New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-04-02

hank will nay his check the that have that my
friend, de9ss b IN y TSs enables the snd
The book credit or any currency To take the place Vi
When tb, support is broken. when citizens begin to
doubt the sovency banks and bankers and negbors
the solvency OF eaeh Other
THEN CONES A PANIC
,be child OF distrust-and all refusing every form OF
credit. note or draft or bill or check demand money
currency il, yaueess the delicate machinery Of credit
which the nges have perfected to work and man.
I'm the frenzy OF dsIrust, RENTED to his original par
hatism, win take only gold Uhtl the phIlc Is nopeIe
il law interfere they Will obey It, and take the laval
money which the law eniOrces. III the panic u noPc
~, ib creditor donhtng The ultimate sOlvency even
- ~. government refuses its legaltender and peace
comes only in the utter rum OF ulhErpcy ius tr1Vp
~ tho nanna nave asked fifteen millions OF legalzed
money IN de fhe work Of hundred Millions and II
cannot. .uio- ,ho ro.ethui,,, e., ,,e
bui,au heart suddenly to lose It's normal trust III us
Kind And The human heart Is the same and VIII act 10
the same causes, whether the egal money II Bou Or
o,bar II ~ naper We shall be liable pGnics always,
for We can never make the exchanges OF our piesnt
cylIization for money, but must always use credit
mainly And when we credit ana the human heart
rc,nains is. weare always SUBJECT 10 me ihcuiSh
o. lnat & ,"ic viii reign All we claim is that
the liability 70 this DcurSion Oh dlSJIst thl pane ~
naturally greater under an IRE lccable currency uo
evils OF an iredeemable currency W Gnicn d
already alluded tend strongly 10 produce IT, u1u
strongly to aggravato and perpetuite ~ WITH
nroducsd The reign % paper money gives us specu'
intion and extrayagauce. BOth use No money Zap,
is felt. and people whose morale mas neen sapp9u D,
They Recognize and eXaggerate consequences when
tbcV have no to endure; ana III speedy loss vi
wnub-money Aud the loss of trust. which leads men
temporarily 10 despise credit ana seek OhB eou. -
pa9c Paer MONEY has ptoducs cna ~, e1Irrenci.
wTl aggravdte 1t. Had VIC redee ma aot Of
currency that the solvent world has the Slo Mat "
money would be met Ihe sPa %, Market Would come
10 orr relief The profits offered wod oVcIcuno d.,
obstacles and Drain tho world were II necessary. D.
II ia nnt IL an uurcasoung panic. Tue arrival VI
little gold, the news OF 1t Oh WesterhS SNIP o'"A'
| the spell.
AND CONFIDENCE REIGNs AGAIN
| Where we have national currency OF our own-tho
best in the worid-here II no such remedy, 10 such
cure The national issue if 1t has any valne. mas
limit The people know limt-know that the limit
fixed for II normal condition OF the market IS lnaeeltIe
now And IL 10 has no limit the most Ignorant kho" u
Is worthless its legality fails to give IL curtency, anu
the national issue dsappears win the 0Ohinehi g.,
me French assignat, the Texas redbacK, the oo"'h
| American shlnpaster - -, .,,., mill
| rpaTd and cure them. 10000, - .
And here roo Is tine folly of argument based on
don tia governments can tell now huch "gal
,L, a. vain one Tor the amount shifts from diy to
day. rem market to market IN norman conuoi 49,,
nj nr bundred millions; in times Of panic NewYork
| needs one hundred millions OF legal money 10 40 the
| auxious legislator manufacture for Newforks wants
Shall he make hundred mlionf Ihen ~ WIN TAXI
he make il five mliOns II the panic continue. ne can
puy hs ten-penny loaf Tor half cent. would counsel
the anxious legislator under these circumstance 10 o'
IN and let God and fortune take care OF mans wants
Without further discussion let us assume,
l. That gold as the only basis OF a SOUND currency
Tne p9per redeemable In gold ia the best currency
B. That currency always perform The larger part
! of the worlds exchanges. -. 49,, -.
That currency is that form of credit which gets its
birth IN business transactions, and represents an exist
| ing value-eIther gold or property ., :;
g. That, currency untrammeled ny governmental III
! reference, regulates its own volume ,,
G. That governmental credit not representing gold In
the Treasury not Issued against property Ia existence
but AGAINST property consumed or destroyed Is bas-
tard currency; and as foreign ana supefhuous tic
| ment deprecatcs the currency of the people. 800, -
all classes but throws the material loss and suffering
| mainly On the farmer and lahOrer
T. That deprecated currency tends to create and
s. That ii is our duty to esslate in the direction Of
| specie payments.
Now come to the
BILL OF TIE COMMITTEE.
break no confidence in saying it is the bill OF no mem
bert is literally the dill OF the committeethe result
of conflicting views. part Of its provisions like a
part do not But willing, a whole, to take It,.
believe there Is more good Ia 1t than harm points
and moves in the direction OF specie payment That IL
something. 1t tells the people we mean to be honest,
wien afford 1t; That we VIII make no more
forced loansssuc no more Sreenbacks Dnt VIII Dy de-
groes redeem them all Perhaps AFTER ALL II Is not safe
| to faster.
procaimng resumption the chief glory Of our Cen
ennial relying upon our ability to borrow sufficient
star in Philadelpha's galaxy l believe thai gold
enough, without panic, could be obtained In the Eu
ropean market to the demands Of graduated
resumption. which should be complete on the Fourth OF
july 1876. The suffering IN my opinion, accustomed by
sucn resumption would be slight compared win those
following deprecated currency. -
But in this opinion majority OF my colleagues OF the
Committee do not share and the result Is the
COMPROMISE OF THE EIGHTH SECTION.
which provides for the gradual reduction OF the
OF legal tender The method was selected the
involving least distress. The contraction is gradual
and slow. At tho beginning the currency is not con
tracted at AL The quantity OF national notes Is not
are Of higher value, but this value is not for
tmo annreclahe and 10 the end they can be used a.
legal tender. For the two millions each month with
drawn two millions are immediately substituted. These
greenback, although they have the further merit OF
rying the promise OF repayment In gold at a definite
We have therefore until two years have elapsed still
four hundred millions OF promises out but Of these PROM
ises two millions monthly are assuming a definite and
character For two years then there be
no contraction OF the Volume But Will not the gold
greenback be hoardedi Yes, by the banks who being
paper greenbacks. and use these instead. The banks
need hundred and forty millions for their
40 that the banks will furnish depository for
than tho fifty millions, which can be issued for two
years After two years there will be contraction by che
amount Of two millions for each month. In the
time should private citizens compete with the banks
for the gold greenback which scarcely probable until
the OF the banks supplied the gold
in private hands furnish slight elasticity in the
rency which may nave It's use.
THE GOLD GREENBACK
at the worm scarcely than the paper green
| back; but as it approaches the time Of payment in
creases rapidly value that the tendency constantly
increases to withdraw 1t from circulation. But 1t is
still money a great demand for money, increasing Its
rate, would force 1t into market again.
Let us not forget Ia examining this method that the
action taken is final and cannot, by indirecton, be re-
pealed by the Government The dshonored and indef
mite promises that have been Withdrawn Cancelled
never to be ressued In their place promises so ex
plct and definite that Congress would dare break
them. Two millions Of rredeemaDle paDer is destroyed
each month. aud cannot, except by direct of
| eregnty, be recreated.
IL should unnotlced in considering the value OF
,h{a hat