New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-02-18
SPECIE Pa YMENTS.
A LETTER FROM f. II. DERBY.

A LEI TER FROM r.. ii. Dl.hDl.
RESUMPTION WITHIN kEACH-wITHDRAwING THE
GRRENBACKs-THR ACCUMULATION OF GOLD
AMOUNT OF CURRENCY REQUIRED.
To the Editor Of The Trtbunc
SIR: There arc some pusillanmous men who would
rcpeal the Resumption bill of last year, who insist
that we have made 10 progress toward the resuInp-
ton of specie payments, and are not ready TO re-
sumo. Shall We listen to the cOunscls of tmidity'
Have we made no progress We have since the war
Iepenished our stocks of horses, cattle, and swine
depleted by the war; have improved our mechal-
sm reduced the cost of production, superseded nv
ers and canals by tracks ana tires of Steel revived
shipbulding and replaced half the tonnage lost in
our great struggle, and now compete with the Clyde
successfully both in iron and wooden vessels. In
addition to this We have repealed twothirds OF our
national taxes and least third of our war duties,
the interest on which reduced our debt more than
$40, 600, 600 from what IL stood ut IN May, 1910,
and pay the interest the residue with light TAX
on whisky beer and tobacco. Our manufa'tur
exceed in amount those of England, while we eX-
port cotton cloth To Manchester. Onr exports eX-
coed our imports. Production has at length over
taken consumption, although our population has
continued to increase and will by the year liked for
resumption reach 5000 600 and furnish wide sur
face both for our debt and our money. Nor must We
forget that if our wages have gone above those
which prevailed before the war, the wages OF Ei-
rope have materially advanced.
Shall we then retrace steps, repeal our stat
utes and refuse TO resume II is urged by the tmd
that if we 20 back to gold we shall disturb trade
This was urged when the Colony of Massachusetts
went back to silver after the capture of Loulsbnrg
1t was said that she could not compete with Con
necticut and Rhode Island. but she from adver-
sity to prosperity the hard-moncy Colony. We
are not now rise from currency fallen to 30 per
cent below par. We have achieved most Of the rise
already, and can reach the summit. We have
but few steps further 10 60 to attain success.
AMOUNT OF CURRENCY REQUIRED.
Should we raise our currency TO the level of gold
the first question that will come mp viii he, what
amount do we requrc9 The undoubtcd wish of our
country is Danish paper entirely, but 10 bring
it TO a par with gold. A paper currency has certain
advantages. 1t is easily carried and transmitted,
and under the national guarantee Of uniform value
from Name to Georgia and the true inquiry is, How
much can be safely toatcd at parf After an oX-
haueting struggle, France has maintained At par
circulation of 800 600 900 in hank notes, and has
done this with population reduced 10 36,OO0,ooo
bv the loss of Asacc and Lorraine. Her circulation
of paper is at the rate of 81 per capita, and at tins
rate our country, whose population will reach 90
600 600 in 10, may float at par paper currency oil
amount of our paper currency, inclusive OF green
backs, bank notes, and postal currency, was S733,
9l7,2js. If we deduct from this the amount held
by its issuers $l79, 2G6,G5G, the actual cir
cuation is only 1851 coo, SOP. And we
NAV safely infer that If reduce this by 10 per
cent or to 500 900, 600. may easily iioat II al
par. 1t is idle to urge that quarter OF century
before the year Of resumption our paper currency
was less than half this amount. Ii did not then en-
ov the confidence of the public, sent home
rapdly. and since 1884 we shall have doubled orr
population and more chan quadrhpled our wealth.
We may safely that in 1919 We may main
tain at par with gold circulation of F1OO,oOoOoo.
In October last the circulation of our National
hanks was 1910 O00,0 900. OF this more than Sos
600 600 was held by the issuers leaving net circu-
lation Of less than S250000,o00 This need not be
disturbed for the oycrplus will remain in the banks
or the Sub Treasury and the National bank notes
nav directly or indirectly to Government so large an
amount in taxes and benefits that many city banks
have resigned their circulation The gTecnbacks
and postal currency outstanding were, III October
last, $1lJ,000.000; if We replace with specie III
1879 S1G5, 900 900, we shall have S2j0,O0O,ooO;
and if we add the National bank notes, S2jO'Oo0,-
O00 we have an aggregate OF $JOO,ooO, 600 III ac-
tive circulation Should it be found desirable TO re-
duce our circulation still more, may diminish IT
another & 90. 600 900 by requiring our banks To
hold i'm reserve onc-tenth of their deposits and bank
notes, in greenbacks, with 10 per cent more III
specie.
We require then only $lG5, 1000, 900 to absorb the
overpns of our greenhacks and enable ny to return
to specie payments and this when provided might
be applied at once in 1879, through the banks to
the reduction If grccnbacks and postal currency,
and thus thrown into active circulation. But how
shall this sum be provided without saddling the
country with more debt or INTEREST," The answer IL
simple one. The annual surplus rolled up IN gold
in our Sub Treasury if do not disturb our revc-
nue. system will by tho early part of 1879 furnish
the amount required.
HOW TO PROVIDE A FUND.
During the fiscal year ending with june last our
surplus revenue was close upon S2OO0O,O00 In
the last half wear customs declined little, but m
tcrnal revenue increased, while the interest upon
our debt and our National expenses diminished, and
dnring the half year thus made an Increase OF
81 900 900 in our supus revenue. ThIs result of
wear of depression promises gain of Sll O0O,oOO
and surplus of % 1000, 000 for the coming year
In the coming three years we may reasonably ex-
pcct an annual gain in income from elasticity Of
in interest annually. If we assume the gain at
Sl4. 900 900 annually, shall have the following
result:
Surplus OF 1S7G......................' N5IVVuVuuWV
Surplus Of ls77...............-....... 1s,oooVo
Surplus OF ISIS. ........-......... oZ'op'VUoo
g,,rnus for half of Is7g 3-,OOO,OOO