New-York tribune., 1876-01-05

business-and surplus. In eight years OUT OF ten
the demand for from five TO ten per cent additional eur
rency in the Autumn the crops, creates what N
called "Fall pinch There none in 1873. The
surplus currency pre- ously hand than provided
for special Temporary demand The banks continued
lend their balances call at low rates The tendency
reduce the circulation because Of the lack OF profitable
employment is stl manifest The NewYork city banks
reduced their outstanding notes between 1873 and 1879
from $2s 900 900 TO less than SlS 100000
Nor would such additional issue OF legal tenders
give any direct relief embarrassed persons The notes
issued would have to be paid for The difficulty Win
embarrassed persons 10 that they have not available
property to convert into currency II they had the con
version could be well effected with the existing mass
Of currency after such q new issue.
Nor would any moderate issue OF legal tenders nave
the least power to revive the condition OF business
through which have passed the condition OF high
aud rising pricesof universal disposition 70 enlarge
operations, undertake new enterprises ana enter INTO
new speculations-of unsound confidence and reckless
OF credit condition which impaired an apparent
but fictitious prosperity to every thing and everybody
and furnished unnatural market for oil property
Experience shows that after such state Of busness,
period follows in which the opposite ideas aud feelings
prevail Such ia the With all the agencies
having real power to create such condition OF business
operating strongly In the contrary direction the effort 10
reproduce that condition by agency never capable or
much effect would be perfectly futile. II the Treasury
should pay . moderate additional quantity Of legal
tenders they would not go into circulation or act on
prces They would merely accumulate In the money
centers aud reduce the rate Of call loans OF bankers
balances.
II would be only by large Issue, or the menace OF
large or indefinite Issue, that decided eject on prices
could be produced That would create alarm OF such an
impending depreciation to threaten creditors with
conscaon OF their debts and holders OF currency with
its loss and they would hasten to exchange IL for prop
erty Any issue. which should act on the Imagination
melting wild estimates wild fears OF the future might
induce speculative depreciation OF the prices OF the
currency and Initiation Of the prices Of property The
oy even OF moderate when the currency already
exceeds the wants OF business and the increase cannot
be pretended to be for any legitimate purpose especially
IL the object OF removing individual distress by creating
fictitious prices be avowed IL that II strikes Al tho root Of
all confidence and all credit II the principle be once
adopted everybody will inquire how often such eI
pcdicn may be repeated how far 1t may be carried An
attempted expansion oi the petty volume of the cur
rcncy under circumstances which real contrac
tion Of the whole vaster volume Of credit machinery.
which M all lenders with dsmay. aud which destroy
public confidence. hope aud faith. that the basis of
credit systems and credit operations scfdestuctye
It can Dee prolific Of nothing but general disaster.
The temper which pfedomnatos among the people
Icyolts at financial quackcry II is no longer susceptible
10 nattcring Illusions which have exploded amid the
wrecks OF individual fortune. and private prosperity 1t
such commend themselves to the Judgment OF the best
intcllccts and the best experience.
sPTCIR PAYMENTS WITHOUT CONFUSION.
After eleven years Of couvulsion without restoration
Of specie payments. claims a restoration of specie
payments without cOnyulson. The problem does not
seem difficult. Resumption by the Government viii ac-
,ouplish completely resumption by the banks Th"
treasury has only by gradual and prudent measures. 10
provide for the OF such portion of the ou,sani
ing treasury notes ~ the public not wishing 90 retain lot
use will return upon IL for redemption The sum re-
quired If the preparations be- wisely condu'eds 10
IA 10 secure public confidence will be- what Is necessary
To replace the fractional currency and To supply such In
dydu prefer coin 10 paper Tor their htlo stores ~
money! and also what l. necessary 10 constitute cen
tra reservoir of against the huctnaons Of nteF
national balances aud FOR the banks To aInss- sum
ccnt quantity by intcrccptne from the current oi pre-
cous metals flowing ont of this country ana 10y ''lmi
Ing from which exist abroad without disturb
ing the equilibrium Of foreign money MARKET i result
10 De- worked out by study Of al the conditions. and
the clements fun those conditions and by the cI"cu
ton Of the plans adopted with practical xii and iud
mcnt Redemption. beyond this provision " COIN can
he effected "a other business payments are effected of
In any method which converts Investments without M
ercst Into investments upon interest terms the hold
will acccptand by such measures ~ would Keep The
aggregate amount OF the currency srlfadu.ng during
all the process without creating any time an artificial
with alarms which impair confidence contract tho whole
large machinery Of credit and disturb the natural opera
tons Of business. The best resource Tor redemption II
that furnished by public ecOn"mrs. for II creates no
new charge upon the people and stronger public credit
certain 10 result from soundcr finance uud viii reduce
the annual cost Of the national deh'.
These opinions dcduced from reason. are confirmed ~
a recent example by experience. France ia hci 10
months contest with GERMANY. incurred war eypend
ture Of ~ OOOOOoO ~ specie values aud 10 The -
months following the peace paid du Indemnity ~
~ 900 100000 Ia specie, or ~ equivalent, toa foreign
country These great operations carried Oh with
out causing depreciation Of the currency beyond ~
per Its extreme point. aud nthoui disturbing The
general business OF industry OF the people.
what Is most needed now Il that the public mind De- rc
assured 10y wise safe and healing policy The dread OF
imaginary evils ascribcd % the methods assumed 10 Dee
necessary to restore specie paymenss more mischryOus
than the reality wisely pursued ought to bee Az soon rs
the apprcheusOns Of impending fll ~ values D., rc
moved manufacturing and mechanical mlustree will
start anew dealers will huy FOR future cousump'Ion,
crprscs that commend themselves the sober judgment
Of investors will be undertaken and capital, which now
accepts any low rate Of interest where there s risk
but Il withheld from operations of aycrsge characteristic
he lent on reasonable conditions.
TRUE REMEDIES.
But the remedies for the evils olt hy the pcoople
In their business and Industries must extend beyond any
merely relating to the currency They must he
broader and deeper. They must begin with a prompt
and large reduction In governmental expenditures aud
taxation, which shall leave In the hands that earn 1t
larger share ~ the result OF labor They must proceed
by withdrawing, = much possible governmental in-
references that cripple the industries Of the people
They must De contaminated with an increased efficiency
and economy in the conduct Of business aud IN the pro
cosses OF production, and by rigorous fugay IN
private consumption period Of belfdenial viii replace
what has been wasted
we must build up new prosperity upon the odlonnda'
LnII