutwell,, Jay Cooke, Horny oloTa, and tho
other suspendera Of political economy, ho may
deriye aomo from external sourcos. The coun-
try is getting in worry good position to resume
Bpocio payments. GroonbaoAB aro now ut par
with silver coin, and, II they remain 80 for any
considerable time, silver will pass into oircula-
tion. and thereby add some Sso,00o,oo0 to the
available currency Of tho country. It
ia to DO hopod that this result may
como about-if for no other roason, In or"
dor to silence those who arc always asking
where Ia tho epecio to come from 2" Tho
eatimatcd amount Of gold and silver coin IN tho
world ia about $10,0o0.00 600. It ia also
"ostimated that any nation can have as much
Of this coin as 1t can pay for. II Ia lkowiso be-
loved that II tho Legal Tondor act were repealed,
except as to pnat contracts aud obligations, tho
existing stock Of gold in the country would bo
sufficient to 1naintain apecio payments upon.
The larger transactions Of commerce require no
gold except to settlo balances, since tho OK
changes offset each other. The whoat pays for tho
cloth, and uice ue'sa. As to small ttanBaotions,
tho pooplo are so accustomed to bank notes TINT
thoy would probably prefer them for pocket
money IL assured TINT they wore convertible
into gold: Hence there would bo very little
gold wanted--as little in proportion aa in Can
ada, where specie bass ia successfully main
taincd on very small reserve Of coin. Ono
groat advantage Of specie payments would DO
tho resulting elasticity Of tho currency. At
present our currency Ia certain fixed
quantity, no more and no leBs-whoroby It
happens that whom the tine comea for moving
the crops, and largo amounts Of currency arc
wanted, thero ia o sudden construction at all
tho money conlroa. II VIC could draw upon tho
money Of tho suorld at such timeH, Of which there
Is practically an inexhauatiblo supply, no Buch
construction could occur, for we should as onco
obtain all that our products could pay for, and
that would DO precisely the amount wantod.
The Presidents latost preferoncos (which
have not, however, taken tho form Of rocom-
mendations) aro stated as follows:
!. Authority to reissue tho S44,ooo,ooo re-
aerve.
2. A FREQ banking law,
8. Repeal Of the clauso requiring reserve for
tho protection OF depositora, q percentage Of tho
other rosogvo to 10 in gold, and Increased in
reg,alar ratio until tho whole roaerve is gold..
4. Prohibition cf interest on deposits.
g. Establishment Of poat-ofco bank, pay
mont of per cont to derositors, and conversion
of deposits either into outstanding United statea
bonds or now ~ per cent bonds, rotiring an
equal number Of those outstanding.
As regards tho first, 1t appears that the
"44i 900, 900 reservo" Ia now in process Of re.
issue, about ss.Oo0,0o0 having alrendy gone
| forth. If there ia now no authority for Issuing
them, it follows Tint tho law has boon violated
It mny be added TINT the issue Of more groeu'
backs ie not In the direction Of specie rosump'
tion, but the reyorse. Tho second, third, and
fourth propositions arc, In our view, unobjec'
tionable, and tho fifth ineomprelensible. The
object OF depositors in putting their money into
a bank, whether they receive interest or not, il
to get it out again when they want it. TO CON
vert the deposits into bonds is to take porma
nent possession OF tho depositors' money unleBE
reconversion Of the bonds into currency Ia al
lowed. The latter measure would give olasticit,
| to tho currency, but would be needless for tha
purpose If specie payments we're restored.