New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-10
THE OUTLOOK FOR RESUMPTION.

THE OUTLOOK FOR RESUMPTION.
The United States fiscal year closes with the
current month, and forty-twO months more
will bring us to Jan. ], 1879, the time ap-
pointed for the resumption of specie payments
Let us see what progress, If any, has been
made towards such condition of our finances
and currency as will render it possible to keep
the solemn "pledge" made by Congress to re-
sumo in 1870.
l. On July I, 1874, the outstanding legal
tender circulation was $3.50, 100000, from
which we deduct $14, 800 900 for paper money
in the Treasury, leaving 1857, 100000 as the
net circulation. On July l, 1875, the out
standing legal tender will be about $376,OOO,-
600. and the currency balance perhaps
"a DOC. 600. leaving 1912, 100000 as the net
circulation Thus VIC see that so far as the
volume of its legal tender notes is concerned,
the Treasury will be in no better condition for
resumptiOn than it was eleven months ago.
II. In regard to National bank notes. the
amount outstanding will differ very little from
the total year ago, but there are now nearly
fifteen million dollars more of legal tender
notes on deposit with the Treasurer OF the
United States for the purpose of retiring clrcu-
lation. The Government Is pledged to pay the
notes of the banks in legal tender money,
which. in the event of resumption, will be com
or its equivalent, and the effect of its guarantee
will be that the posscssOr of given sum III
bank notes will have the same power OF draw
ing gold from the National Treasury as the
owner of an equal sum in greenbacks.
iii. Putting the legal tender notes and bank
notes together and deducting from the aggre-
cate the currency balance in the treasury
and the legal tenders held by the Treasurer
for retiring bank notes. we have as the final
result direct and contingent obligation rest
ing on the Government to pay in gold some
ten millions less of paper money than IL
was responsible for year ago, being de-
crease of nearly one and a haD per cent. Inc
difference is too insignificant to be taken into
serious consideration.
". Undoubtedly the cash reserves and other
resources and liabilities of the banks are an
important element in such calculation as this,
but we are unable from the published returns
TO discover that any progress has been made
by the banks which makes them better tit to
do business on a gold basis than they were a
year ago.
V. The United States, carrying on an eXteIi-
sive trade with foreign countries, both In prod
nee and manufactures and the various kinds
of stocks, bonds and debts, are called on Oc-
casionaly to export large sums III gold,
amounting in some years to more than the
whole production of the mines. Hence arises
the necessity for specie i'll order to maintain
payments in specie. The drawers OF bills OF
exchange on London are now paying seventeen
per cent premium for gold coin to export.
After 1879, suppOsing the resumption OF
specie payments to take place according to the
promise and to be no sham, gold coin must at
all times be available without the payment OF
a premium. What are we doing toward get
ding together such quantity of gold coin or
bullion as to make us secure against such
"drain" of gold as that which is now in pro-
gress, in spite Of the seventeen per cent pre-
MUM On July /, 1874. the Treasury opened
with sol 100000 in gold and silver coin
and bullion, and there were go, 100000
on deposit with it belonging to banks
and private citizens. On July 1, 1879, the
Treasury will probably have less gold by sew
eral millions than it had at the beginning of
the fiscal year, and the banks and private cit
liens will also have less on deposit with 1t.
1t must also be considered that during the
year the Treasury has bought a schooner load
of silver to coin into tokens" which tokens
will not be available for the payment of green
backs and bank notes, and will not be legal
tender for any debt of more than five dollars.
If we deduct from the coin balance reported
in the last Debt statement twenty mil
lions for the deposits of the banks and
private citizens left with the Treasury
for security and convenience, twenty millions
more for the bonds now being redeemed for
the Sinking Fund, and five millions more for
the silver bullion and tokens, we shall have
remaining thiry-nine millions, to which we
may add, say, six millions for the receipts this
month in excess of the ordinary current pay
ments This gives about six millions less of
gold coin and bullion than the Treasury had
on July /, 1874. The calculation is not pre-
scented IA anything more than rough approx
imation, but it is sufficient to show that so far
as concerns the possession of specie the Urea
sury and the banks will find themselves on
the 1st of july next not so well prepared for
keeping the pledge OF resumption as they
were a year ago.
The French Government and the Bank OF
France are pledged to resume specie payments
JAM !, 1878, and by way of preparation they
have contracted their paper money 81 100000
and increased their specie $4,000, 900,
which looks as if their pledge meant some
thing.
. PEACE N NEU-H1MPSHfRE.