New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-31

and 1879. During the current year $5.OOO,OOO
moro are to be paid. and at the beginning OF
1873, when specie payments will be resumed,
the Governments debt to the Blink will be
only SEC. 100000.
From tho foregoing explanation OF the ar
rangements between the Government and the
Bank it will be seen that the 1856, 100000 Of
notes which represent the loan to tho Govern
ment correspond to tho $377,OOO,OOO OF
grcenbacks issued directly by the United
States The one per cent paid to the Bank Is
no more than fair equivalent for the use OF
the Banks credit and the cost of manufactur-
ing the notes. It will also be seen that the
reduction of $lO1,OO0,000 in the Gov
ernment's indebtedness to the Bank since
October 81, 1873, was precisely equivalent
in its effects to contraction OF
the paper money in circulation. In point
of fact the actual contraction of the paper money
has been 1926, 100000, tho difference being
the effect of the ordinary banking operations.
Not satisfied with the great addition already
made to its financial strength, the Bank now
insists on the further repayment of $95,OOO,-
600 before resuming the payment OF all its
obligations in specie on demand on January J.,
1873.
There il enc great difference between the
problem Of resumption as presented to the
people of the United States and the shape II
assumes in France. Our currency, rs meas
ured by the market price of gold, Is worth
only sc cents to the dollar, while the notes OF
the Bank Of France are worth par in CON- We
have before us the by no means insignificant
task of raising the value of our paper money
to par in gold, and when we have done that
the work Of reforming the currency is but par
tally accomplished. A sound convertible cur
rency we have never had i'm the United States.
BY sound paper currency, convertible into
specie, We mean one that can stand cOnsidera-
BILE shock to credit without at once becoming
inconvertbe and deprecated, as happened to
our circulation of bank notes in 1887, 1889,
and 1857. If the larger part of the paper
money is to be issued directly by the United
States, as at present, 1t IL clear that very
large reserve of specie must he accumulated In
the Treasury, and constantly kept there after
resumption, as a provision against foreign
drains and internal panics The requisites to
resumption under our present system are Q)
the restoration of the grcenback to its par
value in coin, and (2) the accumulation OF
stock of specie sufficient under all
ordinary contingencies to maintain con-
vertibility. There is no great difficulty in the
way of reaching either or both these ends
none which cannot be surrounded without dis
aster to the material interests of the country.
The three great civilized nations which are
not more or less infected with the evils OF i'll
convertible paper are England France, and
Germany, and all of them are provided with
ample stores of specie, and make it their
prime object to maintain such reserves, re-
gardless of expense. 1t is shame that the
United States, ranking in commerce, wealth,
and intelligence with these nations, should BIO
content with a gamblers currency stamped
| with a living promise.