, 1876-02-19
scheme for Resumption.

United States from Pennsylvania, gentle
man of intelligence and ability, has recently
addressed a letter TO Mr.. Cox, chairman Of
the Committee Gu Banking and Currency, in
which he presents & novel plan for reaching
specie payments, which be thinks would Sc
cure the object in the course Of q few months
without shcck or convulsion, without any dis
turbance of business and without injustice
or even inconvenience to either debtors or
creditors. 1t must net te inferred from these
sanguine expectations that Nr. COWan is one
of the numerous tribe of dreaners ard crotch
et-mongers who are every cay blowing some
fantastic bubble which they mistake for a
great discovery. Without at all indorsing
his plan we think it plausible enough TO be
worth stating, as it approaches the subject on
a new side and may perhaps suggest hints
out of which something can be made.
Mr.. COWan's fundamental postulate Is the
! undeniable truth that the worst of all evils
in circulating medium is the fuctuating
| unsteadiness of value. \ creditor who lends
money for seven per cent. would receive
nothing at all for its use if the currency
should depreciate seven per cent. between
the date of the note and its maturity. On
the other hand, the debtor who agreed to
pay seven per cent. would really have TO pay
| fourteen Der cent If the value of the cur
reacy should 20 up to seyeu per cent An
! unstable currency damps enterprise and dis
conrases business by making it unsafe for
men TO enter into contracts to be fulfilled at
! d future time. " is not because the cur
rency is depceciated, but because its degree
of depreciation perpetually tiuctuates, max
| ing all calculations uncertain, that business
and enterprise are 50 ruinOusly crippled.
| Surprising a greenback dollar TO be worth
eighty five cents, ana could be steadily main
tanned at that value without risk of fiuctua-
ton, business would proceed with just the
same certainty and regularity as If the cur-
reucy were maintained steadily at par. Thus
| far there can be no doubt that Mr.. COwan
stands on the tenable ground.
The next question is whether it be posi-
bic to fix the value of the green nback at say
| eighty five cents and keep it there without
| variation. Mr. Cowan thinks it possible,
aud points ont a method The plan Is SIM
pie enough, for it consists merely in recOg-
nizing by law what exists as fact. He
would have the government redeem the
greenbacks in gold at their actual value.
This would, to be sure, require a stock Of
gold, but not large stock; for if they
were redeemsble only at their real value they
would rot be presented in great quantities,
paper money being 50 much more convenient
than metallic. Ii at the time the law vas
made the greenbacks were worth eighty
five cents they could not af'er~ard fall
| more than a fraction OF q cent below that
value; because, as soon as they did, enough
| would at once be offered for redemption TO
restore them to that figure. Nor could they
rise more than a fraction of cent above that
value, because as soon as they did, the banks
would issue more notes and expand the Gu.
rency up to that level 1t would be Just as easy
TO maintain them at eighty-fve cents as at a
| dollar, but the advantage Cf redeeming them
| at their actual value would be that it might
L. I,,.o ,,,;,b,nt disturb;rr, brsineSS M fsct-
ing the relations of debtor and creditor. DIR
| Cowau would also have II date fixed beyond
which future contracts should be discharged
only in gold dollars, unless the contract spe-
Gifted that they were to be paid in cnrren-
cy, the greeubaeks still remaining a legal
tender at their real value of eighty-five cents.
The objection of this schene-Otherwlsa
so simple practicable and benefcial-is that
it would be repndiatiOn by the government
| to the ent of fifteen cents On dollar. We
will not argue that point, but only advert to
some facts. 1t is a fact that no present
holder of greenbacks ever received them as
the equivalent Of gold dollars. They have
| cost their holders only their actual market
value and they hare no equitable claim to
be paid more at the expense ei'her OF the
debtors or the country. This view overiooks
the question of public faith, which We will
not discuss at present. But it is fact thai
the government does actually redeem green
backs ct their various fuctuatlng market
values every month in the year-that is to
say, as often as it makes sales of gold Ii ii
NAV DO it Ill this form why not IN a more
open, direct and undisguised form? If ii
may pay ont gold for greenbacks at hnctn-
ating market value why not at steady
market value, especially If the latter method
would bring the great advantage OF a stable
circulating medium ?-N !. HsTG!a.
HoN. RoBEIT c. SCHENCK--The asso'
- - ,:,.J from london statiuu