The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-08-12
From the Chicago Tribune, August 5th.I
Isesuming Specie Payments.

There Is Wlue diversity Oi oplu'on aulohS
many intelligent persons who ftyor 1t as 10
the plan of rcsuming specie-poyments'
Many able articles over various signatures
have been published in the Tribune, but
there is fatal error, in our judgment, in all
of tb"m. 1t lies at the foundation OF the
system Of governmental paper money, aud
cannot be cured by any patent process.
One of these writer's, i'll yesterdays lra'
G,ule, replying to the suggestion OF Others
insists that as preparatory measure for
specie resumption it is essential shat the
Government should accumulate large guam
titles OF baIllon, and refers 10 the Bank OF
France, which belongs 10 private stockhold-
era. and which has now 0,000, 900 gold in
its vaults and 500 100000 Of notes outstand.
inc. In this way, it is argued, the bank will
GRADUALLY reach i specie basis. When suf-
ticient gold has thus been obtained, our
CORES pondent cllims. the Government Will
he in condition TO resume. Ii
this means that the Government would
then be in condition to redeem
its currency and retire il, we admit the
fact: but if it means that the Government
will then be in condition to maintain spc-
| cin.paymenIS, and reissue its uOIcS and keep
| them afloat, then the assumption Is not a
correct one. The Bank Of France or any
bank having the real capital. may begin spe-
| Gle. payment and maintain it without diff
Guilty. But tie Government has no capital.
| 1t has none OF the facilities for getting its
notes back into circulation that banks have.
| 1t has no income from its business, and, uG-
like the bank, has 40 profits. lis function as
banker is merely TO issue notes, without
any money to redeem them with. The bank.
as fast as its notes are redeemed, lends them
out again at interest. 1t receives deposits,
which it uses as if its own money, and by
loans and discounts OF its capital, notes, and
deposits earns money, which strengthens its
means of doing business. The Government
Of the United States, on the contrary, has
no capital. 1t has nothing on which to draw
TO pay its grrenbacks. Us only income
is the proceeds OF taxation, and no one
proposes to raise gold by taxation to
redeem the greenbacks. 1t can only
accumulate gold by increasing taxation or by
the sale of bonds, aud to this the country
ought never to submit. But assuming that
the gold was accumulated in sufficient guam
tity to warrant The redemption of the green
hacks, bow Is the Government to get the
greenbacks back into circulation? The only
process that is practicable is that of buying
bonds with them and when the bonds are
|
into circulation, and are presented for re.
demptiop, then TO get The gold TO redeem
them the bonds must be sold again. 1t is
only by a See.SaW operation Of this kind that
| the Government can ever float paper cur:
reucy at par, and each time the operation is
repeated it must he at henvy loss. This
proposition is too plain to require argument,
for it will get less for It's bonds as seller than
| it must give as purchaser.
There is, therefore, but one way in which the
Government can get back to specie. payments
| without loss or any disturbance of business,
gradually but certainly. The Government
of the United States has but limited runc-
! ton in the matter of finance. Ordinarily its
duty is to levy and collect revenue equal to
Of the year it ought not TO owe anything
and have no surplus save such as may be in
cidental to al excess OF revenue over the
estimated receipts. When, however, extra
ordinary expenditures occur which bad not
been foreseen, or sudden emergencies create
the necessity for large ana unanticipated
outlay exceeding the currentrevenue, a debts
created which has to be provided for BY loan;
or, as in the case of the late war, where The
eXigencies OF the country denim an
expenditure SO far exceeding the ca
pacity OF the country to meet it by ordi-
nary taxation that the loan has to be made on
long time and for large amounts, and perhaps
upon unfayorable terms. There is but one
way In which this debt, be it large or small,
can be paid, aud that is by the proceeds OF
taxation. II the debt be small, its payment
eau be distributed over few years. If large
deot, 1t Will take longer time. When
lawful demand is made on the Treasury for
payment the Government must honestly
either pay the same or giyea time.note bearing
Interest. Under the law of every commercial
nation al! evidences Of debt bear interest after