The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-08-16
LIABILITIES.

Pray look at those figures. The amount
OF specie was less than nineteen millions OF
dollars. The amount OF their own notes
outstanding was three hundred and eighteen
millions OF dollars. The amount OF lndi-
viduaI deposits WIS six hundred ana eignty-
six millions of dollars. Now, suppose that
this were the year 1879, and that the banES
had resumed specie-payments on tne Isl Vi
January: wtaL, but " confidence What ou'
"erqdi, would enable the banks to keep
UP the pretence of redeeming their notes Id
sp:cie! If their depositors should be sczed
with panic and should make simul,a-
peous demand for their deposits, what
would be the result? The banks
could nay only one dollar III three due their
depositors If they were to use every dollarot
specie, every dollar Of their own notes, and
every dollar of greenbacks in their posses
sion. But suppose we admit that the banks
could by some process to Us unknown get
hold Of currency enough to pay of all their
depositors-.hal is, 1856, 600. The panic
would cause the depositors to demand specie
instead of the currency. Now, the fact is'
that there is In this entire country less than
two hundred millions Of dollars in specie.
How can two hundred millions redeem
seven hundred millionsf L. can't be done.
1t Is, as Governor ALLEN says, "a physical
imyossibility." And this is all that be
meant when he said that the whole doctrine
OF specie-payments was barren ideal,ty.
The World goes on to argue that paper
dollar which is not redeemable in gold is not
q dollar at all, but something else. In fact,
that it is "nothing." But the Worlds argu.
men. proves too much. If there can be no
valuable paper money, except such as can be
converted on demand at any time into specie.
then it Is a clear case that the volume Of the
currency ought to be reduced to something
less than two hundred millions of dollars, for
that Is all that could be redeemed at once, if
all the gold In the country were employed for
that purpose. But what will the World
repIy? 1t will say that bank needs only
one dollar in specie for every three dollars of
its own notes to enable 1t to redeem these
latter. Suppose We concede this to be true,
what then? 1t proves again that what GOV.
ernor ALLEN said is true: CoDfiieuce," or
0credit !" is the secret. So long as this con-
fidence 10 the banks exists they may redeem
all their notes that are presented by keeping
one-third Of their amount in specie but the
moment confidence" Is gone. and panic
comes, then it requires dollar for dollar.
Nothing less will answer. " 1t is physical
smpossibiIty."
We beg the World to believe that the
people who advocate liberal financial meas.
ures are not uninformed.> They are familiar
with all the facts and with all the arguments.
In the South this is especially the case. We
know from experience what an inflated eur.
rencg Is. We know, too. from experience.
that the contraction theory is 8 delusion and
q scare. During the late rebellion" The
Confederate Congress, surprising that con-
traction would enhance the value OF the
Confederate notes, passed 9 law re.
au'apy 0ne-tnird OF the currency to
be funded in b52ds. The result aston.