The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-01-06
Tilden on Contraction.

Those of our readers who feel an Interest
j.! the discussion of financial questions Will
d n'j.!ess remember that we have repeatedly
said that it was illogical to attribute high
prices OF any other evil to the amount OF Inc
c,.enbacks aud bapk-potes in circulation IN
view OF the fact that this kind Of currency
was o,ly about three per cent. of the paper
which performed the office of currency. And
il would seem to be self-eydent that the in
crease or the diminution of the amount OF
such greenbacks and banknotes could not
possibly bring about a resumption Of specie
payments. These arguments, used also
by WENDELL PHILLIPS and others, nave
never been either noticed or answered by
any bullionist so far as we know. We had
concluded that the contractionists either
could not answer them, or else did not deem
them worthy of their attention. Governor
Tupss, OF New York, however, has studied
the subject, and gives the country the benefit
of his cogitations. In his annual message to
the Legislature Of New York, which is dated
on the 4.h of January, be says: H..
s.Bank-notes, or currency, as they are
called, are but an insignificant portion Of the
ueans.of purchase or payment. The trans
aciops effected by check, operating to trans
fer bank-deposits, in the city of New York
amount now in every eight days, and some
wears ago amounted in every five days, to as
large a sum as all the legal..enders and bank
notes in the hands Of the people Of the whole
OF the United States. The payments effected
al the London clearinghouse amount in
every two days to as much as the whele
circulating medium of the United Kingdom.
The other instruments OF credit by which.
business is carried op-such as book ac-
counts, Dotes Of hand, bills of exchange,
drafts, checks on bank-deposit-are thus
many times the volume Of bank.notes"
,Ji;st 50. And the deduction we make Is,
1ha. The contractionis.s are not diligent stu
dco.s OF political economy. II the checks
used by the banks of New York city amount
III eigh: days to more than the combineo
amount OF all the greenbacks and bank.
notes ia circulation in the United States, how,
in the pame Of common sense, could the re-
duction OF the volume OF these latter kinds
0! currency raise them to par WITH goid
AMI bring about resumption OF specae-pay'
meats? Not one of the contrsctiontsts can
tell. They have adopted theory OF finance
and they adhere to it without rhyme or res
son.
Again There Is another fact that upsets
their theory. The Government has out
about ssyenieen hundred millions of dollars
of bonds, yet, notwithstanding this i'm
m .nse Oxidation" these bonds are worth
,aors than their face Ia gold; whilst the
same Government has out less than four
beadrsd millions of gseenbacks, and these
are far below par with gold. Evidently it is
not the amount Of the greenbacks, but the
!; fact that they do not bear interest that makes
the difference. Contraction, therefore,
c3uid never make greenbacks and gold come
10 par unless the Government should pass q
law which would make 1t necessary for
businessmen to have greenbacks. TO pass
such law and one compelling contraction
miglt have tendency 30 produce that re.
suit. Nov, ii Congress viii make green,
backs receivable for duties on imports Il
Viii have done a great deal towards making
grieaba.ks as good as gold. The amount Of
tas debt which consists of greer backs
is comparatively nothing. People who
l.aYs confidence tAst the Government