The New York herald., 1875-02-13


gaming table on a par with our legal tender we
Chances in his avcr rom hour to hour and from
day to day, and decide, II he SO DESIRES that the
player snail not nave any chance at ALL
GRADUAL CONTRACTION NOT LIKELY TO OCCASION
FINANCIAL DISTURBANCE.
From the time that Congress January. 1883
took from the Secretary OF the Treasury the power
previously bestowed almost without opposition,
TAKEN for granted by tSs great majority Who have
undertaken to discuss specie resumption that the
exercise OF gradual contraction necessarily In
wolves financial disturbance, paralysis OF indus.
try, interruption OF Notwithstanding, in
snort, OF disagreeabe nature TO be forced on al
the way OF sell-derial 10 be voluntarily endured
by the more virtuous. For this opinion there does
foundation; but, on the contrary, believe that II
the process or contraction be made so gradual as
would be not only no marked financial disturb
ance or inconvenience to solvent debtors; but
been seriously I entered sS upon which % day by by
ersatsr ssasy tab and lnsurna Increased
security Tor investments, would OF Itself 30 rap
greatly stimulate every department OF productive
Industry. Money tcapita4 on cal loans is super.
or m peod u cam on be-
with great difficulty. II at all. For this pnenome-
non there is out one explanation-namely lack OF
confidence in the financial iuture-whcn lack OF
confidence viii continue until we agree upon
some nauonal fiscal policy looking to the resump-
to satisfy the community tnat 1t can ana Will
be carried out. Give the country this and busi-
the sherman Finance bill. which, while promising,
embody no conditions Tor making good the prom
Currency. as measured py the premlum
on gold, was reduced between 1865 and 1871
from 1873 to TO- and the burdens OF debtors who con-
tracted during the same period TO pay IN currency
were also increased proportonally; and yet there
was no complaint on the part OF debtors that It
was unusually difficult for them TO meet their Obli
cations during this period. ls 1t not, then, on its
lace, an absurdity TO- talk about the Impending
industry IN case effective measures are taken to
cause the remaining discount OF ren or twelve per
cent on the paper money OF the country to dis.
appear within the next four years at an average
raie OF two and halT to three per cent pei. an
numa II any direct evidence is needed to
strengthen our faith on this point 1t Is to be found
In the recent experience OF France. which, be.
view OF 1nsuring q return TO specie payments,
contracted her circulation TO the extent Of over
$2OOO0ooOO, and this too, without in the slightest
degree impalring or weakening, but rather
strengthening her credit, resources and IN
Bank OF france 500, 600, ,ooS ofts paper money and
increasing the specie reserve OF the oank by more
Another striking illustration OF the extent to
which the evils OF contraction exist only IN the
imagination Is 10 be found In the circumstance,
not generally known, that during the last two
months in which Mr. McCulloch awaited himself OF
his power OF contraction. and Wall street and the
paric about 1t rs to induce Congress, almost unan-
imously, to take away the power there was IN
sense OF diminishing the number OF instrumentali-
ties for effecing exchanges in the hands OF the
mere bookkeeping entries in the Treasury edgers
and assuming that reserve OF notes In the Treas.
ury mot one OF which ior months had been In the
diminished; but which diminution according 10
the subsequent theory and action o. Messrs. Bout
well and ri chardsOp, never in reality took place.
but was rely financial fiction, ready. and N
lact made to yield on the occasion oI any emer.
Unqestlonably the certainty OF O restoration OF
specie payments. consequent on the adoption OF a
fixed policy, would induce great caution and a
conservative feeling IN respect to all financial
transactions throughout the country. But this,
most desirable. The Interest Of the wv Whole Ss cou co
try demands that for the present, at least no
prises which viii not yed aacK and remunera
tive return, even II certain individuals Interests
be thereby injurlously affected. No possible detrl-
ment, moreover, can cume TO any branch OF bust
ness from the restoration or tie present uncertain
value oil the currency to u fixed ana stable value,
except such as are merely speculative and the
prohLs OF wnich accrue more from fluctuations In
prices than from the honest employment OF labor
and capital for truly productive purposes.
THE FUTURE OF THE NATIONAL BANK ISSUES
AS with the question OF the supply Of gold" and
the natlonal bank issues does not seem to be
subject requiring any additional legislation. In
mlhlshed by cremation the banks must nave gold
with which to redeem their notes. But TINS Is not
prospect to be regarded with apprehension. 1or
just in proportion as the volume OF legal tender
notes IS diminished below the natural volume OF
currency needed natural laws will supply the
vacuum with gold just as certainly as natural
any community and i there is no excess % Of cur. r.
for redemption wll be comparatively In:
that bY the plan proposed OF destroying
$4,000 600 Per annum. 1t would take at least three
Sreennacxs and between fourteen and iftsea
years to effect an entire disappearance OF the legal
nor hnck n f,ia
basis 1t Is difficult TO see now the change can be
effected more gradually or the BANKS treated more
WILL IT PAY TO ENTIRELY WITHDRAW THE GREEN
BACKS
1t will be observed that favor the entire with
drawal and extnguishment OF the green0acks. /
desire the federal government to get out OF and
business OF creating and issuing paper moaey, be
1t redeemable or lrredeema0le Ior believe as
ogniZe anything as monev except hard matter-ol-
iact "labOr representing" gOd and silver, just so
long the country Will not have the stable and
fuctuating currency necessary tU put
a par with other nations in comme rcia
dealings and secure the most rapid aud iull deve.
opment OF our great national resources. A with
drawai OF $685., 100000 lOn-lnterest bearing LEGAL
tender reckonln2 interest AZ i've per cent? would
be equivalent TO an annual loss to the Treasury of
$l9,O0O,O0O But what Is this In COMPARISON with
the loss annually sustained IN the country by real
son OF the constant nuctuaton in the value Of our
present currency-au aggregate wnlcn no one who
mas given the subject any attention would think
OF estimating at less than $2JO.O0O,Oo0 per annun,
diversion OF labor ana capital from productive
poyments to speculative pursuits and enterprises,
Through the Inducements and temptations when
are always offered by an rreueemable, nuctuatng
paper currency. There are at present $780, 900
OF irredecmaDie paper In constant circulation,
the value OF when Is rarely the same one
day with another, and yet every time
this $75O.000,0 900 nuctuates one per cent there
is the opportunity aiorded Tor $780, 600 to change
hands without value received The all-suliclent
answer to all those who hOld to the continued use
lrredeemabe paper, rs well as those wno hold
to the theory that IL does not pay to accumulate
and Keep al great expense a large amount OF goo
ana silver, Ill order TO use 1t as currency or as
bass OF currency, Is, that the essential element in
money, as IN yardstcks, pound weights and
bushel measures, Is staulllty, or absence IN the
highest attainabe degree or q tendency the
part OF the measuring instrument to measure dit
erently under different times ana Gil cumstances;
and that one OF tie most costly lessons which the
world mas ever learned Is tnat there Is no cur
rency Tree from nuctuntions, occasions so little
loss OF brings 50 much prosperity to It's users as "a
currency based upon or actually consisting ol gold
and silver. Economy by using paper III The place