The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1876-03-30
THE PAYNE BILL.
A View of it From q Republican
Source.

From The Cincinnati Gdzette,
We are curious to know what objection
the soh-eyed men, or the rag-money men,
or the inAationists, have to the PROPOSE
ton adopted DO the Democratic caucus
known as the Payne compromise. Per-
haps the Enquirer will favor us with light
on the subject. 1t is violently opposed to
the plan, and of course it can state its
reasons,
AS we read it, the plan is not resump-
ton measure; it is not for contraction,
but does provide for initiation. 1t pro-
vides that the government shall lay aside
annually, in gold, 8 per cent. of the green
back circulation; and that the national
banks shall lock up, in gold, equal to 3 per
cent. of their circulation. The present
greenbatk k circulation is three hundred
and seventy millions, and national bank
circulation is three hundred and fifty mil
lions. Three per cent. would foot up as
follows:
On greenbaCks, ,....,.......'Sll,l ,lO0, wy
On national bank notes, ,.., 1l,5O0,OOO
Total. .................$2 .$22, 100000
Thisis the amount of gold that would
be laid aside annually. 1t is proposed
that this accumulation shall 60 on until
the amount reaches 80 per cent. of the
volume of paper money, which would be
two hundred and sixteen million dollars.
To accumulate this amount of gold at 8
per cent. rate would require little over
nine years, or say the lst Of July, 1855.
But the plan does not say paper money
shall be redeemed in gold at that time, it
merely provides that thereafter the
amount of gold in the treasury and in the
banks shall never be less than 80 per
cent. of the circulation. 1t assumes that
with two hundred and sixteen millions
of gold locked up, and seven hundred
and twenty millions Of paper money
aAoat, paper money would be equal to
coin in value, and resumption would fol-
low as matter of course. This is proba-
bly, the point the rag money party objects
to. If so, they are unreasonable, be-
cause the plan would not bring specie
payments in 1885.
The plan also proposes the repeal OF
the clause in the resumption act proyld-
ing for specie payments on the lst of jan
uary, 1879. This is well enough, because
that clause proposes to resume without
anything to resume with. 1t provides, it
is true, for the purchase of five hundred
millions of gold about that time, but the
proposition is absurd The plan also pro-
poses the repeal of the section requiring
the retirement of so per cent. in green
backs of the new national bank Circula-
ton issued. The greenback circulation
would stand at three hundred and sew
enty millions, while the national bank
circulation might be increased, and ii
specie payments should be indefinitely
postponed-as it would be under the
Democratic hard money plan, so called
national bank circulation would most
likely be increased. At any rate, the door
would be fairly and widely opened for
initiation.
Then, again, under the plan, elven mil
lions in greenbacks, now held in reserve
by the banks, would be released annually,
amounting in nine years to ninety nine
millions. To that extent the paper cur
rency would be inflated, and there would
be at least one hundred millions more pa
per money out in 1885 than there is now,
and the law would permit an increase of
three hundred millions. Thus, while
there is pretext of providing for re-
sumption. it is accompanied bya provis-
ionf for imitation, which would render re-
Jumpt. IN impossible. This is the "hard-
money" plan, as proposed by the Demo
cratic members Of Congress in caucus as
sembled, and it is against this that soft
money men voted. Therefore we rise to
ask what the soft money men want.