, 1873-11-22


RESUMPTION OF SPECIE PAYMENT.
There is nervous anxiety in buainesa ciroIea
as to what courHe Congross will pursue with rof-
ereuco to tho commercial depression consequent
upon tho late panic. II Congress should call
upon tho people for o yoto OF confidence, after
tho custom Of the Fronch President and Aasenl-
bly,, tho result would bo unfavorable.
II Congresa shall declare mar upon SPUN, or.
untoors (which would bo about tho aamo thipg),
there Ia an end to all legislation at once
A declaration of war wouldundoubtedly divert the
attention Of tho people from the pnnic, furnish
employment Tin tho way Of dostruction) for
Thousands rho will otherwise DO unemployed,
aud lead to frosh ihauos Of groenbacka,
and consequent imitation Of prices, and partially
restore tho llusivo appearance Of prosperity TINT
o1iated before tho failure Of Jny Cooke & Co. II
there is to DO war, no shall go on after tho old
fashion, postponine tho general settlement
fov yoars longor. II thoro is not to be war,
then tue first thing to DO recognized ID that ITO
arc in moro favorable condition for return to
a specie basis than no Aavo been at any timo
anco tho close Of tho Rebellion. Accordingly
tho first thing for Congress- to do is to declare
whother or not there shall 10 IN effort to roaumo
spccio payments. II Tho sentiment Of tho major
ity is opposed to all afforta at resumption, thon
all financial legislation will bo on falao basis,
and every change is likely to mako mattors
wozsc than they are now. II the majority favor
resumption, In somo way, then tho country will
bo prepared to naton attontively and patiently to
discussion Of tho means boat sdnptoa to that
end, conscious thnt return. to spccfe basis
will speedily compensate for possible defects In
tho plan finally adopted. ~
4 plan worthy Of consideration may be briefly
slated as follows: u Repeal the Legal.Tondor
aot Us to future (not past) contracts; l2) TO-
deem the existing groenbacks in gold-bearing
bonds at their actual ya1uo-sny o. centa On tho
dollar OF whatever nlny be tho current rate ut
tho timo OF tho ropenl; aud (s) FREQ banking.
/. Tho ropeal Of tho Logal-Tendor act
wonll gerve to bring out and utilize not only tho
boarded groonbacks, but also tho so0O, ,00o 600 Of
gold and 800 900. 600 Of silver nowin tho country
and constantly increasing in amount. All debtH
contracted prior to tho repeal, including tho Ma
tonal Bank notes, would bo payable IN legal
| tonlor. The effect OF this would bo to keep
groonbacks in circulation, except ia they should
gradually nuke way for gold and gold-notcs.
q Tho redemption Of groonbacka in class OF
bonds bearing such rate,ot interest na would
mike them worth about o2 conts~-tho presonl
value Of the groenbaok- prevent thom
from deprecating. II groonbacka arc worth o.
ut the time Of tho passage Of the act, tho bond
would probably nood to draw intorest at abou
a.o5-1o0 por cont. Tho objection to Senate
sLorman's : per cent bond achome Is. that tn
bond would be worth 80 much more than tn
greeabaok that tue latter would rush into tn
former with great velocity, md it would compo
the settlement Of all existing indebtedness o.
tho basis Of 90 cents instcad Of %. Thoro woul'
be no objection to making those bonds recon
vertiblo into groonbacks at tho pleasure Of thu
holder provided tho Logal-Tondor act were 70
pealed as to future contracts. Tho fu
turo business OF tho country would the
be done on gold basis. and tho value Of green
backs for settling paat contracts would DO do
termiuod by tho value Of tho bond in which tho
arc fundable, and this in turn would be go'
ernod by tho rate Of interest in tho open markt
on the highest form Of security. Then, iuatca
at gold being quoted ut 100, gold would alwa5
bo 100, and groopbaoka would DO quoted at 02, c
their actual value, as thoy aro now and alway
hayo boon in California.
8. Tho National Bank notos already iaauo
would follow tho valuo OF tho legal-tonaor
which they arc roloemable, and would bc +
tired, in all probability, boforo tho groonbaok'
Their place, under FREQ banking. would bo take
, by circulating notos redoomablo in gold. FRI
banking on gold baalA, aud with proper 8
curity. is altogether the best provision for
I flexible currency that cau 10 mado. Tho seourlt
, might safely remain Of tho samo character
that now provided by Law.
!, This plan contomplates tho settlement Of t
t exiatIng 1ndobtelneHs, including the 0oYor
! mont'a greenbaok iudebodnoas, on tho curron
, basla. Tho objection will, perhaps, DO rails
8 against 1t that 1t amounts to ropudiatlon Of
j, per cent Of tho greonbaok indebtedness OF Il
: GoYernmont. Tho answer 10 that tho bond In
which the grooahacks arc funded will ultimate
be paid at par, Another anBwer is that tho Go
Q ernment Ia now, and has been for more than +