National Republican., 1875-07-30

confident as not to discriminate between
the pledges of the 9overnments and
the unquestioned Presence Sof gold
metal. This difference of faith be-
tween these pledges, or greenbacks, and
gold, is the occasion of the depreciation in
value Of the latter below the accepted val
uation Of gold. II 1.-The greenbacks-
could by any manner OF means be made as
acceptable as gold there would be no differ
ence in the confidence of the public be-
tween the Governments paper pledges and
the gold ITSELF Practical specie resump-
ton would then be effected. Nstionsl bank
notes would, under every circumstance,
be as good as at their ultimate redemption,
because legal tenders, into which they are
transferable, would be IS good as gold.
Il is apparent, if these assumptions are
admitted, that the only requisite to place
our currency on gold basis without con-
traction is to solidify the basis on whichthe
greenbacks rest. If the Government could
and would do this, 1t is, perhaps, probable
that all our pending difficulties, including
a fear of further shrinkage of values, would
instantly disappear. But how can this be
donef The act ''to provide for the resump-
ton of specie payments, " approved Janu-
sry IA Of the present year, empowers the
Secretary Of the Treasury to do certain
things, as follows: =
"And on and after the LIST day Of January,
Ammo Domini 1879, the Secretary Of the Treas
ury shall redeem, in coin, the United States
larra Sa,,d ,dar- ,Ofa han lr1tat their
presentation for redemption at the office OF the
Assistant Treasurer of the United States in
the city of New York, IN sums Of not less than
fifty dollars. And to enable the Secretary of
the Treasury to prepare and provide for the re-
demption in this act authorized or required, he
is authorized to use any surplus revenues, from
time to time, in the Treasury not otherwise ap-
propriated, and to issue, sell, and dispose of,
at not less than par, in coin, either OF the de-
scriptions of bonds of the United States de-
scrfbed in the act of Congress approved July
II, 1870, entitled 'An act to authorize the re-
funding of the national debt with like quail
ties, privileges, and exemptions, to the extent
necessary to carry this act into full effect, and
to use the proceeds thereof for the purposes
aforesaid"
/. !. This, it will be seen, gives to the Secre-
tarY the power to enhance the value of
legal tenders in the manner we have de-
scribed, on and after the 1st of January,
1879; but in the meantime they will con-
tinue to hold their deprecated value, and
the tendency of commercial transactions
will be to continue the distrust in them,
because the fear is generally expressed that
the Government will not be able at the
time specified to meet the demands made
upon it for their redemption. 1t was ex-
pected that the passage of this act would
instantly appreciate their value, because it
was believed that the anticipation of their
redemption would revive or build up con-
fdence in them. This expectation has not
been realized, and it is now suggested that
the authority to use the specified bonds
t'from time to time" for redemption pur-
poses shall be enlarged so as to allow the
Secretary to create a sinking fund, so to
speak, to be used for the purpose of gradu-
ally accumulating enough gold for the OBJ
ject sought. He might also be allowed to
issue new bonds as Q basis for the green
backs. This would at once put them on a
level with the national bank notes, because
their ultimate gold redemption would
thereby be assured. Knowing that they
would be ultimately a. good as gold, the
public would accept them at par as the
representation ofso much gold. The pub
lie debt would thereby be increased nearly
four hundred millions, the interest on
which in round numbers would be sixty
millions; but this additional expense to the
taxpayers would be more than compen-
sated for by the solidity it would add to
real-estate and other values, and the unde-
niable prosf it would give that no shrinkage
of values would occur. The Treasury then
would be required to keep on hand only
sufficient amount of gold to redeem legal
tenders as they might be presented in re-
sponse to the demands occasioned by changes
in the balance of trade between this and
foreign countries. Exactly how much gold
reserve this would require it is difficult to
estimate, but the amount could be provided
for under the section of the law above
quoted. At any rate the assurance to the
public that greenbacks have an ultimate
gold value and are always secured by &C.
tual deposits Of that value would have the
effect to lessen the demand for their re-
demption, and the Treasury would then be
able to meet imperative demands, which
may be fifty characterized as foreign de.
mands, or demands of the balance of trade,
without extraordinary exertion. In short,
if the Government should give greenbacks
q solid basis, together with free banking
upon. an equally solid basis, the public, for
convenience sake, would prefer their use,
and would only demand gold upon them
when extraordinary circumstances oc.
CURED, such as we have described to be
foreign or balance of trade demand. But,
above all, after time, greenbacks would
become acceptable as currency abroad.
They would, of course, be subject to de-
probation occasioned by the difference In
exchange, which is regulated by the f1uctua-
tions of commercial transactions; but they
would, nevertheless. be recognized as good
as they will be after specie resumption, be-
cause they would have the merit of being
assurance doubly assured-i, g., that both
the faith of the Government and gold de-
post would await their redemption.