National Republican. (Washington City (D.C.)) 1872-1888, 1875-01-27

cessfully tried by Great Britain in 1919
1922, familiarity known as "Peers act of
1875" and proposes to furnish gold at
certain fixed rates until par be reached.
Peel's plan was much more violently as
sailed than the present recommendation,
but was carried by unanimous vote in
both houses, and brought about the result
desired fully a twelvemonth earlier than
was anticipated. That disaster followed
was not the fault of the plan, but that no
provision was made in the bill to prevent
rapid and violent contraction of circulation
and discounts throughout the Kingdom.
This, in the act the President would amend,
is already prevented.
The keynote of this special plea of the
tribune for continued suspension is the
''impossibility of resuming with no specie
to speak Uf in the country" What, we
would ask, was the condition of Great
Britain when the policy, now ridiculed by
the Tribune, for resumption was inaugu.
rutedH For nearly quarter of century,
by subsidy upon subsidy for the support of
the armies Of her allies, had she been
drained of her specie and bullion, so that
in February, 1919, Immediately before tho
act requiring the Bank of England to re.
sumo specie payments, she held but IA per
cent. of coin and bullion against the de-
posils and circulation for which she was
liable. Her coin and bullion, Ia other
words, was but e4,01O, $50 against liabill.
tics of e27,577, 60O 1t Is worthy Of note,
In this CONNECTION, that England Is the only
nation that has ever como back TO specie
payments after prolonged suspension,
save through tho total annlhlatlon Of the
valuo Of the paper currency In circulation.
II Is noteworthy also thnt We never have
had In this country stock Of specie "worth
speaking Of" In 1860, In the halcyon days
Of Democratic hard-monGy rule, before
the war; the aggregate circulation Of the
banks was $2O7, 1924 deposits, $685.,
sO2, 100; total, S4GO, 0O4, COG, to meet which,
on demand, they held but $s3 504, 537 In
gold-cighteen cents on the dollar To.
day, after paying the January interest, the
Treasury holds $40, 900, 900 in coin-nearly
twenty per cent. of its demand obligations,
which, including coin certificates, we esti-
mate at 800, 100000. OF course the ordl-
nary liabilities of the Government arc not
included in this estimate, as ample proVi-
sion is always made for current expenses.
The New York banks, after severe drain
to replenish the Golfers of the Bank of
England, also hold $23, 900, 900, making,
with the stock of the Government, $685.
900, 000-$9, 500, 900 more than was held by
the banks of the whole country in 1860,
when specie payments were maintained.
We do not contend for resumption without
further preparation, but simply wish to es-
holds stock of gold proportionate to its
greenback circulation greater than was held
by the Bank of England in 1919 in proper
ton to her liabilities, and greater in pro-
portion and in amount than the gold held
by the banks Of this country in 1860 in re-
spect to their demand obligations. There
is so much that is sophistical, fallacious and
irrelevant put forward to sustain the posi-
ton taken by the Tribune that time and
space fail us for more than a hasty glance
at the most glazing of its assumptions. We
are invited to contemplation of the his.
tory of the Bank of France, but, designedly
as we fear, left in total ignorance of many
important facts and circumstances which
render the comparison utterly irrelevant
and worthless. The state of the bank in
June, 1870, is cited as showing what ought
to be the condition of our Treasury, for
instance, before undertaking resumption.
We are not told that never before or since
has the bank been so favorably situated
that it was and is under the strictest gov
ernmental surveillance, and at the time
mentioned and by policy of the profound
est wisdom it had been placed in a condi-
ton to sustain the strain of the gigantic
struggle which the Emperor knew to be
inevitable. At the time cited the bank held
&C per cent of its liabilities in COIN Moth
ing is said Of the Bank of England at the
same date, an institution better suited to
serve as a model for this country than the
Bank of France. Though considered in q
favorable situation, the Bank of England
at the date specified held but 80 per cent.
of coin and bullion in proportion to her
aggregate circulation and deposits. Nor
are we told anything of the present condi-
ton of these two model institutions. The
Bank of France, fully equipped for specie
resumption as she is regarded, has circu-
lation of sos, OCT, 200; other liabilities
$50, 500, 200; total 1894, 766, 400; coin and
bullion 1896, 1872, 554, or 43 per cent. of bull
lion and coin to liabilities. Should the
United States borrow but $50, 900, 900 of
coin, allowing that $1O4, 900, 900 of green
backs, which ore legal tender, are held
out of circulation by the national banks in
their vaults, scattered all over this broad
land, the Treasury would then be in as
favorable condition for resumption as the
Bank of France to resume or the Bank of
England to sustain specie payments.