The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-08-05

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whole country.
The nobler motives OF humanity concur with tho
material interests Of oil in requiring that every OBJ
stace be removed TO complete and durable reconcile
alton between kindred populations unnaturally
estranged, on tho basis recognized by the st. Louis
platform, OF the constitution OF the United states
with lis amendments universally accepted nnal
settlement OF the controversies which epgcndered civil
war"
But, In aid OF result bencncent the moral iutiu
enco OF every good citzon, as we'll every govern
mental authority, ought to be excred not alone to
maintain their just equality before the law, but like
wise to establish cordial fraternity and good will
among citizens, whatever their or color who
arc now united In the destiny OF common self
government II tho DUTY shall be assigned to mo,
should not fail to tho powers with which tho
laws and the constitution OF country cothc IT'S
chief magistrate to protect all Its citizens whatever
their former condition, in every political and personal
right
CURRENCY RyroRA
'Reform IL necessary" declares the St. Louis Con-
vcntion, ITO establish sound Currency restore tho
public credit and maintain tho national honor" and
goes TO demand judcious system OF preparation
by public economics, by official rctrcnchments and by
wise finance which shall enable the nation 10
assure she whole world of its perfect ability aud It's
call OF the creditor entitled to payment"
The object demanded by the Convention is rcsump-
ton Of specie payments tho legal tender Of
the United States That would only 'rcstore the
public credit" and "manain tho national honor" but
II would Establish sound currency" for the people
The methods by which this object is to DO pursued,
and the means by which It IL to DO attained, dis
closed by what tho Convention demanded for the future
and by what It denounced in the past
BANK NOTE RESUMPTION
Resumption Of specie payments by tho government
OF the United States Its legal tender would
establish specie payments by all tho banks all their
notes The official statement made the 18TH of May,
shows that the amour. of tho bank notes was $780,
600 ooo less 500 COO 900 held by themselves Against
shcso $3.50 900 of the banks held Sal 600
OF legal tender notes. little moro than fifty per
cent Of their amount But they also held deposit in
tho federal Treasury security for these notes. bonds
OF the United States worth gold about $500 000 000
ava liable and current In all the foreign money markets.
In resuming tho banks, II 1t possible for all
their notes TO DO presented for payment would have
$500 600 Of specie funds TO pay $3.50 000 coo Of
notes. without contracting their loans to their custom
ers or calling on any private debtor for payment Sus
pended banks undertaking to resume have usually
been obliged collect from needy borrowers the
to redeem issues and to provide
reserves vague idea OF distress IT, therefore, often
associated with the process Of resumption. But tho
conditions which caused distress in those former In.
stances do not exist
Tho government has only to make good It's
promises and the banks take Of themselves
without distressing anybody Tho government is.
therefore, the solo delinquent
LEGAL TENDER RESUMPTION.
Tho amount of the legal tender notes OF the United
States now outstanding is less than $3.50, DOC, COO be-
sides s3a 000 900 Of fractional currency How shall the
government mako these notes at all times a. good as
specicf
II has to provide In reference TO the which
would DO kept in use by the wants Of business, Gen.
trail reservoir OF coin, adequate to the adjustment Of
tho temporary fluctuations OF international balances
aud guaranty against transient drains artincially
created by panic or by speculation.
1t has also provide for tho payment in coin OF such
fractional currency may DO presented for redemp-
ton and such nconsdcrabe portions of tho legal ten
ders as individuals may, from timc to time, desire
convert for special in order to 10y by In coin
their little stores Of money
RESUMPTION DrYFicULr
To make tho coin the Treasury available for
the objects Of this reserve to gradually strengthen
and enlarge that reserve and to provide for such
other exceptional demands for may arise does
not work of difficulty. II wisely planned
fec to the business OF tho country. II should tend, on
tho contrary, to revival OF hope and confidence The
in tho Treasury the Both ofJune Including nat
is hold against coin certificates amounted to nearly
$74 900 Oc0 Tho current OF precious metals which has
flowed out Of our country for the eleven years from
July l. 1865 to Juno 30. 1876 averaging noarly
$76 Oo0, 900 year, $685., Ooo, 0Oo In tho whole
PERIOD Of which SOL 900 the product OF our
mnea
To amass tho requisite quantity, BY intcrceptng
from the current flowing out OF tho country and by ac
curing from tho stocks which exist abroad without dis
turbing tho equilibrium Of foreign money markets. lisa
result DO easily worked out by practical knowledge
aud Judgment
With respect to whatever surplus OF legal tenders
the wants OF business may fail to keep in usc and
which, In order interest," will DO returned for
redemption, they can either be paid they can DO
funded. Whether they continue rs currency, or be
absorbed into the OF securities held as IN.
vcsiments is mercy a question Of the OF IN.
tcrest they draw. Even II they wcrc to
remain In their present form, and the government
to agree to pay them ratio OF interest,
making them desirable investments, they
would cease circulate and take their place with gov
crnmcnt, State, municipal and other corporate and
private bonds Of which thousands OF millions exist
among In The perfect ease with which they can DO
changed from currency into investments lies the only
danger to be guarded against in sho adoption OF gen.
cral measures intended to remove clearly asccrtancd
surplusthat Is tho withdrawal of any which are not
. permanent excess beyond tho wants OF business.
Even more mischievOus would DO any measure which
affects tho public Imagination with the fear OF mp
pretended scarcity. In a community where credit Is
so much used fluctuations Of values and vicsstudes In
business largely caused by the temporary beliefs Of
men, even before those beliefs conform ~ asccr.
tanned realities
AMOUNT or NECESSARY CURRENCY.
The amount Of the necessary currency at a given
time cannot be determined arbitrarily and should
be assumed conjecture. That amount Is subject
both permanent and temporary changca An enlarge
ment OF It, which seemed 10 be durable happened nj
tho beginning Of the civil by substituted use OF
In MA Of