The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-03

elusive OF over 81, oooO 900 OF fractiona CURRENCY
showing an increase Of SIS, 900, 900 since 1866
The currency is SO redundant that during the past
year, Notwithstanding the power to expand under
existing laws, there has been voluntary withdrawal
the circulation 70 the extent OF about $l5 900
In 1897 the Bank OF England began under authority
or Parliament TO issue excessive amounts Of notes.
which the London merchants agreed to receive at par
Even this could not prevent their depreciation In
1914 British gold bill' was passed, enactng that
'the taking OF gold coin at more than
us value bank notes at less shall
our own The notes remained below par for nineteen
years. At last the celebrated Bullion Committee"
was appointed by Parliament to investigate the calami-
tous condition OF British financial analrs lts man
conclusion that he country ought TO be brought
back with as much speed as Is compatible with wise
caution " the original principle OF cash payments Az
the option Of the holders OF bank notes. The follow
ing axioms were regarded as ncontrovertibly estao-
lished.-
'If gold is at premium in paper the paper Is redun-
dant and deprecated The premium measures tho de-
probation.
III the inferior currency be removed the exchanges
will be turned the overflow will STOP and any vacuum
is created gold will dow in to supply
"a better and worse currency cannot circulate
together The worse viii drive out the better"
In eight years aiterward the public had been in
structed by the logic Of events and with few exccp-
tions the truth OF the doctrines held BY he committee
universally admitted. Robert Peel himself-al-
though he had held the opinions Of the previous Par
lamentary majority and voted with it-became Of
the most distinguished advocates Of the committee
France, Austria, the United States and other
tries have had kindred bitter experience from the de-
probation OF their currency
There is great shrinkagc in business and impor.
tant revival can be expected until new financial sys
tenn which viii deserve and receive public confidence is
fairly begun. In proportion there rs cry for lna
ton, capital proverbally tmd seeks for safety, with
draws from enterprise, and refuses TO employ labor
Until the future financial policy Of the government IS
permanently settled there will be real revival OF tho
commercial and general prosperity Of tho country
The present time is the most opportune we have had
since imitation began for making vigorous preparation
for specie payments The premium gold
been reduced by commercial causes, apart
from egsation from ls5 = TO twelve or seventeen per
cent thus indicating that the remaining steps 10 gold az
par rate with gradually be safely rctraced,
by extraordinary amount OF craftsmanship provided
it sincere and peTseverng Since the began tho
circulating medium has increased three times fast
the population. In New York the accumulation OF
money and the low rate at which it may be had are
precedented Large expectations OF grain 70 Europe
from this side OF the ATLANTIC re expected, Our inn
Ports have e.ormca-iy shrunk The people them
selves more than usually free from debt; aud
last, but not least, is the encouraging fact
that their minds have been long and carefully
prepared by increasingly intelligent press never be-
fore sound and well informed on financial TOPICS TO
take than superficial views of the situation. II
the should authorize the purchase and can
collation. OF some moderate amount say 81 600 900 per
month the legal tender notes and authorize the Secre
tary OF the Treasury to sell five per cent bonds OF the
United states to provide funds for that object the first
great step would be taken toward resumption without
injury TO the financial aud business interests
OF the country propose that the rato
a 80. iusthaa Of contraction sne@M so gradual
that Congress can hsYA aHcuso Tor again intervening
| Rigid adherence to such course woulu luu~-- :. =
termination TO return TO sound basis The absence OF
the inferior currency would be gradually supplied by
the superior the problem to the method of resump-
ton would be solved and the system work itself out by
natural process while individuals and the banks
would have ample time to prepare for condition
OF affairs, Business being thus adjusted upon the
basis confidence would RETURN and with il prosperity
would soon prevail The act of January Ii, 1875,
should be modified n.conformty with this view Very
respectfully, ELIJAH WARD.