New-York tribune., 1876-02-14
D4NGEROTS INJECTION.

for their maintenance. just how much specie
will be needed it is impossible to say. me
Bank of France, with paper circulation oil
less than $500. 100000, has already accumu-
lated $500, 100000 of coin and bullion in its
vaults, and Is not to resume The payment Ol
its debts in hard money until 1873. In
France, moreover, the deposits with banks,
bankers, and savings banks are not half so
great as they are with us. Our National banks
alone owe $500, 900 to private derositors,
and our savings banks owe twice that sum.
Specie payment means not only the payment
on demand of United States notes and bank
notes in gold but the satisfaction also of
every call for coin which may ultimately come
upon the Treasury from the deposltors III
banks and savings banks. Suppose, for cx-
amplc. A. b. to havc-a thousand dollars lying
idle in bank in other words to be de
positor, or creditor of the bank, for that sum.
Suppose A. b. to elect at a time OF untavoia-
ble exchange to turn his thousand dollars into
a United States bond, and suppose further
that that bond he purchased in Europe. In
this case 4. B. will by investing the sum
standing TO his credit in the books OF the
bank cause thousand dollars in specie to he
exported to Europe, and he will do this with
out handling dollar of paper money OF any
description. The increasing investments OF
our citizens in United states bonds seem to
have much to do with the present unfavorable
exchange, and the renewal at tins early date
of the expectation of our gold coin to Europe.
Even in quiet times the international move
ments of gold are on a great scale. Between
July 26, 1871, and October II of the same
year. the Bank of England lost $11 $4,000
of its bullion, nearly all of which was exported
to foreign countries. To bring forward later
instance, between August Is, 1879, and jan
uary ., 1876, the same Bank lost $40, 100000
in bullion, which mainly went to France and
Germany. In neither of these instances VAS
there any talk of suspending specie payments.
or any pressure in the money market. There
was neither panic nor alarm. The British
public saw the gold leave the country, and
watched il disappear in French bank vaults
and German mints, and yet was not conyul-ed.
And Why [! That is the important question Tor
Us. The reason Why these great movements OF
gold produced 10 effect beyond slightly adj
yancng the rate OF interest, and that Ion
short time only, was the knowledge on the
part Of the public that the stock OF gold bul-
lion in the possession Of the Bank WAS large
enough to sustain such losses without danger to
the trade, credit, or currency of the country. In
| 1871. inst ureyions 10 the drain. the Bank held
! S137, 100000. nearly all of which was gold
coin and bullion, silver being used in England
only as we use fractional currency. In August
last the Bank held Sl46,9G9,0O0 III coin and
bullion If we are equally well provided there
will be no danger. But we must hear III mind
that in Ireland and Scotland there are no bank
notes IN circulation of smaller denomination
than five dollars, and in England and Wales none
less than twenty-five dollars. In consequence of
tins arrangement there is i'll circulation III Great
| Britain, ont side Of the vaults OF the Bank OF
! England. not less than 100000, 600 OF gold
coin. accordi Z 10 the estimates oi competent
/ authorities. The Bank of England therefore,
if severely pressed. can by timely measures
| increase its stoIe of gold from the coin III cir
culation among the people. II Is also obvious
tha, no man can draw gold from the Bank OF
England for boarding or any other purpose
unless he can first obtain possession Of note
for $2J. In the United States We have
had severe "rnns," bloody riots, and no end
Of trouble from the common Use among the
vcOple of bank notes Of a. low denomination
rs one dollar. At the present moment, with
the exception Of the Pacific states and part
of Texas, there is no genuine money AT oil IN
use among the people. II is all paper, down
! to the tcn-ccnt piece.
| Such as We have described being the state
of things. what prospect is there OF specie
! paymcnts in 1879, unless the accumulation oi
specie be speedily begun! Can the Treasury,
with less than 81 100000, meet the calls
which will come upou il from the holders OF
thc legal tenders and bank notes and the bank
and savings bank depOsitors Experience
/ teaches Ms that the demand for tho precious
metals for expectation from the United States
frequently reaches fifty or sixty million dollar
wear for gold alone, aud no one can estimate
the internal demand for boarding and other
| purposes which will have to be met when the
| Treasury is thrown OPEN The yield OF the
| COLD mines Of the United States is now abont
! $50. 600, 600 year. and this must bc retained
! i'm the country and in the Treasury, or We
| shall not have the specie to resume with in
| 1879. This is q perfectly plain aiithmetical
proposition which admits Of no denial. Yet
we have seen for the last two months the
rates of exchange within small fraction OF
the level which marks the overflow of gold
and spnaizcs its departure 10 lands where n
| greater value is set upon II, and that employ
mcnt given TO IL for which 1T seems TO have
been designed by the Creator of the world.
| On Saturday, the first half million dollars i'll
| United States gold coin were placed on ship
board. and are now on their way TO Europe.
| II il not doubted that millions will presently
! follow, unless Secretary BrstOw nvails himself
! OF his power to sell bonds for gold, and by 30
doing makes bonds more profitable article to
export than gold. We only stultify ourselves
hy proclaiming specie payments for 1879 if we