Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1875-10-08

tion4 bank paper Is the provision Tor the re-
sumption Of specie payments, for which ma
tonaI banking associations, as well as the
United States Treasury, must now commence
Ia nrovide. AItogether this provision of the
new sct cannot fail to meet with popular ap-
proval.
The second provision Of this section of the
act REQUIRES the Secretary Of the Treasury TO
issue eighty thousand dollars OF the legal
tender United States notes for every eDe nun
dred thousand dollars Of national bank notes
that may be called for and Issued, until the
circulation Of the United States legsl-tender
note is reduced to $500, 900 900, or until the
reduction amounts to $50, ,009 200, that being
the amount IN circulation over the three hun
dred million limit.
1t Is asked why the redemption Of United
States legal tenders is not equal to the issue OF
national bank notes. Well, there is no valid
reason why that was not q provision of the
bill. The twenty per cent. margin is simply
a compromise, and it has apparently given
pretty general satisfaction. But the twenty
per cent increase on eightv-tHo million dollars
while it seems to satisfy iniationists, cannot
perceptibly affect our industrial interests in
ore way or another. The item is too
Insignificant for that, and any alarm on that
score is based merely on imaginary results.
In this connection an objection is made to the
bill on the ground that it does not prevent
reissue of the United States legal tenders called
in on the issue of national bank notes. This
was Senator Schurz's objection TO the bill,
though, after his speech against the bill, he
very sensibly veted for its adoption. The
Democratic, and so-cslled ''independent," /"
press have Joined chorus in the cry against
the bill on this point. But we confess TO the
conviction that this grows out of pure opposi-
ton simply for the purpose of opposition; and
If it proves anything it is that the provisions Of
the bill are not in any way susceptible OF serious
objection. The very fact that the bill provides
for the redemption and does not authorize the
reissue of these eighty-tWo million Of legal
tenders, is in itself law against their reissue.
They are retired by law, and they cannot be
put in circulation except by act of Congress,
any more than a new issue of bonds or legal
tenders could be made without legislative sane
ton. Let the Secretary of the Treasury at
tempt the reissue of those legally retired notes,
and the question of authority would soon be
decided. The argument is too absurd to be
entertained, and is not thought of except as a
feeble objection by the opponents of the meas
ure.
The third feature of this section of the act Is
the provision for the resumption of specie pay
ments by the United States Treasury on the
first of January, 1S79-four years hence.
Against this it is argued that the time is too
far of, and occasionally that it is too near. We
see specie payments at an earlier day; but we
do not believe It could be safely attempted
without seriously disarrangng our business
and Industrial interests by too precipitate
shrinkage of values. Gold is now at premium
of twelve cents on the dollar. If we could by
any effort put our paper currency and gold i'm
mediately on an equality, property, real and
personal, would suddenly depreciate or fall in
nominal value, causing distress, sacrifices, and,
| in many cases, bankruptcy. But by extending
the period for equalizing the values of gold and
currency over forty-eight months, an oppor-
| tunitySis afforded to all branches of business
and industry to prepare gradually for the fixed
| period of resumption. The four-year period is,
! therefore, an equitable arrangement, and the
| fact of fixing the time for resumption at a
given period is one ef the strongest points in
] the bill:
| The provisions of the bill to enable the
| United States Treasury to resume specie pay
Rept on the 1st of January, 1879, are simple
| and reasonably adequate. They are, first, to
\ use the surplus revenues in the Treasury,
usually from seventy-ive to one hundred and
twenty-five million dollars, principally gold;
and secondly, to dispose of the funding bonds,
bearing 5, AZ, and 4 per cent. From these
| two sources there win be ample funds, it is
reasonably believed, to meet the requirements
ofthe bill.
Two or three questions occur to the general
reader ON examining the provisions of the bill.
| First. If the eighty-two million dollars are not
all redeemed and the amount of legal tenders
| in circulation reduced to three hundred mil
lion, will the Secretary of the Treasury CON-
mence to redeem on the 1st of January, 1879
Yes, certainly, for general redemption is not
contingent upon the retirement of that sur
plus. 1t is connected with the provision of
| the act for free banking, which simply gives
| to banks permission to increase their national
bank circulation wherever they believe the
business of the locality demands such increase
Second. If the issue of United States legal
tenders should be reduced to three hundred
million dollars before the 1st of January, 1879
say in 1877 or 1873, will the Secretary of the
Treasury commence then to resume, if the con.
dition of the Treasury should justify him in SC
doingl No. There is no provision in the act
that would justify him in anticipating the day
specified for resumption. Third. Will the ma
tional banks be prepared to resume at the date
resumption by the United States Treasury i:
commenced! Yes, certainly; for whatever
amount of specie they may require can be OBJ
tanned from the Treasury for United States
legal tenders, which the national banks cal
obtain in exchange for their own bills. Ma
tional bank currency will appreciate in valuI
during the next four years in nearly the SAM
ratio as United States legal tenders. and Whel
! the United States legal tenders are redeemed
in gold the national back currency will haY
| appreciated to a gold basis.