New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-03-15
THE CHEAP MONEY CHASE.


sibe to resume specie payments I'D 1872 or
even to make that resumption lastlDg we
do say, however, that to restore and maintain
the gold standard some preparation must be
made, and that the time allotted for such
preparation is none too great. Let us suppose,
for the sake of finding out. what preparaton
Is necessary. the 1st of January, 1879, to be
now at hand, We may on that hypothesis
ascertain what obstacles we have to surmOunt
in the period of forty-iive months which actu-
ally separates,us from the time of promise.
We have now, in round numbers, S2O,0O0000
in gold certificates, $40,OOO0OO in fractional
currency, s3sOOOO,OO0 in legal-tender notes,
and 100000 in National bank notes. in all
S77O, 600 in paper representatives OF money.
We have $77O00,000 of gold and silver in the
vaults of the banks and Treasury with which
to keep this mass of paper substitutes for coin
permanently equal in value to con Could
we do it7 Is there not too much paper and
too little gOldf
If resumption were proclaimed tomorrow
the experiment would be exposed to two
formidable perils. Between boarding and ex-
porting the coin would rapidly disappear. We
are q nation of fOrty-five million inhabitants,
including a large admixture of foreigners and
ignorant persons Of all races. 1t is certain
that great numbers of these classes would
have firmer faith in solid gold and silver
than in the handiwork of the Bureau of En-
craving and Printing Thousands and tens of
thousands of such persons would instantly be-
gin to hoard coin. it is to this day the in
veterate habit of the rural population of
France to hoard the precious metals-a habit
which doubtless has been strengthened by the
disastrous operation of Laws interc0nvertible
currency scheme and the explosion of the
assignats, which represented the most secure
"of all possessions, the land on which we
"tread" but nevertheless came to be worth
no more than their market price as old paper.
It has been estimated that One-half the metal
lie money of France, which is computed at
the enormous sum of one thousand million
dollars, is constantly absorbed in private
boards. To what extent under the circum-
stances we have supposed, coin would be
boarded in this country it is impossible to
guess but there can be no doubt that large
amount of gold and silver would gradually
disappear. coincidence" said Lord Chatham,
els plant of slow growth in an aged BOSOM"
Confidence in paper money will be long in
spreading itself from top to bottom through
every class, race, and color of the people of
the United States.
The second peril to which the convertibility
of our paper would be exposed would arise
from the tendency of our specie to flow out
of the country. The holders of the S77O,OOO,OOO
of paper mentioned above, and also the own
ers of twice as large a sum deposited with
banks bankers, and savings banks, would
Immediately become vested with the power to
demand gold, nor could they be denied with
out at least a partial suspension OF specie pay
ments The effect of annihiating the gold
Dremium would for the time being have nearly
as great an influence on the balance of pay
ments between the United States and the rest
of the commercial world as the abolition of
the tariff. IL would add fifteen per cent to
the cost of our exportable articles to the
foreigner. and take off thirteen per cent from
the cost OF foreign goods to our importers
nor 10 it likely that an equilibrium could be
restored without prOtracted drain of specie.
At the most moderate calculation We think 1t
would not be safe for the Treasury to under
take resumption with the currency at its pres
ent volume with less than two hundred and
fifty millions in gold and silver.
Mr.. Tooke the eminent antagonist of that
party known in England "a the bullionists,"
and the inhexibe opponent OF the restrictions