, 1875-03-07
SUGGESTIONS ON RESUMPTION.

| SUGGESTIONS 0N RESUMPTION.
The New York Graphic publishes long in
terview with Sir Francis HINGES, e1-Ministe
| Of Finance Of Canada, in which Sir FRANCE
suggests scheme for resumption somowha
t like that Of Senator SUMNER and Mr. CANA
1IEn BRADFORD, and yet with touch of nov
city which makes it worth reproduction.
This plan involves the issue of about $780,.
000, 900 of notes, redeemab1e in gold On de-
| mand at New York, and receivable for Gus,
TOMS From ten to twenty millions Of these
would be issued each month and sold for
greenbacks to the highest bidder. The Treas
ury would hold reserve for the redemption
Of the new bills, consisting Of so per cent Of
their face-value in gold and SO per cent in
Government 5 per cents. The gold reserve
would probably be sufficient to meet all de-
mands for redemption; but, in case of need,
the bonds could be sold and their proceeds
used in the same way. When 500, 1000, 900
Of the coin notes had been issued, the green
back circulation would have been cut down
about $4,000, GOO, and the legal tenders
would, he thinks, probably then be at par.
The National Banks would then be deprived
Of their privilege Of issuing notes, getting
some compensation therefor, and all the
paper aaoat would be issued directly by the
Government The English joint-stock banks,
which issue no notes, declare annual divi-
dends up to 90 per cent, SO that it is evident
that bank doing business only with its
capital and deposits would pay.
The similarity between this plan and those
Of Messrs. BRADFORD and SUMNER stops with
the suggestion about the National Banks. It's
goodness stops there too. There are minor
differences before that point is reached. Sir
FAxc1s would have notes redeemable on de-
mand issued Mr. BRADFORD would have
them redeeuable two years from the date Of
their issue. The latter plan is the better, be-
cause it would not be necessary then to accu-
mu1ate at once by added taxation great sum
of gold in the Treasury.
The best, and by far the SIMPLEST plan,
however, would be to issue i per, cent gold
bonds, running thirty or forty years, and au-
thorize the holders Of greenbacks to convert
them into such bond. The greenbecks
would then gradually disappear, and private
capital would shoulder the burden and re-
sponsibility Of resumption, as it should do
It would never be necessary to gather great
heap Of it in the Treasury, because these bonds
would form part of the National debt, and
be gradually discharged, as the rest Of the
debt is. If it were too difficult to pay them
by taxation thirty years hence, they could be
refunded for thirty years longer.
We regard Sir FRANCIS suggestion as un-
3ualifedly bad There should be an abso-
ute divorce between Government and paper
money. # the circulating medium is under !
Government control, two great evils are In |
In the first place, it viii be neces-
ary for the Treasury to keep On hand vast |
eserve Of specie, which will be SO much |
lead capital withdrawn from productive en-
'loyment, and necessitating heavy taxation.
This involves an entirely useless demand |
lpon the popular purse. The second and
he greater objection is, that every
congress would be importuned to med
lie with the currency. 4 shifting
'ody, exposed to numberless temptations |
nd selected without reference to financial
bility, is unfit to be trusted with such
harge. There would be continual tinke1ine |
nth the currency, as there is now with
he tariff. Government should fund every
in gold bonds, and leave the Ma
ona1 Banks, under the Free Banking law, to
upp1y the country with all the currency it
eeded. We should then have q paper cur
ancy Of uniform value, convertible into coin
n demand, without trouble to the Govern-
lent or loss to the reonle