The New York herald., 1876-12-12
SILVER AS A CURRENCY.
What Leading Bankers and Financiers
Have To Say.
How Much Gold Is Needed Before Resuming
Specie Payments.


of specie payment. ana although the majority OF the
critics praise Secretary Morrill, Tor anxiety carry
out the act Of 1875, they agree with him tho
OF gold that should be the Treasury in order
to redeem tho grecnbacks. Many claim that such IS
the confidence OF the people in the stability of the
government that legal tender note issued gold
basis would be accepted, and that in few months
there would be more gold in the Treasury than
ther has ever been. They claim that there
Is more favorable time for resumption than
the present. when find the close OF the year that
the exports have exceeded tho Imports by over
$780, 00U, 000 The views the silver question
very varied and although some think that silver is
entirely unnecessary and the greenback currency by
far more convenient there others strongly lavor
OF tho restoration OF what Is known as tho double
standard. The report the national banks is favor
ably spoken OF, but there is immense outcry IRON
the managers OF these institutions against the present
system OF taxation in this city, where they are taxed
on both their capital and surplus
FisANciERs AND BANKERS.
A HERALD reporter called upon Mr. q. D. Ashley. of
No 81 William street. and the following conversation
cnsued:-
GEpoRrER-what do you think, Mr. Ashley, of Sec
rctary Morr,lrs report in regard to resumption Of
specie pay ments.
Mr. AsnLEy-It seems to be q clear and wc written
message, and no is evidently impressed with the
sity Of the Legal Tender act When he comes to tho
execution Of tho Resumption bill he seems to be
doubtful tho OF 1t will be necessary
to have in tho Treasury He assumes the possibility OF
contracting the grcenbacks 5000 900 COO He seems
10 doubt whether that would be sufficient. In my
opinion he is too apprchcnsive about the Of
gold necessary Tor resumption He seems TO be fear
ful tnat IN the lapse OF time between this and
1879 thcrc might be greater demand for
coin than there is at present. In my opinion his fears
are groundess, and think that Slc0, 0o0 900 OF gold
Win be sufficient to meet the emergency. think that
the actual result OF his preparations resumption
1879 will make he legal tenders what may called
iun damcntal currency that VIII be held in
The national banks and trust companies probably hold
to-day at least $3.50 0o0 900 Of the legal tenders
inasmuch the national bank bills are rcdeemabe in
legal tenders those banks will naturally increase the
amount OF their reserves If this is the II would
probably Leave NOT more than $3.50. 100000 general
circulation. hold, therefore, that the confidence ui
tho people in the ability Of the government redeem
these notes will prevent the presentation Of any
siderable amount CT them ior redemption CON,
and therefore believe that SIu0. .000 600 OF
the Treasury would bc an ample TO meet any
demand likely to occur il seems 10 me however
tnat il will be necessary 10 the legal tender
feature OF tho note SO long us It remains IN circua-
ton aud 70 this there can be valid objection ft
redeemuble IN coin on j. .esentation.
NECESSARY
The people will know that besides this stock OF
and resources oil the government are placed ut the
disposal o the Seer etary 10 maintain resumption and
in the strength, stability and resources or the couu-
try they Will have faith in the praccaoility of re-
dcmpiion and therefore Will not require il. No ono
will Call or specie for Il legal tender note unless he
needs It Tor export lacks confidence the ability Of
the government TO redeem It's promise. Therefore
think tho Secretary overeslimates the obstacles to
sumption
REpoRrER-what are your views on the silver qucs-
tiony
Mr Asutry-There nre substantial rcasobs IN favor
of using silver legal tender in limited amounts,
and for sums OF SO ana less II might under some cir
cunstances be quito advantageous Tho necessity OF
using silver coin for change seems indispensable, aud
the extension OF tho legal tender quality OF
SD Will insure good supply OF the metal, not only
Tor change export countries where silver is
the only measure Of value, while the functions
gwen to other COIN could not interfere with the prin
cipal standard II Is well known that runs upon
banking Institutions generally commence with the
holders OF small sums In notes, and the extension o;
the legal tender quality to sums OF $50
influences the circulation Of silver 10 much larger
amount than heretofore, the effect would be 10 alay
unreasonable fears and to mitigate money crises by
preventing to that extent sudden demands Tor the
demption OF notes. 1t would, in fact, increase the
spccc supply without materially interfering with tho
standard To this extent the double standard may bo
safely adopted.
PRESIDENT JOHN THOMPSON.
The HERALD reporter then paid u visit TO Mr.. John
Thompson, President OF tho First National Bank, and
received tho following Information
RKpoRrER-Mr. Thompson, what do you think OF
Secretary MorrliPs views on assumptions
President THoMrsoN-In relation 10 the resumption
Of specie payments, while Secretary Morrill, EXHIBITS
commendabe anxiety 10 resume, his ideas OF prcpar
ing TO resume are SO ut variance with my practical
observation and experience that but critcise
them severely. He evidently is Impressed with the
necessity OF either contracting the currency dsas-
trousiy or OF ho riding gold 10 an amount that will also
be disastrous. the general theory is that tho Legal
Tender act should be repealed and that the banks
should be compelled 10 obtain amount OF gold sul-
cicnt TO meet the requirements Of reserved money.
This would necessitatc the boarding in bank vaults OF
over $loo, 600 OF gold where legal tender green
backs would pc just as good. The legal
tender status OF grcenbacks should bc lett
as II now is until every one OF them taken away
from the people. and tucre should DO no measure
roduccd 10 compel the people 10 surrender them up,
but leave tnclr surrender and destruction be gov
crned entirely by the peoples choice. If we prefer
legal tender grcenbacks to gold, both being OF equal
value We should be permitted 10 hold them. To rc.
specie payments by contraction OF the currency
and that contraction worked by giving
bonds for currency, Will carry our present depression
In trade and IN values much below what We arc
experiencing
onJEcrs BOARDING GOLD
To resume specie payment by buying up gold and
boarding II for al any iulurc gwen day will also
work out disastrously IL will be sufficient time 10
buy gold when we lind that tho people want IL in
change for grcenbacks after tho grccnbacks are put
upon gold basis IL the secretary OF tho Treasury
should proclaim that on the 1st day OF January next
no Will give out gold for grecpbacks ut par. have
idea that five miliioLs OF gold would be required.
r at the same time he should proclaim thai he would
receive gold In exchange fur grcenbacxs par be-
cve that his gold In hand would be augmented ten
millions during the month Of January. put this in
the above language in order TO fully illustrate my
views resumption OF specie payment My obscr-
vasons during the last fifty years Of panics and bank
suspensions have invariably been that in time of
suspension everybody wanted gold or silver. but IN
times OF resumption everybody preferred paper to gold
AygCDoTE.
will mention anecdoto which occurred In 1857.
siockhoidcr md n depesor In the old Mechanics
Bank or this city came TO me and said.-"Herc, Mr.
Thompson, my bank has announced with tho other
banks that they will resume next week now, how
can they resume? They owe $4,000, 900 OF deposits
aud $3.50 900 OF crcuation, making So 750 600 that
they Will have 10 pay when they resume, ana they
have got $500 900 o! gold Now how can they re.
suipey" replied to him:-"My good friend.
as your bank resumes all It's old friends will take tho
gold back that they drew out in the panic and II
have any gold you will take In too. Come and
mo again in about ten days after your bank has resumed
and wc VIII see how II gets along. My friend was
very much astonshcd 10 nnd, after his bank had re-
sumcd tnat gold kept increasing and growing larger
and IT'S currency went increasing at The same time,
and such emphatically the with all Inc sound
banks; and such will be the case when the govern
ment resumes, VI " will adopt the common sense
method made of by the banks whenever they have