The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-01-17

Notes could then have Deen palu Ou
again for the payment Of current eX
peuses and the purchase Of bonds precise
| " as now. When gold Is sold for note!
and notes applied to the purchase Of bond
10 this way, we could have reached
specie standard the moment our five pc
cent bonds were worth par In gold. Tn
advancing credit oithe nation would hay
lifted our currency 10 par in gold precisel.
as It lifted all forms Of bonds to par, o
when par In gold. And now, when ou
credit Is generally impaired by the rapit
pGyment Of our debt, as induced BY thl
advanced value Of cur notes In gold, VI
can raise their value to specie standard
much more readily than four years ago
Our policy lies at the foundation Of tht
objections to a specie standsrd-that l
will necessarily compel the Withdrawal
OF the paper currency. This depends en-
tirely upon the amount necessary to con
duct the business Of the country and tht
degree OF public confidence IN redemp-
tion.
Mr. Knox, Comptroller OF the Cur
reucy, in his last annual report, shows
that in January, 1869, when specie pay
ments were suspended, the aggregate cir
culation Of cOir and paper was $44S, GIL
l2l9, or q ratio Of 27l per cent OF the
wealth Of the United States, and that the
circulation in the United States In 1870,
including United States bank notes, irac.
tIonal currency and specie, was $780,.
900 900, or 202 per cent Of our wealth.
The circulation in the United States per
capita is now less than In France and
greater than in Great Britain-but greater
than either In proportion to their wealth.
When we consider the vast extent OF our
country, its rapid growth, value OF pro-
ductions and general use OF paper money,
II Is not unreasonable to suppose
that all OF 1t now outstanding can
be maintained In circulation on q specie
standard. 1t must be remembered that
the total amount In the United States Is
$3.50 100000, that very large sums must
be retained by the banks as their reserve,
that large gold reserves are now held In
the Treasury, that the notes are widely
circulated, have the confidence OF the
people, and can be supported by the pub
| lie credit. Under these circumstances It
is scarcely probable that any considerable
sum will be presented for redemption. II
presented they can again be paid out in the
course OF the public disbursements. Specie
payments can thus be resumed without
contraction OF the currency aud with
only change of nominal values Tor the
real standard ot value the world over.
The chief requisite Is that the public
should have assured confidence in our
ability to maintain resumption. This is
Indispensable, and when It exists the
actual redemption by payment Of coin Is
comparatively rare. This condition OF
credit can be given by either oi the three
ezpedients: Frat, the maintenance in the
treasury of a largo reserve in coin;
second, authority in the Secretary OF the
Treasury to sell bonds for coin 10 main
tain redemption; third, to authorize an
ultimate redemption either In coin or
bonds. The frs! Is subject to the oblec.
ton tha. 1t keeps Idle a vast sum only
needed in case Of pauic, when 1t will be
insufficient
Tho second is subject to greater objec.
ton: That as the power could only be
used in q stringent money market 1t will
lead 10 great sacrifices OF public securi'
ties, and add fuel 10 the existing panic.
The third mode requires no reserve, and
implies that the United States will make
its financial redemption on a bond 80 in
trinsically valuable that 1t will be general
| " at par with gold. l don't overlook the
TACT that resumption by the United States
will test tho strength OF the national
banks and provo whether or not they are
entitled to public confidence, but this
present connection with an aggregate
surplus fund TAR beyond the dit.
ference between currency and coin
IustifeS the conviction that they will
meet the public expectations with the
specie redemption. The system becomes
tree, The fluctuations OF the currency
will be but the healthy Cbb and flow OF
commerce. Redemption then will become
a fact and will check the tendency Of coun-
try banks 10 employ their currency In
Wall street specuIatiOns. AS they may
redeem in coin or in United States notes,
they will have the alternative redemp'
tson provided US to United States notes,
SO that the sacrifice OF their securities that
generally follows specie payment dur.
ing a panic, can go no further than
the payment Of their bonds for
their notes par for par against
specie, The standard will bring
gold and silver coin into actual use. The
amount now boarded has been varlOusly
estimated and with that deposited In the
Treasury and In circulation in California
cannot be less than 5000 100000. This
will probably take the plaza Of legal ten
ders as bank reserves and thus add 10 the
present volume Of currency, Even II
sDecie payments should cause retrench-
ment in coin the funding Of fifty millions
OF U. s. notes their place will be more
than filled by the coin lot loose from It's
present bGulshment therefore conclude
mat, fears Ofevl results from specie stand.
ard are greatly exaggerated. That there will
DO no contraction OF the currency, mo- dis
turbauCe OF tho real values or suspension
OF business, but all our present United
States bank notes will pass as usual in
the ordinary exchanges Of life, increasing
the value Of all property whether pro.
duced here or abroad, equal 10 the real
money Of the world, and with 40 taint oi
dishoaor or depreciation about it, Mr..
Sherman continued at length, showing
the obligations and necessity of specie
paymcnis, and how the anticipated evils
OF resumption could be avoided, aud said
the innumerable schemes proposed fol
resumption several were practicable, but
a careful consideration oil the whole sub
Iect led him TO the conclusion that the
simplest and most expedlent measure Is
| 10 declare by law that on aud after the
lst day Of January next the U. s. will re-
deem its notes either with coin, or at the
opljon Of the Secretary Of the Treasury
with its bonds OF convenient denominu'