, 1876-01-26

All TINT this legislation can accomplish, there-
fore, is 10 compel onch bank to hold $4,000
In coin with which to redeem $4,000
OF notes; but It will have tho cf-
feet OF driving out Of circulation
$3.50, 100000 OF bank notes now in active
use for money purposes. 1Iaving thus
driven the banka to withdraw their circ,,'a-
ton md TO convert their bonds into nctivo
capital, what currency will tl,ora then bo 10
do business with7 Not graenbacks, because
the Batno bill which forccs tho bank notes out
Of circulation provides that the greonbacRs
shall also he retired. We assume TINT tho
means of tho Government to obtain S120,-
O00, 900 in gold for redemption purposes
within SIX years will bo sufficient to TINT end;
thou those notes, coasing to be lcgal-tcndcra,
will npid1y pass into tie Treasury. At
tho end OF tho six years of "prcra-
ration" VIC will hive reached the
condition Of hnying blotted out $780,
100000 Of bank and groonback circu-
1ating paper, leaving $4,5o0, ,000, 0no Of dobts
contracted upon the basis Of q deprcc}ated
paper to bo paid somehow. It il hardly neo-
cssary to stato tho destructive effects Of such
n sweeping contraction, 1t would arrest the
loanB and discounts Of every bnnk in the
United States. It would ronder impossible
the payments Of tho deposits. It would SITS
pend every production In tho United States,
anddischarge millions OF employees. out of the
prostration, bankruptcy, md widespread
ruin, now generation would III tirlo rebuild
now Industries, and cvontunlly restore co1n-
n,orco on m exclusively hard-monoy basis.
But If wo nre never 10 hive Rpccis payments
except through general bankruptcy and ruin,
why put It of six years? Why not have tho
thing now?
Apart from ita effect upon the banks,
the schema itself is open to another
grave objection, Tho annual nccumula-
tion Of gold would have IN i1n,nedi-
ate effect upon the country. The an-
n,,al accumulation required by this bill will
BE- SEQ, ,00o, 600 for tho banks md $20, 900, 600
for tho Goyornment-$40,00 000, 600 for both.
There will bo that much retired from tho use
Of tho country. Tho surplus gold now col.
lected by the Government goes back into cir
culation again by monthly public salcs for
grconbacks, and is bought By tho importing
merchants, 80 tho bnnlss sell tho eighteen
or twonty millions they receive on their bonds
md take their pny in currency. But stop of
these sales OF upwards of forty millions o
year and hoard tho gold, then conceive tho
effect on the New York gold market-that is,
on tie value Of grconbacks. Il would un-
qucstionnbly widen the difference between
gold aud paper, and tho latter would fall
from sS to so, u to 10, and down no ono can
tell how low. How long docs AGr. Monn1sos
suppose an outraged aud oppressed country
would submit to this mods of preparation +
for resurning specie payments? Long before
the expiration Of his sir years Of preparation
tho whole boarding scheme would be repealed,
leaving tho country more hopclessly ut sea
than it is even now.
We repeat what wo layo often said, that
my scheme Of resumption which arbitrarily
ignores tho existing relations Of creditors md
debtors, and which cornpcls the sudden con.
traction Of the paper currency In which the
existing indebtedness was made and ia pay.
able, IL an net Of cruelty mud oppression for
which thore is no necessity, md for which
there can be no Justification and will be no
toloration. Wo nre to have in tho future a
permanent national paper "money," permar
nently irredcernable, aud Of necessity depre.
ciatcd md auctuating; or we aro to havo 4
permauent standard Of values, sucl
ns IL common among tho chief civ
ilized nations Of the world, with sucl
paper anxilaries rs tho conlbinot
capital Of the country may justify and tho
wants Of trndo will require. Tho Gov
erntnent Gnu exercise no function Of banking.
md 1t cannot keep currency of its own at
par which Is not rcdeonnbIo on domand
But how can it do this? We take it for
granted that Mr.. MORRISON and A1r. bur.
cuAnp both seek to put stop to Government.
al acrip currency. But for fifteen years tht
business OF tho country has bccn done il
that sort Of stuff; mud whilo it is advisable
to favo specie standard OF values at the
earliest possible day, thero is no occasion fo
sweeping the present currency out OF exist
onco before new ono with specie values hal
been provided.
Lot Mr.. AIoRnlsoN'a bill onaet that yen
for contracts made after that date, but coli
| tinue to DO Il legal-tender for contracts naads
previously thereto, with tho right on tho pari
Of the holder to fund or Interchange sucl
grcenbncks into 3.G5 gold honda. Thos'
bonds aud notcH will continue to be used a
currency in buying and selling, rs well as il
paying old debts. Meanwhile tho Nationa
Datsks will retire their old notes and rcissl
as mnny new gold notes ~ may bo profitable
! and they are aLlo to tako care Of aud redeem
The inducoment would DO materially strength
cncd by allowing them to issuo $1o0 Of noto
for 800 Of bonds, instead OF $40 Of notes, a
at present. Thus the banks would furnisl
the country gold currency, aud that, too
| without. contraction or distrosa to these il
| dobt
Tho whole basinoss of the country wouli
adapt itself to tho change, while the existing
currency takon at ita coin valuo for curron
business will Teinain In tho heuda Of th'
people ayatlable na logal-tentlor in the ray