The New York herald., 1875-02-13


SPECIE RESUMPTION INVOLVES NO COMPLICATED
LEGISLATION.
Again, Q definite policy OF contraction, once
agreed and entered upon. it does not seem TO me
that there need be o single lurtner legislative
sary to furnish the requisite supply OF notes for
cremation. There In no necessity oi talking OF
notes on presen tation and demand oy holders OF
the latter across the counter or the Treasury. To
else the junction OF banker and that. too, Of
political banker-a junction that formed no part
and which ali experience since the war proves Is
not desirable to have permanently added to exist
msnt haa 70 DO with the currency before he war
was to certify 10 the public, by affixing stamp,
tain dennlte weight and degree Of dneness Have
the American people seriously considered the
II the federal government, daily becoming more
and more partisan instrumentality, is allowed In
the iuture to do more than provide that all banks
and bankers, before Issuing their notes for circu-
latlon among the people. shall give ample security
for the payment OF all such issues in exact accord
ance with conditions specified Furthermore
there Is no necessity for taking any measures to
provide for any large or extraordinary accumula.
ton OF gold In the Treasury, or OF regarding the
future supply OF gold as serious element IN the
problem under consideration. The thing to be
SUe Of e s
debt. and Tor providing the proposed s26, 100000
per annum, or any other sum tnat may be agreed
upon. The government has at its disposition and
free use the borrowing power" the taxing
power" and the "power OF economizing its expen-
ditures." And how great power OF strength
ing the Treasury is available under the last head
is suficientIy shown by the general statement
tnat while the ordinary expenses OF the federal
government have been increasing since the
termination OF the M war at an average ratio OF
rate far In excess OF the rate OF increase or popu
lation-while the ratio of increase OF expenditure
In Great Britain Ior the purposes IN the
same period has not been IN excess OF two per
cent per annum, compounded annually, and tends
annually TO decrease. The obtaining OF so small
an amount OF additional revenue as woud be
necessitated by the minimum contraction pro-
nd n mat ffnr nnf m ha dad
In the light Of q serious obstacle; while all the
other difficulties which 1t Is popular to conjure
up in connection with resumption be best
solved, as Will be hereafter shown, by leaving
them to solve themselves.
NO SERIOUS DEFICIENCY OF CURRENCY LIKELY TO
RESULT FROM CONTRACTION.
also count as an absurdity the idea that the
affected by deficiency OF currency consequent
upon contraction in the manner proposed. We're
out OF existence Tomorrow morning there would
doubtless be much inconvenience experienced.
ana basSei measures were y dsappear: but In
either case there would not probably be one less
coal dug or pound Of iron smelted IN consequence,
and the Yankee nation would not merit It's title to
macS The same manner as before There never
has been Time IN tins country when any one
who mas nad anything 20 sell n which Others IN ,ns
lar equivalent OF some KIND OF value who ever
found himself IN want OF market. And, on the
OGner hand, II any one has to sell what the CON-
munity don't want and can't pay for he Will aud
duil market, whether the currency be scarce
abundant. During the winter which followed the
s"t tne Banks and the eeng e Of spss senepsi dis.
trust against paper money left the entire West
almost absolutely without currency; and vet
business went on, and the products OF the East
and the West were Interchanged very much as be.
tore. During the last thirty years The business Of
Great Britain has increased enormously without
any increase whatever IN the bank note circula-
tlon or any corresponding increase in the amount
OF specie held and kept IN use by the pubic; and
yet no Inconvenience from the lack OF circulating
effect exchanges
enced by the British public. The explanation Of
this Is that the small amount OF legally authorized
circulation in Great Britain is either by natural or
artificial laws kept so invarable in It's value, and
80 tree from fluctuations, that the British COM
inunity have come to regard 1t in very much the
same light as' they do the yard sticks or Dusnel
measures Kept at the Mint or the Tower.some.
thing not to be used much directly effectlng
exchanges, but as basis Tor the construction on
the part OF the public OF Otner similar instrumental
lties, which, so long as they are strictly conforma
BILE TO the standard, may be multiplied and used,
like measures OF length and capacity, without any
this standard Is erectualy maintained, with q spe-
Gle reserve IN the Bank OF England rarely IN ex-
hint OF how the United STATES Treasury can
60 back to and MAINTAIN specie payments with no
more gold IN us Golfers than the ordinary now Of
revenue will bring into them.
II Is SAFE therefore to afhrm That n, pending the
process OF contraction, the business interests OF
the country. in contrauistinction rom the specu.
lative Interests, should experience any deficiency
OF the circ4asing M meoiam ~ is entirey within
tner legislation. The organization or banks on
gold basis with power to issue currency, secured
In gold, Is allowable under existing provisions OF
law to any extent; ana II the community should
not resort to agencies thus readily available for
the supply OF currency during the period Of con-
traction 1t will constitute pretty positive proof
tnat no more currency Is needed. And apart from
the action OF tile pubic we may feel certain II the
comptrollers OF such banks saw an opportunity TO
Issue their notes aud have hem Kept IN clrcula-
tion they would take very good care to issue them
as soon as possible, without waiting for appli.
THE LAW OF SUPPLY AND DEMAND.
The equalization IN value between greenbacks
qualify OF the national currency becomes matter
OF no practical Importance, and NAV be lett TO
take Of f. se n Oy the
same time any vacuum created IN the volume OF
circulating medium by the cremation of $2G O00 900
OF legal tender per annum Will, by the operation
OF natural laws, Ce filed rom the worlds reser-
voir OF gold, including our own natural produc-
least possible DOUBT If there was real or anticl-
pated scarcity OF wheeloarrows the country
seriously propose that Congress should undertake
10 regulate the supply by statute. And yet there
ply OF gold and OF wGeebarrows. Tney are both
tools or commodities, anu the country will have
ana use all OF either t1at 1t can pro1taby. The
dentists and jewellers oil the United States have
never. even at the time wnen god commanded the
highest premium, experienced any difficulty
IN getting all the gold they wanted. We nave
never heard Jnat any OF them ever contemplated
pettionng Congress on :he subject. that they
lay awake nights Tor lear taat their business
would be lnteriered with by reason OF deficiency.
And II they had wanted ten or u hundred times
more gold than they actually used ana their custom
ers had 1een willing TO pay for 1t they could easily
nave had it, In snort, there can never be q per-
manent scarcity or surplus OF gold ana silver in
county which adopts the worlds currency any
more tnan there can be scarcity OIL mix or
wheat, Tor the law OF supply and demand regulates
the quantity anu ADJUSTS Tue prices one of these
commodities just as much as 1t does the oLner. II,
in the next tween. .y-lour hours one nuuIlreG mil.
lions OF legal tenders were to be ADDED 10 the cir
culatlOn oi the United States, domestic prlces,
other things remaining equal would on the aver
age be affected TO the extent OF not less than
seventh. and currency wond remain In RI spect to
scarcity or abundance relatively as before But II
one hundred mlnons OF gold, without labor, were
TO lie mysterlously snoNeied down upon
us III the form 0l com, IL would not
AFFECT prices appreciably, Ior the disturb
ance from the increased quantity would
he di1used over the lotal com circulation OF the
word, estimated ut upward OF ten thousand mil
lions lie worlds currency may therefore be
compared TO "a reservoir Ike the broad ocean,
capable alike OF quietly absorbing any surplus or