The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1876-08-05

whatever their race or color, who are now
united In one destiny of common sef.gov
eminent. II the duty shall be assigned TO
me should not fail TO exercise the powers
with which the laws and constitution OF
our county clothes its chief magistrate to
protect all its citizens, whatever their for
mer condition, in every political and per-
sonsl right.
REFORM AND RESUMPTION.
''Reform is necessary" declares the the
st. Louis convention, "to establish sound
currency, restore public credit, and main
tain the national honor" and 1t goes on TO
demand judicious system Of preparation
by public economies, by official retrcnch-
ments, and by wise finances. which will
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 creditors entitled to payment.
The object demanded by the convention is
a resumption of specie payment on legal
tender notes of the United States That
would not only restore public credit and
maintain the national honor, but 1t would
establish sound currency for the people.
The methods by which this object is to be
pursued aud the means by which it is to be
attained, are disclosed by what the con-
vention demanded for the future and by
what 1t denounced in the past. The re-
sumption of specie payments by the gov
eminent of the United States on its legal
tender notes would establish specie pay
ments by all banks on all of their notes.
The official statement made on the 25th of
May shows That the amount of bank notes
was $500, 900, 900, less 800, coo 900 held by
themselves. Against these $3.50, 10000
of notes the banks held $l4l 900 COO of le-
gal tender notes, or a little more than 80
per cent. of the amount but they also
held on deposit IN the federal treasury, as
security for these notes, bonds of the Uni.
ted States worth in gold about $3.50 000,-
900 available and current in all foreign
money markets.
In resuming, the banks, even if it were
possible for all their notes to be presented
for payment, would have 100000 900 of
specie funds to pay $3.50 000,0 coo OF notes,
without contracting their loans to their Gus
toners or calling on any private debtor for
payment. Suspended banks undertaking
to resume have usually been obliged to col
lect from needy borrowers means to redeem
excessive Issues and to provide receivers.
A vague idea of distress is therefore often
associated with the process of resumption,
but the conditions which caused distress in
those former instances do not now exist.
The government has only to make good its
own promises and the banks can take cafe
of themselves without distressing anybody.
The government is, therefore, the sole de-
lnquent.
The amount Of the legal tender notes of
the United States now outstanding is less
than $370, 900 600, besides 1874 0O0, COO of
fractional currency. How shall the gov
eminent make these notes at ell times as
good as specie 1t has to provide, in ref
erence to the mass which would be KEEP. in
use by the wants OF business, central res
ervoir of coin adequate to the adjustment
of temporary fluctuations of international
balances, and as guaranty against tran
silent drains artifcially created by panic or
by speculation. 1t has also to provide for
the payment in coin Of such fractional cur
rency as may be presented Tor redemption,
and such inconsiderable portions 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.
To make the coin now in the treasury
available for the objects OF this reserve to
gradually strengthen and enlarge that re-
serve and to provide for such other excep-
tional demands for coin as may arise does
not seem to me work Of difficulty. If
wisely planned and discreetly pursued, it
ought moi 10 cost any sacrifice to the bust
ness of the county; i! should tend, on the
contrary, to the revival If hope and confi.
dence. The coin in the treasury on the
Both OF June, including what is held against
coin certificates, amounted 10 nearly seven
ty-four millions. The current OF precious
metals which has flowed gu , f our country
for eleven years, from 1915, IL LuLe 80.
1876 averaging hta' ly seveag six millions
a year, was 1872 millions in the whole peri
cd, of which Gl7 millions were the product
of our own mine9. To amas, the requisite
quantity by intercepling from the current
flowing out of the country aud by aequir-
ing from stocks which exist abroad without
disturbing the equilibrium of foreign
money markets is result to be easily
worked out by practical knowledge and
Judgment, With respect to whatever SUI
plus of legal tenders the wants of business
may fail to keep in use, and which, in or
der to save interest, will be retained tor
redemption, they Can either be paid or
they can be funded. Whether they con-
tinue as currency or be absorbed into
vast mass of securities held as investments
is merely question of the rate of interest
they draw. Even if they were to re-
main in their present form and the govern
ment were to agree to pay on them rate
of interest making them desirable as in
vestments, they would cease to circulate and
take their place with government, state,
municipal and other corporate and private
loans of which thousands of millions exist
among us. In the perfect ease with which
they can be changed from currency into in
vestments lies the only danger to be guard
ed against in the adoption of general
measures intended to remove clearly as.
certained surplus; that is, the Withdrawal
OF any which are not In permanent eyces.