New-York tribune., 1875-03-04
Netr York, Feb. %, 1875.

DEAR MR. WEED: The tendency Of thought grow
Ing out Of my vocation, coupled with the experience
gained in IT, has led to be particularly Interested IN
that part OF your letter just Published which refers 10
the contraction OF the currency and the resumption OF
specie payment. You must let me say that You are
right in your statement that had gradual contraction
OF paper Issues been mantaincd specie pay
mept might have hailed the signal and crown
ing glory OF the approaching centennial anniversary or
our National independence" In my opinion 1t needs
not be much further off now, IL Congress Will boldly
take the necessary action without delay P-rhaps the
time for taking tnis action may no for long, be 50 OPP
perfume as at present. When paper money cannot be
lent on call" at over q and per cent annum in
terest IL Is obvious that there is surplus OF It, which
can Oe Withdrawn with very little II any deranGement OF
the business alrs OF the country, while the experience
OF the past certain that trade and commerce
can grow aud prosper here six and seven per cent
money market even at higher rate than seven per
cent, IL on q specie basis.
Until very recently, one great obstacle 10 resumption
has been the rredeemableness OF the National bank
notes. But that obstacle IS now removed and redemp-
tiou OF them Is now going daily in Washington, under
the system established by law. Here, however, the
question arises In what National bank notes re-
deemeda They redeemed IN the legaltender issues
of the United States Now, these later-the medium
of bank note redemptOnlre raised TO specie value IL
is plain that should have at once specie resumption
complete. An additional question Is. How to make the
"lega tenders" equal TO specie There is only way
to do this not empirical, and that is you suggest,
gradual cOntracon-So gradual as mot TO arrest or
paralyze business enterprises"
The volume of all our paper ssues-bank notes. legal
tenders and fractional currcncys in round numbers,
about $500 OOOOO0 and tho premium gold. Of
recent years. may he put at 12i per cent. The
relative proportion or premium, then, Is as one
eighth to the total OF our paper Issues; and
tni, rate Of premium Is 4 tbermometer which indi-
Gates tnat we have oac-eghth, or sl0ooOo,Oo0 more
M uf absorbed
ness purposes TAs surplus OF SlOJ0OO0 therefore, Is
the com parativcv small amount which needs to be got
rem ont OF the way by gradual contraction. whether
the contraction OF legal tenders SOOOJOO) should be at
the rate of twO three or i've millions month the test
OF trial alone can determine. FJr myself do not hes
tate to say that thnk five millions monthly for the
nrst ten mouths aui three millions monthly after that
until the limit is reached. wOu!i not harm any Iegt
business enterpriseS; hut II that contraction
proved too 1t could Ge arrested at Secre
try McCulOcuS 1ealthll sequeSrltOn under the law,
Of six millions OF 9reenOicS month was ended, by
Once let the most limited contraction begin to work.
and the premian on gold would begin TO melt IKE
snow birIier-he faster smaller. for with the
| contraction would come other forces hcp pre-
mhn downward, such as increased business confidence
reyiving trade increase Of population, all OF which
would together help tl.ne 20 absorb the present
dundaEcy o paper, unt sp ce oLss or ts equivalent,
! No preminm COM aud tne volume of plpor money
| the country is capable Of absorbing would meet
| quietly rs paro streamlet meets 10 wing nyer.
hut there IS one NOR. thought IN connection with oar
present condition OF in11tei currency, which In
fct you. Let me state 10 hypotheticaly. Suppose
we became ideply inyoVel in war with some great
! foreign pDwcr-5ay England France, or Germ any Z
Where cOlld We raise readily tue money u carry II on
la the absence Of qdcE foreign market for our bonds
at any price II We issued more paper money In
addition 10 the present plethora OF It aud then noe
PAPER aud then IN re paper result would
selves suca tnat the enemy could SIT at distance and
| at ease, aud patiently wait Tor the explosion OF our
| bubble and the ealImities which would follow. An
early return to specie pay mens Is not only required to
restore domestic prosperity, but to Inspire with need
tul confidence case OF complications with foreign
powers. Trusting tnat our people may soon DO all OF
mind, IN this conclusion renaa very trny yours
| Atjany, Feb 20, 1875. j. H. VAN ANIpsRP'