The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-10-26
RESUMPTION.

Hugh McCulloch, ex-secretary of the
treasury, in one of his recent letters to the
Tribune, suggests & way to the resumption
of specie payments without deranging the
currency Of the country. 1t is in substance
that treasury notes shall cease to be legal
tender after the first day of January, 1878,
but shall be made, by law, Immediately
convertible in bonds bearing interest at the
rate of four or four and half per cent,
principal and interest payable in gold,with
the further provision that bank notes, 1t
required by the banks, may be issued equal
In amount to the legal tender notes thus
retired. His argument is to the effect that
the number of bank notes would be regu-
lated by the necessities of trade, that any
excess would be of short duration, because
they would be sent home for redemption
and if the bank was unable to redeem, the
notes would be sent to the United States
treasury tor redemption and the bank
would be compelled to go into liquidation.
The adoption of such measure, he thinks,
and perhaps truly, would Immediately stop
the flow of specie out of the country, that
greenbacks would rapidly appreciate to
specie and that confidence would be at
once restored, business revive and activity
and prosperity take the place of stagnation
and business distress.
If such course would restore prosperity
and give US good money without deranging
the currency of the country, return to
specie payments is much easier, much more
simple than would seem from reading his
plan. But two more steps are required in
order to reach it one year later than he
proposes-and so long as the time is abso-
lutely fixed, one year cannot make very
much difference. As the law now is, ma
tional bank notes can be issued to any ex-
tent desired. The currency of the country
can be expanded to any amount, or it can
be contracted in like manner-in a word,
the desire of the Ohio inhatonists can be
gratified, If they will only consent to sub
stitute national bank bills for treasury
notes, and the volume of the currency"
can and will "be made aud kept equal to
4" the wants of trade" Our free national
banking system provides for all that with
out the necessity of the further legislation
suggested by McCulloch, authorizing
banks, if they should require it, to issue
bank notes equal to the amount of treasury
notes retired.
Go ton I'm oaf 10 do f.,r tl.v
sumption of specie payments, passed at
the last session of congress, authorizes the
secretary of the treasury to issue such and
80 many of the bonds of the United States,
bearing interest at the rate OF four, four
and half or five per cent, as may be
necessary, in order to provide, not gold
necessarily, the means required to resume
specie payments. The issuing of bank
notes and of bonds being provided for, II
only remains to make treasury notes con.
vertible into gold bonds, and to provide
that these same treasury notes shall cease
to be legal tender in order to fully carry
out McCulloch's plan. Indeed, we believe
the whole thing would be accomplished by
. making the treasury notes convertible into
bonds without the further provision thai
they should cease to be legal tenders. The
convertible quality would OF itself tend to
withdraw them from circulation, as they
would be eagerly sought by investors for
the purpose of procuring with them gold
bonds at par. But to make assurance
doubly sure, it would be better to adopt
both suggestions. The democracy, who
insist SO strenuously that they are e hard
money party, have the control OF the next
house of representatives and, hence, the
power of showing their faith by their
works. # they are wise, they will adopt
Secretary % McCulloch's suggestion--bu,
they doubtless lack the wisdom to do it.
if