The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-05


held 10y themselves. Against these S2sO.OO0,0OO
OF notes the banks held .lil0O,0O1 of legal
ssne o ba nSs TL e @ bSg more enNS e IVY pSE
In the Federal Treasury, as security Tor these
notes, bonds OF the United States worth IN gold
about SjGO,ODO.OOO available and current In all
the foreign markets. In resuming. the banks,
even II 1t were posi- lie for all their notes to be
OF specie funds TO pay s2s0,OOO,OOO Of notes,
without contracting their loans to their GUS
ment. Suspended banks undertaking to resume
have usually been obliged to collect from needy
borrowers the means TO redeem excessive issues
tr 50 Ia. therefore, often associated win tho
process Of resun ton. but tho condltlons
do not now exist.
The Government Ina only to m'kc good It's
own promises and the banks can ke care OF
themselves without distressing anybody. The
Government Is. therefore, the sole delinquent.
LEGAL TENDER RESUMPTION.
The ,moUn' OF the legal tender notes Of the
| United 't1tc~ now outstanding Ia less than
s'70OM.eD, bosilss t3i,nO,OO OF fractional cur
fepci, HuN shiil the government make these
1t h t. provide, in reference to the mass
which w''rl1 be- kept In use by the wants OF
the adjustment Of the temporary fluctuations OF
international bai,ncss and as a guarantee
against transi 'nt drains artlhcialy created by
II has also to provide for the payment In coin
OF such fractional currency as may be presented
tor redemption. and such inconsiderabe por-
tiOns Of the legal tenders as individuals may,
from tlfne 10 time, desire TO convert lot specla
use OF In order 10 lay by In coin their little stores
OF money.
RESUMPTION NOT DIFFICULT.
To make tho coin now In the Treasury avail
able for the objects OF this reserve, to gradually
strengthen and enlarge that reserve, and to pro-
coin as may arise does not seem to me work
OF difficulty. IL wisely planned and discreetly
pursued IL ought not to coat any sacrifice to the
business Of the country. II should tend, on tho
contrary, to a revival of hope and confidence.
The coin 10 the Treasury on the Soth Of June,
tod to nearly S7tOOO.OoO. The current OF
precious metals which has flowed out OF our
country for the eleven years from July /. 1885, to
June 30 1875, averaging nearly t76,000,00O year,
was $S2,OOO,VO In the whole period, OF which
| f6lT.0OO,OOO we're the product Of our own mines.
To amsss the requisite quantity. by Intercept
Ing from the current flowing out OF the country,
sbTosa witbout dspbsp sSe tse eounSn MnSn
| foreign money markets, Is a result to be easily
worked out by practical knowledge aud judg-
ment.
With respect to whatever surplus OF legal
tenders the wants Of business may fail 10 keep
In use and which, ia order to save interest, viii
| be returned for redemption they can either be
| paid OF they can be- funded. Whether they
continue as currency, or be absorbed into the
vast mass OF securities held as Investments, Is
| merely a question Of the rate OF interest they
present form, and The Government were 10
| agree TO pay on them rate OF interest, max
s Ha,,d snen re asSa+cg lhsessh1nts YES, tb s tnes
| with government, state, municipal, ana other
| corporate and private bonds, OF which thou
feet ease with which they can be changed from
| currency into investments lies the only danger
| to be guarded against in the adoption Of general
measures Intended to remove clearly ascer-
tained surplus that is, the withdrawal OF any
| which are not a permanent excess beyond the
wants OF business. Even more mischievous
| would be any measure which affects the public
imasination with the fear OF an apprehended
| much used, fluctuations OF values and vicissi-
tudes n business: are largely caused by the tenn
porary beliefs OF men even before those beliefs
can CONFORM TO ascertained realities.
AMOUNT OF NECESSARY CURRENCY.
The amount OF the necessary currency at a
sns sbon no be os .snmsd oe
That amount Is subject TO both permanent and
| Temporary changes. An enlargement Of II,
which seemed to be durable, happened at the
| beginning OF the civil war by a substituted use
OF currency IN place Of indiyidIal crsd1!si Ii
| seasons OF the year. In the autumn, Tor ~
STANCE when buyers OF 6p g5sp anS Gsnes .hey
| usually need to borrow capital or circulating
| credits by which to make their purchases. and
| want these funds in currency capable OF being
| distributed in small sums among numerous
sellers. The additional need Of currency at
| volume, and, II a surplus beyond wnat - re-
| qured for ordinary use does not happen to h tNe
| been on hand at the money centres, a scarcity
| of currency ensues, aud also stringency IN the
Ut IL WIS in reference to such experiences. that,
| masaare 10 the New York Legislature OF Jan. D,
1876, the suggestion was made that'
| ays,y HortIon OF its issues which the public do
not wish TO use Having assumed TO n, n,nno2o'
sions against every body else, IL Is bound to fur
nish all which the wants OF business require
The system should passively aIlo
| tho volume OF circulating credits to cub and
| dow according to the eyer-changing wants oi
| sible the natural laws OF trade, which II has
superseded by artificial contrivances. And u
| a similar discussion ia my message OF Jan.
is-s IL was said thai resumption should be effect
ed "by such measures as would keep the az
grega,e AMOUNT OF the currency ~, an;
| time, an artificial scarcity. and without exctin.
the public imagination WIN alarms wnee Sdrs r1a ra
chinery Of lit and disturb the natural opera
tious Of business"
MEANS or RESUMPTION.
"Public economies, official retrenchments
and wise finance" are the means which the -
| Louis Convention indicates as provision Tor re
serves and redemptions.
The best resource Is reduction OF tue ex
| peuses Of the Government below its Income
!, Tor that imposes no new charge on the people
H. however, the improvdence AMI vast
| which have conducted US TO period OF falhn
revenues oblge US to supplement the results .,
| economies and retrenchments by some resort I
loans, we should not hesitate. The Goyernmen
!, | ought not to speculate ON It's own dlshonot' \
order TO save Interest On us ,e, ~, nc
| at "A fictitious par. Inc highest national mono
a is not only right, but would prove profitable. I
!, Ihe public debt. $9Sj,pUO0n bear interest at
!. ner cent In gold, and S7l20n,0D at per cen
in gold. The average interest Is 7,DS per cent,
N |
i | highest credit, wisely ayiiled II, ought grAd'
"a aily 10 obtain reduction Of one per cent IN III
! | interest on most Of the loans. saving OF on
per cent on the average would be sl1WOOOoO
Il wear In gold. That saving, regularly invested
Ia four aud a half per cent, would, IN loss thd
= | thirty eight years, extingui-h the p1nrpl
= The whole $l.T0O0O0,0O) OF funded debt mlghl |
! paid by this saving alone without cost 10 u
l. people. - ..,,,,.ro,,
70 The proper time for resumption Is the tin
10 | when wise preparations shall have rlpened ~
a perfect ability 10 accomplish tie obJect WI
n a acertainty and ease that Will inspire cOutdenS
AZ and encourage the reylying OF business. i
d earliest time Ia which such result can
a brought about is the best Even. when u
is prop iratlons shall have been maturei, me eAl
10 I date would have 10 he chosen VIA reieleh
"a to the then existing state OF trade aud cree
Il. | opetations In our own country, the course
I'd foreign commerce, and the condition oI the e
changes with other nations. lhe speclnc inea
al ures and the actual date are matters VI det
ry | n wing reference TO eVer-Changlng cOnultlol
"a, They belong TO the domain of or ctrh tuull
re i-trative statesmanship. The captain ,oI
"a steamer about starting from New \ ork 10 Law
cr pool does not assemble a council over ms oce
he chart and FIX an angle Dy which TO lash the ru
II der for the whole voyage. human inte
all RenCe must he at the u0ln 70 discern the shl
nd ing forces Of the waters and the winds,
lef human hand must be on the helm TO feel
'er elements day by day, and guide 10 mast'
| nAm