The New York herald., 1873-11-17
TEE PROBLEM OF THE DAY.
shall We Have Specie Payments :


10 THE EDITOR OF THE HERALD:-
communication from Washington ap peared in
the HERALD OF recently, which, 1t appears TO me,
contains unusual significance. In short, the Comp
trOer OF the Currency is made to say, In reference
TO the action OF the national banks In ssu-
Ing certificates among themselves and "substi-
tuting certified checks in payment or their current
Indebtedness to depositors," that "such an ar
rangcment was illegal, and in direct violation OF
the National Banking act,n he further adding, ac-
cordng to your report, that "every bank that has
substituted certified checks in payment or actual
indHDgelness at its counter has incurred the
penalty affixed by the National Banking act,
and that he is not clothed with discre-
tionary power II such banks are reported TO
him." This statement is certainly important,
true, and certainly see no reason to doubt II,
since 1t is the only common view OF the posi-
.tiOn II taken from legal standpoint. But, be this
as 1t may, perhaps you will allow suggestion from
me, since suggestions are the order OF the DAY.
The United States, a nation, being now at peace
with the world, IS certainty Ia position m 70 recon q
1t not the duty OF the government TO DO soY we
all know when, and for what purpose, the National
Banking act was passed. In word, 1t was simply
to tide over most unusual and most dangerous
emergency. II served its purpose for the time,
Misunderstanding a home market for government
bonds, and, at the same time, giving uniform
currency to the entire country. The emergency
mas passed aWay-nOW let tne eXpeulent also, par
ticuiarly since the opportunity is so auspciously
offered. Europe throughout, seeks American
securities, as a permanent and safe investment.
Let them have them Now that values Of all
American securities are reduced nearly, or qultel
TO what they ought TO be In gold and the nationa,
banks have in so many instances abused the trust
reposed in them, let the government strengthen
itself and resume specie payments. And here the
al-mporuant question comes In, How can 1t be
done I 1t may be considered presumption to indi-
cate mcth0d; but since 1t Is the fashion, please
let your numerous readers consider the following,
simply as q well-meant suggestion. Ten-forty
bonds as well the new loan are still quoted
above 90 in gold, IN the leading money maTket
OF the world -s~4.sr
IrIhen let say 800 ooOoOcoo oflong bonds be placed
with syndicate OF leading houses-like the Rothchilds
Barings, &c, Of Europe-whcn oud give the Treasury
reserve Of fifty per cent on their entire greenback in
Secoad-Let the National Banking act be repealed.
9hsd-Let free banking act be simultaneously passed
but exacng reserve OF at least twenty per cent TO
be Kept on hand OF either greenbacks or gold
forh-Resume specie payments as government re-
ceivng the same gold for customs dues
FVfh-Abolish the Gold Exchange, and allow all the
currency the country aside from greenbacks and gold
to be sold at discount until replaced with the new
the banking principle-and let that law
be well hcdged about with safeguards.
a. This change would be sweeping, il is true bptt
since sn5 'rlsia has come, as 1t has, since the
United states is at peace With the world and
abundanty prosperous, and in position to hold
her own in the exchanges of the world through
the happy necessity that now exists Tor the con-
sumption OF ner immense accumulation OF agri-
cultural produce, and with q rapidly increasing
demand abroad for her extensive mineral
productions, this course, or something as simple
and easy, should be adopted forthwith, and thus
save early repetition on still more disastrous
scale OF the present difficulty. w. Ii. NJ.