National Republican. (Washington City (D.C.)) 1872-1888, 1874-03-11

Congress Intends ct some time not very re-
mote 10 approach the coin standard.
The passage Of the bill introduced in the
House Of Representatives by the Hon. Free
man Clarke, or any other measure which
win secure like results, could hardly fkil' to
have the immediate effect Of restoring con-
hdence in the stability of the financial policy
Of the Government We have sevefal times
before referred to the peculiar adaptation Of
the provisions of this bill to the necessities
Of the times and urged them upon the atten-
ton of Congress.
An estimable contemporary illustrates the
practical operation of the leading features
of Mr.. Clarke's bill in the following terse,
clear and forcible language: cts simplicity
els not the least Of the arguments in its
favor. 1t Is intended in the direction of
"specie payments and an elastic currency
"by stated method. Free banking il the
"end, not the beginning, of his plan. The
"horse preccdes the cart. 1t makes specie
payments verify and not delusion,
practically retiring $50. OoO, 900 of legal
"tender notes by locking them up as re-
"serves Of banks, and requires legal tender
"notes to be redeemed in coin, tocommence
"when the Government has 500, 600, 600
lin gold on hand, as the basis for the re-
"demption of this remaining $2O8, 900, 0OO,
with the right to reissue the legal-tender
"notes, with the view of utilizing them to
perform all the services of coin.
at is believed there would be no danger
''of the Government not being able to pay
''coin for all of the $2O6, DOC, 900 that could
''be presented, even with IN organized at
tempt to annoy by demanding coin not
wanted for legitimate purposes, and about
''the only legitimate use for coin under this
''systom would be to pay forei N balances.
'tas the public would have full confidence
Gin redeemable currency, and, with
"a redeemable currency, over-trading in
'the way of imports, and in all other re-
'tspects would be checked by the banks
whenever there was an undue demand for
"coin, as it is now by the Bank of Eng
Gland. 1t is further believed that the ma
''tional bank circulation would be amply
guarded, as the coin required under the
System would be sure to accumulate long
''bcfore the time named for its accumula.
'tion, and there would he no possible dan
"ger thereafter. With two hundred and
six millions of legal tenders in circulation
'.'they would be as scarce and held as coin,
"and would, therefore, answer all purposes
"of coin. 1t is safe, at least, to assert that
nothing has yet been proposed which
clocks SO nearly in the direction of specie
payments as this bill-the legal tenders,
with prudent reserve, resting upon gold
and the bank notes upon legal-tenders.
Free banking, by this bill, is not au-
" thorized until the time that legal tenders
" are redeemed in coin. With free bank
" ing we shall have flexible currency
that is, banks can issue just as much as
" the legitimate business of the country re-
quircs, and whenever there is an excess
80 it will be sure to be returned for redemp-
!" ton, to be called out again when the vol
'' ume of business requires it. Thus there
" will be no expansion or contraction be-
10 yond what the volume Of legitimate bust
10 ness Of the country requires-the law Of
u supply and demand will regulate the cur
e rency, as it should. By this bill we hold
6 that the country could glide back to a
q specie standard inside of two years with
e out creating a ripple upon the money
g market. In this belief we earnestly ad-
9 vocate its passage, and we are sure that
9 Congress, from present appearances, will
have made decided advance if it evolves
anything which approaches it in sound
ness and safety"