The New York herald., 1875-02-13

hands. the average amounr OF oank stock owned
value OF $4,000. The only class OF debtors whose
instincts therefore. naturally prompt them To op-
pose contraction are what may properly be termed
"bloated Debtors" or those who. Dy reason OF
large property nave claimed and OBTAINED large
credits and have used those credits, or. what 10
count oflegitmate enterprises, butin the majority
OF cases Tor the lurtherance OF ilegitmate specu-
latons whose existence and matntanance have
worked % the discouragement OF honest produc-
tive industry.
RESUMPTION BY THE BOARDING OF GOLD. IF
PRACTICABLE MOST UNDESIRABLE.
The proposition 10 effect resumption by accumu.
latlng stock OF gold In the Treasury lin lieu OF
or without any contraction OF the volume OF legal
tender), the same TO be efYected either by the
sale OF bonds or by boarding, seems 70 me utterly
gold In the financial and commercial world Is very
analogous to It's distribution IN the physical world
1t is everywhere present though not in any large
quantity In any one location. There are probably
as much as ten thousand millions Of gold coin and
bullion in general circulation. There are probably
not over seven hundred millions in the posse ssiun
and keeping oil all the great banks OF Europe.
OFFER sufficient inducement and gold will grad
ualiy now In from the worlds reservoirs in quau.
tity suf1cient TO supply the demands oil any
locality lor circulation. ornament or mechan-
where In the soil Will tricke down and accumulate
INTO wells or csterns eXcavated below the general
quickly by ARTIFICIAL or spasmodlc efforts IN
given LOCALITY would, however, be analogous and
attended with results similar TO the attempt TO
draw water IN quantity from the soil directly.
even though the most powerful pumping engines
were employed Tor rne purpose. The gold and the
water alike exist IN abunoance, bus tho quantity
of either likely TO oe obtained by endeavoring TO
make them how in ACCORDANCE with other Than
natural laws VIII be uncertain and unsatis-
iac'ory. The amount OF gold which some OF the
best recognized authorities have estimated must
be in the possession ot the country, IN order to
make resumption success, and irrespective OF
any contraction has oeen placed at as htgh
figure as $780, 100000; thereby necessltatng an
absorption from other countries OF from $780, 0O0 900
to $780, QUO, ,000 IN addition TO the STOCK on hand
But the tempt 10 take at once, anu as the re-
HAnr AF
gold much as even $780, 000. 900 wolld certainly
be resisted by all the great European financial
effected at all, could only by Offering United
States bonds on such terms as to constitute eX-
Neither Is The prospect OF our being able to retain
IN the country any considerable portion OF our
more promising. II the conditions OF our foreign
exchanges were sucn tnat gold was required 70 be
sent abroad-a conditon OF things periodically
certain to occur--lt would either GO or our whole
commercial system would be subject 10 such II
ucgree OF disturbance that the boarding policy
would be speedily abandoned ana the country at
once set back into more lnextrca6le slough OF
irrcdeemability than ever.
But supposing the desired amount OF gold to be
once acquired by the Treasury, 10 open then the
doors and commence resumption. us 1t IS pro-
posed, on ixed day, without preliminary, ade.
simply interchange gold ior notes unt the Treas
ury STOCK OF gold was exhausted or The market
value OF gold and greenbackS hau become equal
lZed. The result would be contraction, but con-
traction SO instantaneous and painful AS to induce
~
terchanee was maintained sufficiently long TO pro-
duce equalization, would leave the Treasury and
eoe would o hav us
disturbance. But the probabilities are that,
smartlng with pain the Who'll business interests
OF the country would insist on instantaneous tenn
porary relief by the reissue OF the redeemed
greenbacks, in which case no results beyond dis
lurbance would nave been elected
WHAT Is MEANT BY GROWING UP TO SPECIE PAY
MENTS.
TIE talk about the country growing up to specie
eXtanuInU n.
nltely curing which process OF contraction Is to
be made operative; Tor the only way IN which the
country can grow up to specie payments Is by
diminishing the ratio which the present volume Of
currency holds to population and business by IN
creaslng population and business. 1t Is also to be
remembered that as communities become more
highly civilized and as populltion increases the
tendency is 10 employ less rather rnan more cur
rency and effect exchanges through the agency
OF banks, clearing houses cnecks, bills OF eX.
change and other negotiable instruments, and
that the same effect results from an increase in
the rapidity OF lnterc0mmunication ana tranSpor-
tation. With the volume OF currency remaining
fixed and exclusively local IN its circulation all
sucn suost,tuuons Tor tue use Of currency are,
therefore. equivalent 10 expansion, and go very
lar to neutralize any contraction resulting
add to which the elements OF uncertainty whether
Congress- as long as the currency IL irredeemaoe,
Will, under the varying pressure OF political Or
financial circumstances, allow It's volume to
main ior any heightened term OF years unchange-
Boutwell, or Richardson may fnd their way into
the Treasury, and he must be Or O decidedly san.
RuHe anu uOpSlul tcuipcIu uuleuC WuO Will expect u
restoration OF the specie standard by the growing
,uryo un = ''''' '''''' '' ''N " 'A' p''''"' 'eA
SPECIE RESUMPTION A MILITARY NECESSITY
1t Is an exceedingly curious circumstance. con-
siderinV the extent TO winch the necessity ol being
prepared for war IS made the oasis Ior so much OF
our fiscal legislation ana the reason Tor so large
proportion OF our annual expenditures, that he
specie resumption seems to have almost
entirely overlooked one o The most vital points
hands Of the people In order TO enable US as ma
ton TO carry on future war. foreien or domestic,
offensive or defensive. IN any degree successfully.
Looking backward we ind that the country 0r
one-sixth part oil the entire period OF its national
existence mas been In state OF war, and Tor the
luture there Is no good reason Tor supposlng that
we are to be any more eXempt irOm the vicissl-
But what Is our financial condltion2 Tue country
exhausted OF specie! the Treasury weakeucd TO
such an extent that on the 1st OF January ast the
amount OF gold In Its possession w3s reported to
be only about 100000 In excess OF its gold liable
ties. Nearly one-nal of the presen annual sold
supply OF the world Is the product OF the United
States. but we are playing the part OF the prodl-
gal, spending our means III rotous living and
driving the golden stream away rom our
borders 70 foreign lands, the people OF whch,
just us alive to their interests where The dollar
Is concerned as Is the universal Yankee natlon,"
so Thoroughly satisfied 10y long experience or the
value OF specie as q basis or eTectlng exchanges
aud equatlng values-ihat they gladly take pay lor
and keep al, tnat we can send them. With d cur.
rency based on gold, even approXlma ceiy, ana a
credit not unduy tampercd with, q mass OF de-
lerreu PROMISES 10 pay -lrreuecmaDie u iper-Cal
be fl0aed Win varying degrees Duoyancy, as has
been done III the United States since 1861; but to
float irredcemaDlllty on lrredeemability ior the
purpose OF Providing the government with means
to deray new war expenditures would be an alb
surdity. The hrst issue hundred millions OF
additional legal tender Tor any sucn purpose-nay
more, the mere granting by Congress OF ,he per-
mission to lsSue-woud at once prOstrate our
wnOlc currency structure; would advance gold to
an excessive premium. and stlmulaue every credl.
tor to demand Immediate payment for all over.
due 0bgail0ns, for fear less q few days aelay
would put IL in the power OF every debtor 10
satisfy MS debts by the tender OF tnat which had
practically no value. Were tnc country, there
lore, under existing circumstances, to drift into
var with Power so weak cveu as Span, the first
necessity oil the government would DC To reaie n
new currency. But what new currency could be
created? Clearly nothing but gold currency or
currency based Oil redeemabiIty IN gold on de-
mand; lof the people would taSe no more like the
old issues except at such depreciation as JO COM
pei the government to pay two or three prices Tor
everything that lt needed. But to call exist
ence at such time gold curreucy to I'LL up the
specie vacuum In this country when We are now
every day creating, by any sudden and
eXces siye demand Tor pOid, would he exceedingly