National Republican. (Washington City (D.C.)) 1872-1888, 1874-12-29

OF course we did not expect the Demo
cratic press like the Tribune and World of
New York to approve the new finance bill.
They dare not approve of anything which
emanates from a Republican Congress.
They have been instructed to simply
pitch into every measure or policy which
the Republicans inauCurate Their policy
is to be aggressivc-entirely so. Vocifer
ating constantly for hard money, there is
not one of their number who dares to adj
yocate an act for the immediate resumption
of specie payments. They all agree that
this desidcratum must be reached grad
Ually.
The Republicans have agreed upon
day for the redemption of greenbacks in
coin. 1t is farther removed than we and
many others could have wished, but it is
the best upon which our party could agree,
and they have promptly passed an act by
which two highly important results are
secured, perhaps the most important Of
any that have been discussed. First, it
has been determined that our greenbacBs
are payable in coin, and second that coin
budll NC pau lOl lllGLl vi anu dlNCA d vi .
tain date. We believe that it would
have been entirely safe to have fixed
q much earlier date, say July 4,
1876. But this was opposed by the
West and South on the ground that so
sudden a change as even that would work
a depreciation of their property amounting
to distress if not disaster. As the friends
of redemption believe that coin redemption
can be effected with much greater ease and
efficiency than is generally supposed, and
that the simple, authoritative, legal an
nouncement by Congress of its determine
ton to redeem its due bills in coin at some
certain future date would 60 very far to
the elevation of those due bills to a par
with coin.
1t is a sound principle of finance that the
thing TO be redeemed should not exceed in
intrinsic value itsSredeemer. If it does it
is only cheapened to the level of the re-
deemer by the process of redemption. Our
national bank notes are worth premium
of fully ten per cent over coin if judged
by the coin value of the securities pledged
for their redemption. But as the law
makes them redeemable in greenbacks their
market value is reduced by this process to
the level Of the Tedeemer. If therefore we
elevate the latter to the coin standard, as
is proposed by the new bill, the national
bank note will accompany it without any
further effort or additional security on the
part of the parent banks. This contrast of
relative values of the greenback and national
bank note has been fully and beautifully
exemplifed during the last few months by
the withdrawal of SO, 900 in bonds and the
substitution of $4,000 in greenbacks for
security TO the holders of circulating notes
of national banks. OF course the bonds
withdrawn were worth from S11, 100 to
81, 800 in greenbacks, whereas only IS, 900
had been deposited in their stead.
Now, this bill provides for reducing the
volume OF the unsecured due bills to the
amount Of $50, 600, 600 fractional currency,
for which coin shall be substituted as
rapidly as coined, and the contraction of
the greenbacks, which we have shown
above to be the cheapening element in our
present paper currency, to the amount of
$50, 900, 600. Here, then, is a paper con-
traction of $3.50, 900, 900 in round numbers
of our irredeemable paper, and the remain
ing $500, OOO, 600 of it made redeemable in
coin at the end of four years, when we shall
have an entire currency equivalent to gold
notes.
The Democratic press, and notably the
New York Tribune and World, which are
both VIGOROUSLY controlled at present by
the worst stock, jobbing spectators in the
country, do not wish for settlement Of
the financial question at this session at all.
They desire fuctuation in prices Of every