The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-08-08

aud totally destroyed its marketable value.
1t is impossible that these evils should not
react upon the prosperity of the whole
country.
The nobler motives of humanity concur
with the material interests of all in re-
quiring that every obstacle be removed to
a complete and durable reconciliation be-
tween kindred populations once unnaturallv
estranged, on the basis recognized by the
st. Louis platform, of the Constitution of
the United States, with its amendments,
universally accepted as a final settlement
OF the controversies which engendered
civil war"
But, in aid Of a result so benefcent, the
moral INFLUENCE of every good citizen, as
well as every governmental authority,
ought to be exerted, not alone to maintain
their just equality before the law, but like
wise to establish a cordial fraternity and
good will among citizens, whatever their race
or color, who are now united in one destiny
OF common self. government. 1.-THE duty
shall be assigned to me, should not fail
to exercise the powers with which the
laws and the constitution of our country
clothe Its chief magistrate, to protect all
its citizens, whatever their former coudi-
ton, In eyer7 political and personal right.
CURRENCY REFORM.
Reform is necessary" declares the St.
Louis convention, ito establish sound
currency, restore the public credit and
maintain the national honor" and it goes
on to demand judicious system of prep
aration by public economies, by official re-
trenchments and by wise finance, which
shall enable the nation soon to assure the
whole world of its perfect ability and its
perfect readiness to meet any of its prom
ises at the call of the creditor entitled to
payment"
The object demanded by the convention
is resumption of specie payments on the
legal-tender notes of the United States.
That would not only restore the public
credit and maintain the national honor, ="
but 1t would establish a sound currency"
for the people,
The methods by which this object is to
be pursued, and the means by which it is
to be attained, are disclosed by what the
convention demanded for the future, and
by what it denounced in the past.
BANK NOTE RESUMPTION.
Resumption of specie payments by the
government Of the United States on its
legaltender notes would establish specie
payments by all the banks on all their
notes. The official statement, made on
the 18th OF May, shows that the amount
OF the bank notes was 800 millions, less 20
millions held by themselves. Against
these $50 millions of notes the banks held
l4l millions of legal-tender notes, or a
little more than SO per cent. of their
amount. But they also held on deposit in
the Federal Treasury, as security for these
notes, bonds Of the United States worth
in gold about $50 millions, available and
current in all the foreign money markets.
Ia resuming, the banks, even if it were
possible for all their notes to be presented
for payment, would have 500 millions of
specie funds to pay $50 millions of notes,
without contracting their loans to their
customers or calling on any private debtor
for payment, Suspended banks under
taking to resume have usually been obliged
to collect from needy borrowers the means
to redeem excessive issues and to provide
reserves. A vague idea of distress is,
therefore, often associated with the pro-
cess of resumption. But the conditions
which caused distress in those former in-
stances do not now exist.
The government has only TO make good
its own promises, and the banks can take
care of themselves without distressing any.
body. The government is, therefore, the
sole delinquent.
LEGAL-TENDER RESUMPTION.
The amount of the legal.tender notes of
the United States now outstanding is less
than 80 millions of dollars, besides 81
millions of dollars of fractional currency.
How shall the government make these
notes at all times as good as specie?
1t has to provide, in reference to the
mass which would be kept in use by the
wants OF business, central reservoir of
coin, adequate to the adjustment of the
temporary fluctuations of international
balances, and as guarantee against
transient drains artificially created by panic
Or by speculation.
1t las also to provide for the payment
IN coin of such fractional currency as NAV
be presented for redemption, and such in.
considerable portions of the legal tenders
as individuals may, from time to time,
desire to convert for special use or in or.
der to lay by in coin their little stores of
money.
RESUMPTION NOT DIFFICULT.
10 make the coin now in the treasury
available for the objects Of this reserve, to
gradually strengthen and enlarge that re-
serve, and to provide for such other ex
ceptlonal demands for coin as may arise.
does not seem to me work of difficulty,
1t wisely planned and discreetly pursued
1t ought not to cost any sacrifice to the
business OF the country. 1t should tend.
on the contrary, to q revival of hope and
confidence. The coin in the treasury on
the Both of June, including what is held
against coin certificates, amounted TO
nearly "A millions. The current of precious
metals which has flowed out of our coup.
try for the eleven years from July |, 1865,
to June 80, 1876, averaging nearly rs
millions year, was S32 millions in the
whole period, of which 6l7 millions we're
the product of our own mines
To amass the requisite quantity. bv in
tercepting from the current flowing out of
the country, and by acquiring from the
stocks which exist abroad without dis.
turbing the equilibrium CT foreign money
markets, is result to be easily worked out
by practical knowledge and Judgment
With respect to whatever surplus OF
legal tenders the wants of business may
iall to keep in use, and which, in order to
save interest, will be returned for redemp-
ton, they can either be paid or they can
be funded. Whether they continue as
currency, or be absorbed into the vast
mass OF securities held as investments, is
merely question of the rate of interest
they draw. Even it they were to remain
in their present form, and the government
were to agree to pay on them rate of in
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