The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1875-02-13
A Simple Method Of Resumption.

All that heeu DC salu on the PRACTICAL side
Of finance, aud which contains all needful
direction for the cxtrication Of the coun,
try from its present anomalous financial
position. That one word is "Payr We
are not an insolyent nation, but, on the
contrary, We are a people rich in every
natural resource, abounding in activity,
ingenuity, enterprise, and wealth Why
shouldn't such people pay? Why
shouldn't everybody pay? But especially
why shouldn't the Government pay, with its
abundant resources and magnificent cred
il? The banks declare large dividends,
and are rich and prosperous, and their
issues of paper money are amply protec-
ted by Government securities to the last
dollar Why shouldn't the banks pay
We are so fayorably situated that we need
ha.slly touch the case of individuals at all.
And yet is there any reason on the face of
the earth why individuals, who are money
borrowers, should not be asked to pay also,
at least portion Of their debts
But setting this aside, let us conline
ourselves to the Government and the
banks. The Government is abundanty
able 10 take up and pay all its circulating
notes. This is clear, for it is only to
convert its floating into funded debt.
Nobody will dispute its ability to do this.
Not that there is any need or requirement
on the part Of anybody to take them all
up, or even any considerable portion of
them. But if Government will take up
so many circulating notes as the holders
require, and merely issue its own interest
bearing bonds for them, it will have done
everything necessary to remove the stain
of insolvency from the country, and not
to put us on level with all other specie
paying communities in the world. Is not
this great result to flow from such
simple transaction Is it not plain that
Government can pay? Why then should
it not pay, especially when such valuable
and lasting results would ensue from such
action? We say, then, let the Govern
ment pay.
And now, how about the banks They
hold more Government bonds than are
necessary to enable them to redeem every
paper dollar they have issued. Does any
body ask or want them to redeem all these
paper dollars which they have promised to
pay? Not at all. But if the holders Of
some of these paper dollars want them re.
deemed and paid, why shouldn't the banks
redeem and pay them2 Are they not
able to do so? To be sure they are.
Then why should they not pay?
Here then is the whole financial prob
lem resolved in the one word "Pay." II
the Government paid its greenbacks, aud
the banks paid their bills, or SO many of
them as should be presented on the an
nouncement that they were ready to pay,
the country could get back to specie pay :
ments in very short period, aud with the
Intervention of but small amount of coin.
Does anybody at this point come in and
say that this is to beg the whole question
at issue, and that the very thing We say
ought to be done and can be done to re-
store specie payments almost without a
shock, is the thing about which people
dispute. ft
Now, setting aside the inherent obliga-
ton of the Government to pay its debts
and of the banks to pay their debts accord
ing TO their tenure, let US see how this is.
We hold that in judicious hands the tran
sitiop referred to could be effected in the
present low state of the business of the
country almost without a shock. AN that
is wanted is willingness and little time.
But with our enormous annual crops Of
breadstuffs and cotton, supplemented as
they now are with an annual product of
the precious metals amounting to seventy
FIVE millions or more il is idle TO saw we
are unable TO nav. or 10 maintain n state
of the exchanges that will enable us TO
continue paving indefinitely without injury
or Inconvenience to our internal trade Il
is folly and worse, to assume that we are
an insolyept nation and cannot nav n il
not true. Besides. IL does not helm ns in
this resnect 10 keen the curre.cv denrec;-
ated. This does not relieve the rcsnopsi.
bic debtor. and the irresponsible spopces
his foreign and his domestic obligations
inst the same whether the circnlation bo
coin or irredeemable nanor In word
the solvent man has 10 nav and does nav
and tho insolvent cannot aud does rot ,ay
undar any oircumstanees We sbopld nj
wait or be expected to wait IN resn,nino
payment for the recovery of the ;nsolyent
! This will bc long in bsnnen;no and in
General we NAV saw will never barnon
| Wo contend that the ax;s,;nc MEANS ~
the country are annie 10 restore a sound
currency with very little effort if il were
/