New-York tribune., 1876-08-05

me- should not fail to exercise the powers with
which the laws and the Constitution of our country
clothe its Chief Magistrate, to protect all its cit-
zens whatever their former condition, in every po-
htical and personal right
SPECIE PAYMENTS
reform is necessary declares the st. Lous Con-
ton, "to establish sound currency, restore the
public credit and maintain the national honor;'
and il goes on to demand q judicious system of
preparation by public economies, by official re-
trenchments and by wise finance, which Will en-
able the nation the whole world of its
perfect ability and its perfect readiness to meet any
of its promises at the call Of the creditor entitled to
payment
The object demanded by the convention is a re-
sumption of specie payments on the legal-tender
notes of the United States. That would not only
restore the public credit and g maiutain the ma
tional honor" but it would establish sound cur
rency" for the people. The methods by which this
object is to he pursued and the means by which IT is
to be attained disclosed by what the convention
demanded for the future and by what 1t denounced
in thepast
BANK-NoTE RESUMPTION.
Resumption of specie payments by the Govern
ment of the United States on its legal-tender notes
would establish specie payments by all the banks
all their notes. The official statement, made on the
10Th of May, shows that the amount of the bank
notes was $500, 900. less $20,000,000 held by
themselves. Against these $2s0,000,O0O of notes
the banks held $1Il 100000 of legal-cnder notes,
or a little more than 30 per cent of their amount.
But they also held deposit in the Federal Trea-
sury as security for these notes. bonds of the
United States worth in gold about S3G0000,0o0,
available and current IN all the foreign money
markets. In Tesuming, the banks, even Ii
il were possible for all their notes 70 be presented
for payment. would have $500, 0O0,0 600 of specie
fnnds to pay $2So,O00,000 Of notes, without con-
tracing their loans their customers, or calling on
any private debtor for payment. Suspended banks
undertaking to resume have usually been obliged to
collect from needy borrowers the means to redeem
excessive issues and TO prov idc reserves vague
idea of distress is therefore, often associated with
the process OF resumption But the conditions which
caused distress in those former instances do not now
exist The Government has only TO make good
its own promises and the banks can take care OF
themselves without distressing anybody. The Gov
eminent is, therefore, the sole delinquent
LEGM-TENDER RESUMPTION.
The amount of legal-tender notes Of the United
States now outstanding is less than 1870 000, 600,
besides $34 ,000, 900 of fractional currency. How
shall the Government make these notes at al times
as good as specie 1t has to provide. in reference TO
the mass winch WOuiO DC kept III use ny thc wants
of business central reservoir of coin adequate to
the adjustment Of the temporary fluctuations of in
ternatIonal balances, and as a guarantee against
transient drains srifcially created by panic or by
speculation. 1t las also to provide for the payment
in coin of such fractional currency may be pre-
sented for redemption and such inconsidcrable por-
tions of the legal tenders as individuals may, from
time to time desire to convert for special Use, OF IL
order 70 lay by in coin their little stores Of money
RESUMPTION NOT DIFTIcULT.
To make the coin in the Treasury available for the
objects of this reserve gradually strengthen and
enlarge that reserve and to provide for such other
exceptional demands for coin rs may arise does not
seem to me work of difficulty. If wisely planned
and dscreetly pursued it ought not 10 cost any sac
rifce to the business Of the country. II should tend
on the contrary to a revival of hope and confidence
The com IN the Treasury on the Both OF June, IN
Guiding what is held against coin certificates,
amounted to nearly $74 100000. The current Of
precious metals which has flowed out Of our country
for the eleven years from July l. 1850, to June 30,
1876 averaging nearly S7GO00.OOo year, was
$3.50, 900 Go III the whole period, Of which SUI
600 900 was the product of our own mines. 10
amaas the requisite quantity. by lntercepilng from
the current flowing out of the country, and by ac-
Guirifg from the stocks which exist abroad without
disturbing the equilibrium Of foreign money naTt"is
is result 10 be easily worked out by practical
knowledge and Judgment
With respect 10 whatever surplus of legal tenders
the wants OF business may fail 10 keep III Use. ana
which, in order to save interest will be returned for
redemption, they can either be paid or they can be
funded. Whether they continue rs currency. OF be-
absorbed into the vast mass Of securities held a in
vcstmcnts il merely a question Of the rate of III
terest they draw. Even if they were Ia remain in
their present FORM and the Government to agree
to pay on them n rate of interest, making them de
sirablc investments thcy would cease to circulate
and take their place with Government, State, mu-
nicpal, and other corporate and private bonds, OF
which thousands of millions exist among ~. In the
perfect ease with which they can be changed from
currency into investments lies the only danger to be
guarded against in the adoption of general measures
intended to remove n clearly ascrrtaincd surplus,
that is. the withdrawal Of any which are not per
manent excess beyond the wants Of business.
Even more mschievous woud be any measure
which affects the public imagination with the fear
of an apprehendcd scarcity. In a community where
credit is so much used, fluctuations Of values and
vicissitudes III business are largely caused 10y the
temporary beliefs of men cyen before those beliefs
can conform to ascertained realities.
THE WANTS OF TRADE.
The amount Of the necessary currency, at a given
time, cannot be determined arbitrarily, and should
not bc assumed on conjecture. The amount is sub
ect TO both permanent and temporary changes.
An enlargement of it, which seemed to be dura-
bic happened at the beginning Of the civil war
by substituted use of currency in place Of indi-
ydual credits II varies with certain states of busi-
ness II nuctuates with considerable regularity, at
different seasons Of the year. In the Autumn, for
instance, when buyers of grain and other aericul-
tural products begin their operations they usually
need to borrow capital circulating credits by