The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1876-08-23
Resumption Of specie Payment.


IExiract from TildeR's letter sc acceptance ]
The resumption of specie payment
by the Government of the United
States on its legal -tcnder notes would es-
tahlish specie payment by all the banks
on their notes. The official statement
made @n the 18th of May shows that
the amount of bauk-notcS was $780,
000, 000 less $50, DOC, 900 held by them
selves. Against the $3.50, GOO, 900 of
notes the hanks held Sl4l coo, 900 ic-
-al-tcndW NOTES, or little more than
20 per ccit, of ihcir amount, but they
also held Oh deposit in the Federal
treasury ~ i sccuIity for these notes
the bonds Of the United States worth
In gold about $3.50, 900, 900. available
End currcn; in all the foreign money
markets. IN rcsuming, the banks,
even if il H"ra possible for all their
notes 20 I've pro-,n.cd for paymcnt,
would have sJ05. 600. 900 of specie
funds 10 pay S2S0, 600, 00G of notes,
without contracting their loans to their
customers or calling on any private
.icbtor for payment. Suspended banks
undertaking 10 resume have usually
been Obliged 80 collect from needy
borrowers the means 10 redeem exceS-
we issues and to provide reserves. a
Vague idea of distress is therefore often
associated with the process of resump-
iOI. BIT the conditions which could
distress in these former instances do
lot now exist. The Government has
Nnly to make good its own promises
and the banks can take care OF them
selves without distressing anybody.
The Government Is, therefore the sole
ielinquent. The amount of legal-ten-
der notes of the United States now out
standing is less than three hundred and
seventy millions of dollars, besides
thirty-fOur millions of dollars of frac-
tiOnal currency. How shall TIE Gov
eminent make these notes at all times,
in reference TO the mass which would
lie kept in use by the wants of business,
a central reservoir of coin adequate to
the adjustment of temporary auctua-
tons of international balances, and as
a guarantee against transient drains
artifcially created by panic or specula-
ton. 1t also has TO provide for the
payment in coin of such fractional cur
rency as may be presented for redemp-
ton, and such incOnsiderable portion
of the 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 store of money. To make
the coin now in the treasury available
for the objects of this reserve, to grad
ually strengthen and enlarge that re-
serve, and to provide for such other
exceptional demands for coin as may
arise, does not seem to me work of
difficulty. If wisely planned and dis
creetly pursued, it ought not to cost
any sacrifice TO the business of the
country. 1t should tend, on the con-
trary, to a revival of hope and conf
dence. The coin in the treasury on the
Both Of June, including what is held
against the coin certificates, amounted
tonearly $40, 1000, 900. The current of
precious metals which has flowed out of
our country for the eleven years from
July l, 1865, to June 80, 1876. aver
aging nearly $50, 100000 a year, was
$685., 900, 600 in the whole period, of
which s6l7 900, 900 were the product