New-York tribune., 1873-01-17

and probably might have led 10 temporary
"Blaok Friday" or after the Chicago fire
In such temporary suspension, some substi-
ute for specie payments rs indspensaby necessary,
unless paper currency Is 80 restricted and limited in
amount 10 be insufficient for the ruling exchanges OF
the country. All paper money must rest to some
extent Upon confidence. when panic arises
hdenco the instinct Of every holder Of blll,
or depositor in a bank. Is to convert his
money into gold. This Ueeng, II Widespread and long
continued. will break any bank however abundant s
assets. and will necessarily lead TO the eniorCement OF
tenn amply protects the noteholder bat does not IN
time OF specie payments, sufficiently protect Dhnh rom
All enforced sacrifice OF its assets 10 maintain specie
payments at time when the public good Us wen as tue
existence OF the bank, demands temporary suspension
The difficulty might arise on the par o. the United
states in maintaining specie paymen on Dsu @ oeiles
notes. the of gold in the Treasury might De ex
hausted by sudden demand; IA, var fbe or nted sates
S%sS aS: TN the fSSSa'S p1SF sf
England raise the rate OF interest Oh i's loats
and thus draw, in its assets 10 meet ahtel,
with our publie policy discretionary power IN pr
vate VERSIONS public officers over so delicate subject
as the national currency ought 10 oe atoHeu tne M
national banks already possess in me SutoW OF rhe
Government the means 10 obyiate TINS dinculty Inc
tionai causes it cannot be maintained, Is the
pnbIic credit. II the United states cannot pay
It's notes IN coin, or any hat0naai hata o,, panA can
not nav its notes in coin In United states notes,
then payment in bond Of the United states. bearing
Interest at such rates and upon such terms as ordinarily
above mar in gold would provide for redemption;
A. vond satisfy the public creditors and prevent
for time any considerable depreciation OF the notes.
anr citizens: will pay debts aud fulfill contracts, and
WI MIL hs QUO at mar in coin With authority Ia
the Secretary OF the Treasury TO redeem United states
honds now offered for sale and with like authority to
redeem bank bills protested for nonpaYment IN specie
the bonds OF the bank deposited with the Treasurer
at mar we would have specie payment, except when
bonds OF the character named are worth eSs than par
i'm specie With the advancing credit OF the United
afciv a1i
lie nj par in gold, except In such times as u would
h nr"yisoa for the redemption OF United States and
bank notes no large reserve OF gold either IN the
Treasury or in the banks VIII & pe grces which S Pr
and peope alike must suffer when compelled TO redeem
their notes or pay their debts III com MADE exceptionally
scarce by manic or war; II would reconcile many per
soma 10 specie standard who dread that an artificial or
temporary scarcity Of specie may require tnem 10 unll
their contracts with money Impossible 70 DC obtained
Banks that now fear that under panic their
bonds and securities may be sacrncea TOT Specie VIII
viii ar least pay their bills IL is in harmony with the
banking system and all our carry loan Jaws uurlhH the
war which provided for voluntary conversion OF notes
INTO hnnds do not claim that this II the only expedi
ent against panic for temporary snspenson but
do claim IL will secure MS against he Wlde spead DdhA
that in tmes past resulted froin the compulsory
suspepson OF specie payments IN the united states.
Having thus shown the 0ohgon AM anu nTris'ly i W oi
sumption may be avoided it remains 70 examine the
means best adapted 10 bring u ABOUT. aIDng @ tne IN.
Vulnerable schemes proposed there are seNea at are
practicable. First to authorize les tehIet NOTES 70 Oe
for bonds OF lilt lnlteu states
second 10 authorize them 10 DE receNaDe III the pay
ent of duties third TO authorize them TO De converted
into demand notes, bearing interest, OF mo COMPOUND
interest notes; fourth, discreet resumption OIL specie
navments on day In the future to be fixed by law
ifth graduated scale OF rates at which they will be
scribed day The xamnatOn Of these plans would lead
me more INTO detail than propose TO 20 at this time
Each OF them would advance immediately our notes
toward specie standard The second only Is subject to
the objection that would violate the puohc ath now
pledged TO maintain the Customs Bureau IN com as
specaA fund the payment OF interest on the puDlc
THE SIMPLEST AND MOST ExPEDIESr MEASURE.
careful consideration of the whole subject leads me
to the conclusion that the simplest and most expedent
measure is to declare by law aud after the 1st
day ofJanuary next the United States win redeem its
notes either with at the option OF the Secretary
OF the Treasury with It's bonds Of convenient denomna
ons bearing per cent interest IN coin This will be
recogmtlon by Inc N,rnH SIeu ,s,s mat M Mt will
at the earliest practicable period redeem ITS notes IA
coin. II viii provide also io me possible Dut Hot ptoD
able contingency that more notes Will be presented than
can conveniently be paid in coin In that event the
United States will redeem its notes III character OF
bonds now with par gold IN the money market OF the
world The objections that may be made
as to its effects upon the national banks ss
have said II is founded upon the plain equity that
in coin we will al least the public creditor who
holds the of the United states bond bearing
in OF the wants OF the people Tor currency
they will presented for redemption and ought 10 be
redeemed. II not their value wlh De appreciated
to the gold standard and this IS specie pay
Inent The notifications Of the Banking
act properly be postponed until future time; wne1
the practical effect OF specie STANDARD upon the United
States notes Will test the ability OF the Oanks TO nam
tain their at par with United states notes Whether
they should be relieved from maintaining 50 large re
serve whether there should be one center Of redem-
tion questions Of practical legislation for the future
TIE moment the notes are redeemable IN CON- tle Dank
ing system be limited IN number and disribu
tion Of banks and will stand like all other business pr
suits, open 10 all who VIII give the requisite security ior
their notes aud will obey the general law.
In submitting these remarks at this time feel like
apologzng passing by arguments worthy OF cOnsd
Grafton but my only purpose now was TO present with
the substitute reported by the Committee OF Finance
the leading measure favor OF IL. My hope s ana IL rs
reasonable one, that neither Senator'S the public
viii cOntne their arguments 10 crna objections, put
will suggest some plan better suited to
honestly supporting this pla VIII readily adopt any
United states 20 pay one dollar equal 10 the best gold
dollar Of the mint
THE FINANCE COMMITTEES SUBSTITUTE.
Mr. sherman then reported, from the Committee on
Finance, the following substitute for the Buckingham
bill:
enae,d h. Let day of January s The seers,.
Q, the ss'9 and ';99d e. % S E On demand % At S s
Of United states the Of 900 multiple thereof
exchange for such notes. eqa. smount Of ae gold Of the
sd notes equal amount OF coupon OF registered bonds
Of the United stats ~ 80 s such .d, ,O %ns Of s a 5 Rs
in present standard value the pleasure Of the United
payable quarterly the o per per
snd OF the Treasury the
United states received. Il they cancelled
issue United States notes 10 the same anonht either
redeem the public debt meet the
public the sad bonds and The interest thereon shall he
from the all 6res d6es OF the United States
we'll from in other form b under State municipal
local authority and the sad bonds shall h'e SET a ana expressed
face specified conditions sud Shall with the
made payable hs Treasury Of the United States
That from after ,be 6rst day Of JJ limit
aggregate circulation Of national banks prescribed by law
psed all banks hereafter organized shall deposit
their bonds Of the United States issued under
the entitled authorize the efundng
tions debit approved july IL. 1870
That all the baukine associations which shall and
July 1876 redeem their circulating such localities now
be hereafter designated by law either In coin In United
iegstendeT notes snail be exempt from the
eIstiug law 20 holding a reserve Of lawful money
Of United Safes ProUd That nothing herein contained shall
National God Bank established
provide for the redemption Of three
t6catss for Of National Bank approved July "
redeem their circulating anything but gold Of the
United states
That section Of act entitled An Act TO provide the
redemption three oercs,es r the
increase Of nations, bsni approved July 1870 BE- here
by repealed. 'S<&