New-York tribune., 1874-03-07
RESUHPTION Or SPECIE FAYNgNTS AND
FREE BANKING.

TO the EditOr OF The TrtbUne
SIR: do not pretend to much knowledge in lnsn.
oial matters but should ike TO know why the en-
actment. by Congress- OF the following bill would
not be the best thing t) do:
A blH progdng f1r Bts Resumption Of Specie Pqymsns
ami Free BqakiAg
Be e.qcleG de- That snail be the duty OF the See.
retary the rrcasi to cause To De engraved and
printed notes Of tho denomination of ye. ten, twenty
ity and hundred dOIlar. to the aggregate amount
OF not oxcooding four hun Irod millions Of dollars IN hs
following form. 70 VIII:
'Oue year from date, presentation at the Treasury
OF the United stItes at Washington, ot the subTea
ues the United States ia eitror OF the cities OF Now
York, PhIlaiephil, Boston, Cincinnati, New-Oreans
Chicago and st. LOUIS tnis note for the sum OF -
dollars will be paid the gold or silver coin o. tho
United States" which SAID nOt53 shall be signed BY tno
Register the legal tender notes nov
signed Progided h0re0s tAe SAID notes shall be dated
the first day 0 each month, and greater amount
than FIVE million Of dollars shall bear tha same date
That 1t snaa the duty Of the secrotary Of
the Treasury to rodeeW he end Of each MONTH the
present issue OF fractional currency aud legal tender
notes 10 tho Aggregate amount OF five million dollars
by tho substitution OF the same amount IN the note,
hereby authorized to be- issued and which shall De use
FOR no other purpose and when said frdc Onal currency
md legal tender shall BE- 80 redeemed thoy shall
ba Cancelled and destroyed; and Whenever. ana A. fI5s
as the notes hereby authorized 20 be issued sAi b. -
deemed IN gold silver, they also shall b c1nce.eIaai
destroyed.
SIC g. That It shall DO lawful for any three nia
persons 70 form .ocaton for the purpose ol tas
acting the business banking ami when 50 formed ani
copy Of their association shall be hlod with the Cor
trOler OF Currency, and they sha, IN all other p
speets comply with existing laws IN relation 20 Si
tiona Banks they shall be governed by ana be entitled
to all the rights AMI privileges nov conferred ol "a
tlOnal Banks by said laws.
SEC A. An acts and parts Of acts conflict W.T. To-,
act are hereby repealed.
Under the provisions of this oct the legal tenders
and fractional currency will disappear at the rate 4
fyemlions of dollars per month, requiring six years
and eight months to end them The vacancy IN ths
circulating medium thus created will be hllsd, ~
fast as created by the gold notes issued by authority
of this act. which, after one year, viii ba redeem /
in gold or silver at the rate of five millions OF dollars
per month, on presentation in accordance wi,l to
law.
After few months. however. only small portion
Of this amount VIII be presented. because the pa y3
mind will then rest satisfied that the specie can Os
obtained and it will not be demanded The gold
notes will be preferred more convenient IL ..s
transaction of business, and will 20 into ciFcus.o
as gold
The fact that five millions Of dollars of lugll tcn-
ders are TO be destroyed each NORTH. and ihcr
places supplied by gold notes will sOapprecate lgf
value that the difference between them and spsco
will soon become only nominal. The currency OF ths
National Banks rendered free by this act will tax,
the place of the legal tenders and gold notes they
are redeemed and Cancelled and VIII he equal ID
specie because then it must be redeemed in specie.
In this way can pass 50 certainly aud gradually
into specie payments as to occasion shock 10 5us
ness. When that point is reached the commercial
wants of the country will regulate the amount Of
currency needed, and then there viii be neither
stringency nor imitation. Confidence being thus
stored we will take our rightful stand among tas
specie-paying nations, and our country Will malo
such rapid progress in all the industries that con-
tribute TO national wealth rs to continue 30 be tie
wonder of the civilized world. }. d. D.
Hdshiagton. Feb. 2j 1871.
THE veteran editor whose initials above viii bs
widely recognized, proposes Free Banking in con-
junction with system of issuing SjO)O0JJ month
in gold notes. to be redeemed in one year. in order
TO withdraw and cancel the present cIeenbacts
We fear that the only part OF it likely TO be popular
would be the Free Banking. and that the specie re-
sumption would prove only stalking horse for tho
rest Certainly Free Banking, if speculation should
turn that way might do immense mischlef-Edl