The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-01-19
from The N. Y. Tribuue.l
A. L..

from the N. Y. TrbuueI
A Surrender.
According to report, Mr.. Payne's plan
of dealing with the currency question
meets the approval OF the Democratic
leaders. and Is substantially this : To
repeal the pledge of resumption Jan. 1,
1879, and to require both Government
and the banks to retain I'm coin each
year q sum equal to five per cent Of the
outstanding legal tenders or bank notes.
At the end of six years. namely July l,
1882, il the volume of legal tenders and
changed-and this bill contains no
provision requiring o change in the
volume of either-the Government
would have on hand gold amounting to
about 80 per cent of its outstanding
legal tenders. and the banks gold
amounting to about 80 per cent Of their
outstanding circulation. But tho bill
does not provide that MT that or ut any
other time specie payments shall be
resumed. by the Government or by the
banks.
The one thing meritorious and useful
in the act of 1876. if we give to it no
stronger Interpretation than its provis-
| ions have generally received, was the
pledge to resume at fixed date, with
| the authority granted to the Secretary
OF the Treasury to prepare for resump-
| ton at that date. He has power already
to accumulate gold, in preparation for
resumption, and states In his latest re-
port that he shall proceed to exercise
that power Ii Congress provides no other
and better means. There is no reason
to doubt that by the sale OF bonds
already authorized he can accumulate
at least rs much coin yearly as Mr..
Payne's bill requires him to put aside.
AS to the Treasury, then. the bill gives
no new power, and imposes no duty that
the Secretary does not now regard as
imposed, in Mt least as great d measure.
by the act Of 1875. Yet 1t is proposed to
repeal the pledge given in that act. For
what purpose ? Does any one suppose
the repeal of that pledge will make it
easier to sell United States bonds and
accumulate gold The repeal would be
formal acknowledgements that the
United States is either unable or un-
willing to commence payment of it's dis
honored notes on the date which one
year ago 1t voluntarily fixed. Will that
acknowledgement strengthen the credit
of the United States
It will be said that the bill Is Of value
because 1t requires the banks to make
provision for resumption On the con
=
to them that they must make provision
for coin resumption ut least as early Us
Jan. 1, 1879. It gives them no new power
to get coin. On the contrary, IL it weak
ems the credit Of the United States, it
makes 1t more difficult, for them, us for
the Government, to get and keep the
amount of coin needed. But by abro-
eating the existing requirement that the
banks and everybody else. shall make
ready for resumption by q date fixed, 1t
virtually informs them that they need
and prudent banks would now feel
called upon to take. Thus the bill con-
tains no new provision or power looking
toward resumption. It merely provides
that measures which the Treasury and
the banks would find 1t necessary to
take under existing laws need not be
taken. It informs the world that re-
sumption is indefinitely postponed.
With reason Secretary Bristow has
pointed out that it may not be possible
for him, in view Of the demand for gold
elsewhere and the condition of the
money markets, to accumulate the coin
needed for resumption with tho volume
OF legal-tender notes undiminishcd. Is
IL not obvious that 1t would be not easier
but much more difficult to accumulate
such q sum in coin, in the face OF o.
formal confession that we either do not
intend or do not expect to be able to
perform obligations undertaken in Jan
uary last? 1t Is very well to say that
the Treasury "shall set aside and re-
tain a certain sum in coin" But it
cannot get that sum in coin unless "a
larger revenue is provided, or United
States bonds continue to sell at par. Mr..
Payne and his associates do not propose
to increase the revenue. They do pro-
pose to lessen the chance Of selling bonds
for gold.
This bill is mere tub to the whale Of
imitation. 1t can have no other intelli-
gent aim than to satisfy Democratic
repudiatlonists by the repeal Of the
pledge Of resumption, and by making it |
more difficult to take the steps neccs-
sary for resumption. Mr. Payne is a
gentleman OF unquestiOned ability and
the utmost sincerity, and he doubtless
has in mind q worthier purpose; but |
new power looking toward resumption,
and is, in fact, OF no practical effect or
meaning whatever except in it's repeal |
of the act Of 1875? He has listened to |
clamors Of inflationists for the re-
peal Of that act; has been anxious
to harmonic the Democratic party"
and SO we have this proposal
of virtual surrender. Let the Demo-
cratic party consider we'll what it does
before it passes such bill as this to sat-
isfy the regulators, and gives the Pres
ident chance to veto it, No man who
wishes to see a Democratic President
elected, will risk the vote Of New York
II Democracy proposes to repeal the
pledge OF resumption, and the President
vetoes that repeal, which party will this
State be likely to favor? s'No steps
backward" was the motto of New York
Democracy. II the Democratic party
attempts this step backward, we shall
be glad to see its wanderings arrested by
! Presidential veto.