New-York tribune., 1873-01-17

known TO all intelligent men, snd the oheer ncrsons i will
nayment is greatly exaggerated as To tne % ,%a
nnre onr business not only debtors, ehs % I,s @
are q they are injured e Sy the Increased
vine ~ ~ their credits No engaged IN product'oh
merely, whether as nnApOer iOerod or for # the nom
mai value OF his production Is alnishoo' INN us Ine
cost rp6aastOn Of yiRG 'Gs diminished IN the
gree Experience has shown that depfeclatco money Is
Standard of value the effect OF which is not noticed 10y
laborng man, or by trader OF meIcnnl' iNen upoh
Mil surely he appreciable the nominal loss will be
discounted in advance or oe dVioeu ourns 'ne sau'
rHE TAII4AcY OUR OBJECTIONS.
The greater burden will fall upon debts running for
long period Of time, upon corporation bonds and
mortgages As TO those in existence before the Legal
Tender act took effect, 1t is but right theybe paid in
specie while those contracted since have been issued IN
the expectancy of specie payments before this time
sn while the effect OF specie standard upon debt is
greatly exaggerated IT cannot be denied that II is
followed by contraction OF thei currency II Will cause
distress and embarrassment 10 very many who have
contracted debt on a currency basis But ths ar
gument OF hardship Will apply for ever III we are CON
troled by II we can never pay our pensioners the ase
Of time Will not make II easier Our financial condtpn
much stronger that afford to do right
and yet in such as 20 lnure III the least possloe
degree those whotcontraeted debts on currency
Again the effect of specie standard In producing con
traction OF the currency Is greatly eAaggeIath,cu
esgt az snoc,e ~ nsy@ents Jndonbedy con
traction OF the currency would produce specie payments
naner r money IN cTsuIson is in excess of the wants OF
the community II Is the only road We in 1866 and 1861
2eS C o ~ GeS o one compoSpd interest and other
rates. most OF which part OF the currency H. ia
United states notes to be used for per cent bonds at
par, would have long since been az specie
for the payment of current expenses ana tne
notes and notes applied to the purchase of bonds In
this way could have reached specie standard tne
moment our per cent bonds were worth par III golu
The advancing credit of the nation would have lifted
our currency par in gold precisely as II lifted al forms
bonds par when par In gold ana now Wneh our
credit generally impaired by the rapid payment ot the
debt induced by the advanced value OF our NOTES ~
gold, raise their value TO the specie stsn1ru
| much more readily than four years ago. Our fallacy
lies foundation of the objections 20 specie stshd
/ ard. that 10 necessarily cOmpes a withdrawal OF
| paper currency. This depends entirely upon the
amount necessary to conduct the business Oh tue eo
redemption. Mr. knox, the Controller Of the currency
in his last annual report shows n IN tSn ere
circulation of coin and paper was S44s6lS or ratl9
Thai the circulation in the United 1870 including
United States notes. bank notes. fractional currency anu
specie was s7sOOOO0OO per OF wealth The
circulation in the United States capita is now less
than in France and greater than IN Great Btaln pu.
greater than either proportion to the wealth Wneh
we consider the vast extent OF our country lk rapd
growth, the value of productions, and the general
use of paper money IL is not unreasonable TO suppose
that ali OF it now outstanding he maintained IN cir
| culatOn Oh specie standard
| HOW PUBLIC CONFIDENCE MAY BE SECURED.
II must be remembered that the total amount OF Uni
ted States notes is S56OOOOOO that very large sums
must be retained byTthe banks their reserye that
large gold reserves held in the Treasury that
the notes are widely Circulated have the confidence OF
the people, and can be supported by the public credit
any considerable viii be presented for redemption
If presented, they can again pe pam ont i IN tie
course of the public disbursements specie payments
can thus be resumed without contraction OF the cur
rency and with only the change OF nominal values Tor
the real standard of value the world over The chief
requisite that the public nave assured confidence IN
ability 10 maintain resumption rms is mdlspensac
bic and II exists actual redemption by payment OF
is comparatively rare. Ihls commence OF creut
be given by either of three expedents FIRST the
maintenance the Treasury OF large reserve in com;
second, the authority IN the secretary Oh the ileas
/ ury TO sell bonds for com TO maintain
redemption third authorize ultimate redemption
either coin bonds The first is subject to the obee
pane when il will insufficient. The second is sub
ect to greater objection that the power could only
be used in stringent money market, 1t viii lead 10
great sacrifices OF public securities ana ada uel 10 the
could operate only from panic unforeseen
our bonds below in coin, and, as III the Tempo
The United States aud the business community This
plan implies that the United states VIII make M l5s
that it viii be generally at par III gold do not over
look the fact that resumption by the United States will
| test the strength of the National banks and prove
whether not they entitled TO puslc confidence
| fund far beyond the difference between currency
| and coin justihes the conviction that they
| speoe redemption the system becomes free The fuc
tuatons OF their currency will be bat the healthy ebb
fact and will the tendency OF the country banks
TO employ their currency in Wallst Speeulations AS
they NAV in IN United States notes. they
wii have the benefit Of1he alternative redemption
dsd "a Ia limited States notes so that the sacrifice of
their securities generally follows specie payment
during a panic no further than the payment or
tber bonds for their notes par for par Agau specie
standard win al bring gold aud silver coin into actual
use The amount boarded has been yarl0usy estl-
mated with that deposited in the Treasury and In
| circulation in California cannot he less than
S9OOOOOOOO. This will probably take the place
of eg tenders as bank reserves and thus add to the
Dresent Volume of the currency Even II specie pay
| ments should me retirement IN coin funding
OF s5GOOO0OO Of United States notes, their place VIII
be more ed by the coin let loose from s present
banishment therefore conclude that the fears OF ey
results standard greatly exaggerated;
that there will be contraction OF the currency no
that United States and bank notes viii pass
usual in the ordinary exchanges OF e increasing the
value all property whether produced here or abroad,
e1ua 10 the real money OF the world with tant
OF dishonor or depreciation about At.
There is one incident 10 a specie standard that must
not be overlooked 1t Is the widespread injury produced
10y sudden panic when confidence is temporarily de-
in use In the United war such
a panic was ruin and bankruptcy In sneh a time
which with rredeemable and Deprecated paper money,
would only cause further depreciation until general
said that with specie payment: We had the
panics Of 81 a. S hss Mae with irredeemaSs SSs sIe
at Chicago and other eaamtes without panc-ergo
specie standard cs is S we're al I'm
cas- are "a useless hincunbrance." This reason only
Suspended, nation NAV BY this use Of paper money
alone, develop its resources and obtain high financial
two examples OF such success in both specie
payments constantly promised and kept in view,
| while the public credit maintained by collecting It's
revenue and paying its debt in coin. In Great Britain,
during her wars with Napoleon, the Bank Of England
notes were deprecated paper currency but they were
| never made legal tender, and their credit
WAS supported not only by promises, but by
attempts at resumption the United States the
of with paper money was the carefu nta'
ton of its amount the payment OF interest in coin,
the collection OF Customs duties IN coin, and the
promise of the United States 20 redeem all its notes in
coin with the confidence OF people that this would
| be done that not only the United States, but other
nations who conductea war with paper. money alone,
without an expectation OF cou redemption met with
disaster naIcia ruin. Such the experience OF
France with her assgnats and mandats; of the Ameri
can colonies with continental money and Of the South
with their Most OF