The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-29

, Our National Fina ncial Poiicy--schemes
OF Resumption.
The currency debate was continued yester-
day in the Senate, and Mr. Bayard. of Della
ware. spoke forcibly in favor of gradual con-
traction and resumption, but without develop
ing any new feature Every person admits
that at some future day the country must ex-
change its present irredeemable currency for
currency redeemable in gold, and very few
deny that the sooner this is accomplished the
better. Even the boldest infationist contends
that his proposition to fill everybody's pockets
with paper money is designed TO enable us to
glide easily into specie payments The point
to be reached is professedly the same with all.
but the roads by which it is proposed to travel
run in such opposite directions that some must
go astray Outside of wild theories and selfish
propositions there are certain landmarks which,
if kept in view. will lead US to tho desired
goal. We must Tighten the public burden as
much as possible by decreasing the rate OF
interest on our national indebtedness. by dis
continuing the policy of forcing rapid pay
ment of the debt and by stricter honesty and
economy in the government We must guard
| against the reckless speculation, OVERHEAD
ing and violent fluctuations in values
which brought about the recent COM
mercial crisis. We must bring our greenbaok
dollar as near as possible up to the value Of a
| gold dollar. If we accomplish all this We
shall place the business of the country on q
solid foundation and secure natural return
| to specie basis. The question is, Which
| is the shortest and safest road to these
| results9
| Some legislation is needed to relieve the
country from its financial embarrassments
and to restore the commercial confidence, so
badly shaken by the recent troubles The
necessity implies that there has been some
thing wrong in our past policy. for the crisis
came upon w while the country was prosper
GUS, the crops abundant and our national
credit good and the crisis speedily produced
panic The commercial world could not
have been thus rudely shocked by the burst
ing of few bubbles and the failure of
handful of speculative bankers if our financial
policy had been sound and our cur
rency on firm basis. Yet some persons
propose to remedy the evils from which
we are anxious to escape by continu-
ing our old policy in an aggravated
form; by increasing the volume Of currency
so as to give new encouragement to specula-
ton and drive us of further and further from
resumption These infationists receive Sc
we're blow from the strong protest Of all the
great capitalists of New York against their
ubo
all our troubles to our irredeemable promises
to pay are eager to jump at once to specie pay
ments whether we have the specie to pay with
| or not Against these the common sense of
| the people stands arrayed Probably the
wisest course, so far as the currency question
is concerned, lies between the two extremes, in
policy that viii prevent imitation and provide
some means for a gradual return to specie
basis Two plans have been proposed which
appear to merit consideration. The one con-
templates the issue by the government of four
hundred millions of gold bonds, bearing four
per cent interest and redeemable in coin in
fifty years, to be used for banking purposes.
| As these bonds are issued corresponding
amount of greenbacks is to be withdrawn and
hundred thousand dollars may deposit gold
bonds as q security for circulation and
receive in its own notes ninety per
cent of the amount deposited The
currency of these free banks would
take the place of greenbacks until the whole
of the latter became absorbed. This would
| give us coin for the redemption of the circula-
ton in fifty years; but it would exchange
four hundred millions of greenback indebted
ness, bearing no interest, for the same amount
of gold bonds bearing four per cent interest in
coin Itwould also leave us without any legal
tender except coin. The other proposition is
said to originate at Washington. 1t contem-
plates the issue on the first of each month,
commencing in July next, Of two million dol
lars in United States notes, in denominations
Of ten dollars and upwards, without interest
but redeemable in coin in two years; the said
notes to be sold for greenbacks, and the latter
to be cancelled and not reissued. BY this
plan we should commence in July, 1876, to
redeem our currency in gold at the rate Of tive
million dollars q month, and this would con-
tinue until all our Treasury notes were re-
deemed or placed on gold basis
No measure of financial relief will be effect
ual that does not extend further than the
reformation of our currency. We must no
longer force rapid payment of the national
debt on the generation that has already borne
the losses and made the sacrifices consequent
upon the war. The people Of to-day have
secured splendid inheritance for their sue
cessors, and upon the latter should fall the
duty of paying the debt which grew out of the
war; The rate of interest on our national
obligations must be lowered. There is no
reason why we should pay higher rate than
is paid by England, France or Germany. So
long as Our bonds bear six per cent interest
in gold they will find their way into the
hands of foreign holders, and the country will