The New York herald., 1873-12-23
FINANCIAL and COMMERCIAL
The Question Of Specie
Payment.
CAN WE RESUME I?
Decline in Stocks and Compare
lively Featureless Day.
,RUMORS OF FAILURE.
MONEY AND GOLD EASIER.
MONEY AND GOLD EASIER.
Railroad and Government
Bonds Generally Firm.
WALL STREET.

WALL STREET,
MONDAY. Dec 22-6 p M.
The subject of specie payments, which so dis
turbs the congregated wisdom at Washington,
would appear less irightfu to the excited imagn-
ations OF our lawmakers II they would bring TO
bear upon the question more common sense and
less OF the science OF modern finance. 1t is ques-
ton whether II the United States Treasury had
been permitted to run ITSELF instead OF having
been made TO play its part in Wall street-now aid
ing the "bears' in gold and now the ''bullsn In
et0cks-and had exhibited more OF the "mind your
own business styer and less Of the ''paternal''-
whether it would not before this have resumed the
payment OF gold instead OF the small silver change
Yet what q spectacle Is presented for the admlra-
ton OF the world. The United States Treasury. at
end OF its palace. printing and forcing upon Its
creditors at the rate OF million per day uncon
vertible dollars. and at the other end paying out
ten cent pieces OF silver Another curious display
is that OF
AN OFFENDED UNITED STATES SENATE.
who only one year ago declared that an issue Of
legal tenders In excess or the $685. 0000 such as
had been made In the October preceding, was
illegal, and that no further legislation was neces
sary TO prevent its repetition. Now, however, we
see them sit, almost within hearing or the rattle
or the "press." and watch with unconcern the in
expects or wishes the government to resume until
1t is fully prepared to do so and 1t IS probably not
within the wisdom OF man now to name day
when such an event will occur; but lfthe Secretary
of the Treasury and Congress are never to stop
applying the brakes it will take very long time
to travel very short distance.
THE ROAD TO SPECIE PAYMENTS
is as clear as the MONDAY sun. The legislation
required is more Of negative than affirmative
character
Fyrst-Stop Immediately the issue OF what the
Secretary calls shis'' reserve, and provide by q
loan for the retiring and canceling, OF the amount
already issued and for the purpose OF meeting the
Second-Cut down the expenditures to the lowest
pure over now against ain only !sse
under Lincoln, in the year ending July l. 1884 Has
the country made any such proportionate prog
Tnird-WIthdraw from the Secretary all power
over the surplus funds in the Treasury and make
no possibility OF two constructions. II no other
way oan be found to control the administration of
OF OF single dollar Of I the i,- gold " belonging longing
to the government, except as provided by law
G ee Of Senas for the the
Sinking Fund, provided for by act OF February 25
3Se2.s e. lone per cent or the entire debt q the
for such expenditures abroad as are OF necessity
payable in gold. Then by act pledge all gold re-
60 che payments Of s'the promises to pay on de-
mand"-i g., legal tenders.
This done, Congress viii have taken
THE FIRST STEP
towards redeeming the pledges of public faith
made in nearly all the nnancial acts from that of
February Is. 1862. providing for the first issue Of
legal tenders, down to the act OF March Is. 1869,
wherein it was provided "that none OF the
interest bearing Obligations not already due
shall be redeemed before maturity, unless
at time when United States notes shall be con-
veruble into coin at the option OF the holder, &cn
How well this pledge has been keptl The question
naturally suggests itself. Are the members Of the
administration superior to the law OF the lands
The answer Is at this moment sounding from one
end OF the country 70 the other. II we are ever to
reach specie payments there are but two direct
roads to the point All others may go around, but
they have finally to centre on one or the other Of
these before they reach the goal. One Of these is
by contraction and the final withdrawal OF all the
legal tenders out OF the surplus funds OF the Trea
sury; the other is by boarding gold until
WE ARE READY TO RESUME.
The nrst would cause unnecessary distress, for the
reason that there is nothing to supply the void
made BY the withdrawal OF legal tenders The
second would leave the legal tenders as they are
until such time as the government may accumulate
gold at least equal to so per cent OF all its demand
obligations, when it could safely resume and carry
Inc DankB Win H. Tnen IL snOuld lmmedlately
commence the withdrawal OF legal tenders at the
rate Of 60O0 600 or $1,000 900 per month The gold
which has been boarded in the Treasury should
come out in their place. Thus the volume OF cur
rency or, rather of f"money," a1oat would scarcely
be changed by the transition. 1t Is objected that
the government could not obtain such an
amount OF coin, and that, II it did not sell
from its surplus, the merchants could not obtain
com with which to pay duties, &C.. the answer
may be given that il the importer can import and
sell his merchandise at profit he will always find
the ways and means to obtain the necessary gold
Even If this policy should cause any
MATERIAL DECREASE IN OUR IMPORTS
for tlme 1t would soon correct itself by throwing
the balance OF trade in our favor, and thus compe
us to be importers OF gold. There is nothing more
true than that gold will now where 1t is most
valued. II Is argued that the spectators would be
able to control the market If they did not fear
sales from the government but it appears
as II they had never held the government
in much fear, and have generally managed
to control the market eight months out OF
the year. MOI These gentlemen are not much
disposed to operate against certainty however
remote IL may be. They prefer uncertainties, and
the probabilities are that they would virtually re-
sumo, 80 far as the premium is concerned long be-
fore IL would be safe lor the government to do So
However, the plan has been well tried by the gov
crnment OF forcing cheap gold; the result is that
THE COUNTRY HAS STEADILY LOST GOLD.
Now. let high gold be tried, II the spectators
choose to make IT so, and let us see whether 1t will
not bring gold home. 1t is not o rash prediction
that there are many foreigners who would send