The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-08-05
THE LETTERS.
Tilden and Hend-
ricks at Last Respond.
Governor TiIdem.

State and municipal; declares that an
amendment Of the Constitution ought to
be raised separating into distinct bills
appropriations for various Departments
OF public service, and excluding from
each bill all appropriations for other Oh
jects and all independent legislation.
1t holds that an accessory cause en-
hanclng distress in business, is to be
found in a systematic and insupportable
government imposed on the States OF
the South. Besides the ordinary effect
OF ignorant and dishonest administra-
ton, it has inflicted upon them enormous
issues of fraudulent bonds, the scanty
avails Of which were wasted or stolen
and the existence of which is public
discredit, tending to bankruptcy or re-
pudiation.
On the currency question we give the
text in full as follows:
"Reform is necessary" declares the
st. Louis Convention, ''to establish a
sound currency, restore public credit
and maintain National honor;" and it
goes on to demand a judicious system of
preparation by pubic economies, by Of
fetal retrenchments 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 promises at the call OF its
creditors entitled to payment. The OBJ
ject demanded by the Convention is a
resumption of specie payments of legal
tender notes Of the United States. That
would not only restore the public credit,
and maintain the National honor, but it
would establish 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 dis.
closed sby what the Convention de-
manded tor the future, and by what it
denounced in the past. Resumption Of
specie payments by the Government of
the United States on its legal-tender
notes would establish specie payments
by all the banks on their notes. The Of
fetal statement made on the
18th OF May shows that the
amount Of bauk-notes was $500, 900 1000,
less $2O,000,000 held by themselves.
the banks held SAL, 100000 of legal.ten-
der notes, or little more than 90 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 $3.50, =
900, 900, available and current in all for
eign money markets. In resuming, the
banks, even il it were possible for all
their notes 10 be presented for payment,
would have $500, 900 of specie funds
to pay $3.50, 100000 OF notes, without con-
tracing their loans to their customers,
or calling on any private debtors for
payment. Suspended banks uudertak.
ing to resume have usually been obliged
70 ,pll fN,Nn mn
to redeem excessive issues, and to pro-
vide reserves. A vague idea OF distress
is, therefore, often associated with the
process OF resumption, but the condi-
tlons which caused distress in those for
mer instances do not now exist. The
Government has only to make good Its
own promises, and tue banks can take
care of themselves. The Government
is, therefore, the sole delinquent.
The amount of legal-tender notes
of the United States now outstanding is
less than $370, 900, 900, besides $34 900, 900
of fractional currency. How snail the
make these notes at all
times as good as specie? 1t has to pro-
vide in reference to the mass which
would be Kept in use by the wants OF
business central reservoir OF coin ade-
quate to the adjustment Of temporary
fluctuations of international balances
and as a guarantee against transient
drains artificially created by panic or
by speculation. 1t has also to provide
Tor payment in coin of such fractional
currency as may be presented for re-
demption, and such inconsiderable pOr-
tions Of legal-tenders as individuals may
from time to time desire to convert for
special use or in order to lay by in coin
their little stores OF money. 10 make
the coin now in the Treasury available
for objects OF this reserve, to gradually
strengthen and enlarge that reserve. and
to provide tor such other exceptional
demands ior coin as may arise, does not
seem TO me work of difficulty. Ii wise
ly planned and discreetly pursued it
ought not to cost any sacrifice to the
business Of the country. 1t should tend
on the contrary to revival OF
hope and confidence. The coin in
the Treasury on the 30Lh OF June,
including what is held against coin cer-
titicates, amounted to nearly STA 1000, 900.
The current Of precious metals which
has flowed out of our country for the
eleven years from July ], 1865, to June
80, 1875, averaging nearly 76,000,0OO
year was $S32 600, QUO In the whole period,
of which SSI7, ,000, 900 were the product of
our own mines. To amass the requisite
quantity by intercepting from the cur
rent flowing out OF the country and by
rom the stocks which exist
abroad, without disturbing the equi-
librium Of foreign money markets, is a re-
suit to be easily worked out by practical
and judgment. With respect
to whatever surplus of legal tenders the
wants of business may fail to keep in
use and which. in order to save interest,
will be returned for redemption, they
can either be paid or they eau be funded.
Whether they continue as currency or
be absorbed into the vast mass of securl-
ties held as investments is merely a
question of the rate of interest they
draw. Even if they were to remain in
their present form, and Government
were TO agree to pay on them rate of
interest making them desirable as in
yestments, they would cease to circu-
late and take their place with Govern
ment, State, municipal and other corpor-
ate and private bonds, OF which thous-
ands of millions exist among us. In the
perfect ease with which they can be
changed from currency into investments
lies the only danger to be guarded
against in the adoption Of general meas
ures intended to remove u clearly asc2r-
tanned surplus-Jhat is, the withdrawal
of any which are not a permanent ex-
cess beyond the wants OF business. Even