New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-09-25

understood, and his views might be misunderstood
On one point he would be explicit The next
Congress, If Republican, could settle the question
of resumption. The act Of 1873 would carry
the country to specie payments. Mr.. Spauidlng
then turned to the act and read its provisions aloud
"This sct, y he said, "confers immense power upon
the Seoretary-immense power. He is authorized 10
ISSUE SELL and dispose Of, at not less than par, III
con three classes Of bonds including the 4lo bonds.
1t is immense powerD Mr. Spaulding then turned
to the preface of tho second edition OF his book,
issued last December, and said that the following
passage indicated his views more clearly than ne
could state them:
"AIl the necessary per cent gold bonds which
can be disposed Of at par for coin are authorized by
the act of 1875. and placed at the disposal OF the
Secretary These bonds are now at par and
above, and IL they continue so to Jan. l. 1879, the
Secretary viii have ample provision for redeeming
the greenbacks in gold coin at that time. II gold
coin is paid out for greenbacks, the gold will take
the place of greenbacks in the banking and business
operations of the country, so that there
will be only such contraction as is
necessary to the stability Of legitimate
business, II suitable gold reserve is retained in
tho Treasury against the geenbacks in circulation
there win be no loss of interest because neither the
gold nor the greenbacks bear any interest.
The Treasury must be well supplied with gold, and
an ample yearly revenue provided, in order to re-
sumo and maintain such resumption. III the reserve
Of gold is made ample, resumption VIII be easy.
The greenbacks not having been issued upon com
mercial values, but for the waste OF war; Will re-
quire extraordinary support in order to main
tain specie payments. AT present there Is TOO
great disparity between the reserve OF gold
in the Treasury and the amount of greenbacks to be
redeemed. Whether resumption takes place in three,
five, ten years, larger reserve of gold Will be
necessary or the greenbacks must be reduced 1t Is
perfectly plain to every practical business man that
the greenback currency cannot be redeemed in coin
until the Government is able to lot coin flow
into business channels and again circulate as
money. the same as it did previous to the
war. Coined money must resume its place
in the business of the county simultaneously
with the withdrawal Of the greenbacks, so that
there shall be no material disturbance to legitimate
business when resumption takes place. This can be
accomplished if there is a continued surplus OF gold
received into the Treasury and retained there as
reserve against the greenback currency. Every one
hundred dollars set apart as reserve against an
equal amount Of greenbacks, would be practical
payment Of them, aud AZ neither bears interest,"
there would be no loss of interest. Every gold
broker knows perfectly well that there can be no
successful resumption until there is much larger
reserve Of CON- and he accordingly asks 81 cents
in gTeenbacks for a dollar in gold, but let him know
that the Government holds an adequate reserve
fund against the greenback currency, and the Ma
tional banks like fund, the appreciation of green
backs would be such that his occupation as gold
broker would be nearly gone, even If the gold did
not pass out of the Treasury. This large reserve
would be tangible evidence to him that the Govern
ment was master Of the situation. The wit
of man. during the last hundred years, has not been
able 10 contrive any method by which paper cur
rency can be circulated on par with gold unless II
can DO conveniently converted into gold coin
ON demand. It is not enough that the
whole property Of the country Is held
liable TO ultimately pay the greonbaeks.
Such security, though ample, is too general and
intangible for the purpose. This whole property can
only be reached and applied through the slow pro-
cess of taxation On this general theory the green
backs have been greatly deprecated for over II
years and the Government will continue in this dis
creditable condition until specific provision is
again made for redemption
The citizens Of Buffalo cannot do n wiser thing
than 70 a,nd this veteran fnancier 20 Washington.
Who will have reader wit To restore the child to Its
golden heritage than the Father of the Greenback