The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-28
Plans for the Resumption of.
Specie Payment.
THE DUTY OF CONGRESS.
An Easy Solution of the Problem
Without Shock.
The Record of To-Day's Vibra-
tons in Wall Street.

WALL STREET,
TIrEsnAY- Ian. Oft y. M

WALL STREET.
TUESDAY, Jan. 27-6 p. NJ.
The method whereby our government may re-
,sume specie payments without pecuniary emoar-
rassment and at the same time maintain ana
enhance the public confidence In Its Treasury
Department is now agitating the minds OF the
thoughtful portion OF the community. 1t Is con-
coded by every one that the United States-the
most prosperous Republic in the world. and grow
ing at u rate unprecedented In history-a nation
whose bonds find large and ready market among
its civilized neignbors-should at the earliest
moment possible institute some measure or
measures to redeem with the standard coin OF the
world the Indebtedness represented by the now
IRREpEEMABLE "pRoMis.s TO PAY"
commonly known as Treasury notes or greeCbacks
Various plans have been devised. more or less fea-
sible, but there seems to be disposition to delay
the matter until more convenient season. The
question IL pertinent, however-if our country Is
not at the present time in condition to CON-
mence to redeem with specie its paper currency
that is to say, to lay the foundation for redemp-
tion-when will 1t be so What plan will be prac-
ticabie as well successful and at the same time
result in the least disturbance to the commercial
ana financial interests OF tho entire country
Neither the West nor south will endure cOntrac-
ttOn but on the contrary both sections are calling
for either an increased or nextble currency that
will adjust itself to the varying phases OF trade.
There now III circulation about $3.50 900 Of
irredeemabie paper currency known AZ Treasury
notes or greenbacks. Therefore,
HOW TO RESUME.
FtrSt-Let Congress pass an act authorizing the
Treasury Department, for the purposes Of bank
ing, to issue gold bonds having nifty years to run
Tor payable in fifty years from date) 10 the
amount OF $500, 10000, bearing four per cent
interest in gold.
Seoond-A. the same time make banking free IN
all the States for any bank whose capital il not
less than 100000.
Tnfrd-Aow these banks to issue currency at
the rate Of ninety cents on the dollar, based
upon the four per cent gold bonds at par as secu-
rity for the circulation OF said currency.
FOurth-These bonds to be free from taxation
and the amount issued unlimited as to any partic-
ulsr State; provided, however, that the amount
in the aggregate be limited to ninety per cent OF
$400, 600, OOO or the sum total Of gold bonds. To
simplify the statement let it be the law that the
banks may issue ninety cents in currency on every
dollar Of the four per cent gold bonds at par which
they may purchase rom the government and de-
pOsit with It, to secure the bulhOiders on the cir
culatOn OF their currency.
EtfJh ana FtnGUv-Let 1t be enacted that the
government shall withdraw and cancel its
as the Treasury issues the bonds TO the banks,
this new currency supplying the place Of the
present Treasury notes.
THE FOREGOING PROPOSITIONS
do not involve immediate revolution or fOsce sud-
den changes likely to prove harmful. Two, three
or five years may elapse before the banks will be
In q condition to absorb these gold bonds to an
amount that will enable the government TO re-
deem all Of its Treasury notes; yet it may prove
to be practicable for the government to resume
with safety as soon as even SO per cent Of the
bonds have been sold and corresponding amount
Of the Treasury notes have been cancelled. The
nrst question that will naturally be asked Is.
'What will the national banks do when the gov
eminent resumes. specie payment" They must
take care of themselves. In other words, they
must prepare, as they can well do under
TIE GRADUAL OPERATION OF THE METHOD
to adapt their business and circulation to the new
order OF things. Let the national banks put them
selves In position to hold at least twenty-five per
cent In gold or legal tender notes security
against their liabilities. This will enable them TO
approximate q condition in which they may
sumo specie payments when 1t is done by the gov.
ornment. Neglecting such course the conse-
quences would be disastrous only to themselves,
inasmuch as the biIlholders and the public would
be amply protected against loss, the government
on deposit in the Treasury security for the ma.
tional bank circulation. One thing Is certain.
SOONER or later
THE GOVERNMENT MUST REDEEM
its outstanding paper. When and how it shall be
done are the only debatable questions. Within
two years the Republic will be century old--a
century crowded with events and records of prog
ress more ", lderful than any the world ever be-
fore saw. We have grown rich, extravagant and
careless, but among all national ollies there Is
not one which to-day stands out in such
bold relief as the fact that an indebted
ness represented by an irredeemabe paper
currency remains unpaid; and, incredible
as It may appear, it is currency which
the government will not receive in the payment Of
debts due to itself. For ten years thks cloud of
disgrace has hung above the country, and he is
not true American who does not earnestly pray
that It may be speedily dispelled. The Treasury has
given us imitation to an already dangerous extent.
Now let Congress give us currency represented
by and redeemable in gold.
II a stranger had overlooked the Stock Exchange
to-day from Its gallery ne would have declared
that there was an extraordinary exhibition of
business. He would have heard shouts yells and
the entire gamut Of vocazation-all in behalf of
what to him would have seemed speculative and
active market. To one familiar with the place.
however, 1t was puppet show--tdntocctnnt played
by strlngs-the manipulation of a few hands, the
pulling OF wire here and a cord there. which
made brokers dance according to their respective
orders In other words, the market Is the creature
of u clique. Three months ago this article tndi.
Gated the then and the probable condition. The
probability has since become reality. Beyond the
work OF
A FEW CAPITALISTS
whose names can be counted on the angers OF
ones hand, there has been no result communicated
to the market that demonstrates real strength to
speculative securities. Logically. stocks should
improve In something like a ratio TO the progress
OF commerce and general trade. But this has not
been the case. The SPECTATOR has awaited himself
OF mere speculative falsehoods. He has depended
on Congressionai promises and expectations. He
has erected a crystal palace on foundation OF
sand He has built his fabric on false homes forti.