, 1873-02-12

makes the gold price Of tho bonds 08.03 includ- |
Ing acorued intorcst since tho frHt IT tho month.
The bonds havo therefore declined 2 por cont 10
gold within the lnot two weeks, aud 1t ia appar-
their $500 o06 Of bonds, they can not do It at
psiees again, tho sohomo viii 10 4 failure,
TIE STOCK or BrEC1E.
Careful estimates OF tho coin circulation Of
tho Pacific Coast placo it at notover s15, 900, 900:
Add - 900 as tho largest possible amount
held by tho National Banks over the amount OF
thcir gold certificates, and Se2, 81, ,o04, which
The total amonnt q specie IN tho United
gregate OF @9l 200 900 ua the total stock of coin
In the United States a1ld Territories. These fig.
urea show that Senator shorman'a essinato Of
$500 COO 600 OF coin In the country, available for
spacie resumption, is perfectly naaurd.
1ovEnNatENT CURRENCY VERSUS nANK NOTES, >,
can seldom differ with TnE OllIoAoo Tribune On
question Of what ought to be dono for curron.
o.. Tho Telegraph objopta to tho ,rotiromont OF
tho greenbaoks and tho increase Of the National
Bank notes as means Of specie resumption.
oy have but ono argument in it's bohalf. This is
tho plausible but not wcll-foundod ono that It
would cost tho Government about S10 ,ouu, oo9
per annnm less If the present National Bank
evor, that tic National Banks, with an ag.
g1egate capital Of GATE, ,0o0. 900, .pay State and
donoral Government taxes to tho amount Of
S16, GOO, COO por annun1. It iB d vol known fact
erty, escapes Its due share Of State and other
local taxation, except In caaes whore thorough
exhibit OF It Is compelled ss in the caHe OF capt.
tai tn National Banks, and It may safely be as
wsTe apoiished, tho he si7s, 900 900 d bank eaptai
would not pay taxes Of all kinda to o greater
amount than 81, 900 or IS 900 900, thuS Bhow-
Ing loss Of from s12, 100000 T. s14 600 Of
,ss tasss now collected by the General Govern,
ah 'ss e. T ta.os s@fa paa p g'af ts 5an
tha1a ia any considerable balance in favor Of an
s5elaslyo grsenbae3k currency it must be remem, m
whole country the soundcst syatem OF banking
In tho world. The small-for 1t ia amall-pro0t
totho banks on their circulation is tho main in
dueement to bank capital to subject itaoN to the
margin Of about 20 per cent in tile marriott raluo
Of the bonds deposited by tho National Banks is
practically security for dopositors in addition
to ths T. continued AZ; pnblcty given to tls condition
thepeople at large thnn the difference betwoon
tho taxes paid by the banks aud tho bonds hold
by Aona-,.
But besides those arguments in behalf Of =
Sstional Bank currency, thoro is moro forciblo
one against an exclusive currency Of .greenbackH.
Paper money culronoyis something that must OK
pAnd and contract several times q yaarin accord
Ancewith the activity oftradc. Adovernmentou cur
reuoy can not bo mado to do this In q legitimate
way, because the Government Is not = bank and
ought not to lend its credit to merchants md
tradora as bank can and ought to do. Tho only
wsy the Government gets It's monoy out OF tho
ss fa adseesS sy Sua n 1a easassS sa a1aon ts
pend IN tho purchase Of bonds. Tho
present. rneana Of getting greonbaolIB into
circulation is therefore only an incident OF tho
r1np mi II I'm ff1n ri
which iB tho retiromont Of oil Government ob]i-
cations. The much-talked-ot elasticity Of tho
currency cannot be obtained for Government
currency without tho annual collection Of neary
current expenses Of the Government.
There is, however, a still moro important OBJ
1ootion to an exclusive Government currency I:
WE mgS a e os sPsss se oo s s H.
banks Gun maintain public confidence in their
notee In the aggregate, with a much
smaller aggregate specie reserve than
II cir oSsS p9ssen 1ee sSna + Fl ssSSSss &
paper money were greenbacks, and tho Goyorn-
ment were to attempt resumption, it would ro-
qutre constant reserve OF at least SS00 0o0, JUG
of specie in tho Treasury vaults to maintain con
76dence in specie redomptions Of groenbacks,
while the banks could more likely maintain
confidence in IN equal amount Of notaa with an
pctual reserve Of 20 per cent say $3.50 900 900.
The ground for this belief is the fact that IN the
is in one place, md lta amount known to every
body, 80 that every douhtor could measure from
day to day, the increasing or decreasing ability of
the Government to pay I'LL it's notes on Clon>and.
The reserve would be SO concentrated that any
loss Of confidence, or any wcl-planne1 scheme
OF the gigantic spoeulntors Of the present day.
would tell with double force against tho whole
volume OF currency,
But II tho 800, 600 wore nll bank notes
the stock Of specie could he shifted around from
place to place, to help austain different banks
A dozen banks might fail, and yet confidence moi
be shaken in the general sonn1mess OF tho cur
mont might not be abEo to Ilay ono Of itB notoi
would precipitate . panic ut onco.
I ia a rot probable that as great an amount a
in this country concurrent with specie rcdomp
tions Of the anmo on .doinand: Specie .redenl'
tions, il maintained, would certainly brinl
sloo ooo, ,o9o to sl6o, ,oo9; goo Of gold and silvo
would reprcsont ef7s7, soc, ,o050 Of purchasing
power, add to this the $3.50, 0,O00,000 OF coin thu
sss7,o6o,ooo or Of ci1cuiatng nediunl, Which IRON IRON
our present experience would corta1nly be $500,
100000 or $500, 100000 more than wi
have any legitimate use for. 1t is up
parent thorsi9re th % t9at with % specie Re r.
contract In accordance with laws Of poltlca
economy, which superficial thinkers like Soma
tor Sherman seem TO ignore entirely.
Contraction Of either the grconbao1ts or TIL
National Bank circulation will DO tho ccrtall
result OF apecIe rosumption md for the reason
given above, We cannot avoid tho conclusion
that 1t would botter be the greonbacka, and tha
the contraction should begin bBforo the attcmp
to resume.
Tho monopoly of National Bank clrcu|atio
ehould bo removed, because 1t Ia monopoly
No one need he afraid shat tho hanka will xis
the loss Of the 20 per cent margin In their bond
by putting out more circulation than they ca
take care of on 4 basis OF Bpooie relomptionH
par. ..... -.
LOCAL sToCK AND BOND MAnKET.
Messrs. Lunt, Preston i Kean quote AZ follow
this Afternoon:
1uyfnq. Ssiti,,
6-2gB Of Ca, .11b 116
b-2os of Observation-Disclosures. l15
6-4Oa Of U5, 5,,,..,....,,,...,,,,,115 liz
6-2os Of S6, Jan. aud July.........ll4 III
6-2Os Of B7, Jan, and July ..11BA 1ld
6-40s Of N8, Jau. md July, ....... .1161f 110