The New York herald., 1877-01-08
specie Payments.


The able letter of Mr.. Edward Atkinson, of
Boston, which we printed yesterday, recalls
attention to a very important subject which
has been engulfed in the party agitation
which engrosses the attention of Congress.
We suppose it is chimerical to expect useful
legislation relating to the suffering business
interests of the country during the Presi-
Dental struggle which is likely to continue
during this session. 1t is one of the many
mischiefs of disputed Presidential cleo
ton that it renders our government
useless for the discharge of its ordi-
nary and regular functions. The state
of the currency was recognized in the plat
forms of both political parties as the great
question of the period, and it is certainly
the one which most urgently calls for imme-
diate and wise legislation. We have law
requiring resumption Of specie payments on
January /, 1879, and i. is certain that this
requirement cannot be fulfilled without new
legislation. If the subject goes over to the
next Congress there will remain only sin
gle year for the preparatory measures to go
into operation, whereas two years are very
short period for preparations for executing
the law of 1875. II we are to resume in
1879 it is absurd to wait until 1878 before
prescribing the method and supplying the
means.
1t is deplorable that the present period OF
low values, which is so favorable to early
resumption, must pass unimproved. The
scale of general prices is as low as it would
be in an active condition of business in
specie-paying times, and if Congress would
take advantage of the opportunity it would
be easy to fix prices at this standard and en-
courage enterprise to embark in new under
takings by an assurance that goods manu-
factured for the next year or two could be
sold in o stable market Stability is impos-
sible, calculations for the future arc
impossible, unless our currency Is re-
lieved from the danger Of fluctuations.
AS present values approximate the specie
basis no interest would suffer by vigorous
steps for putting our currency on sound
basis. But the unfortunate Presidential
muddle blocks all such legislation at time
when it is most urgently demanded.
There is one branch of Mr.. Atkinson's ar
gument which seems not merely cogent but
conclusive He thinks it absurd to accumu-
late a stock of gold merely for the purpose
of redeeming the outstanding greenbacks.
The legal tender notes are constantly COM
ing into the treasury in excess of the expen-
ditures, and it is the plainest dictate Of
common sense to cancel them instead
of putting them again into circulation.
It is preposterous to think of boarding
gold to pay them when simple process of
withholding and destroying them would
forestall any necessity of redemption. If o
merchants notes of hand should come into
his possession in the ordinary course of
business it would be ridiculous for him to
make laborious and expensive preparations
for their payment when the simple process of
putting them into the fire would discharge
him from all further trouble about them. It
would be equally ridiculous for the govern
ment to accumulate gold for the redemption
of the surplus greenbacks which come into
the treasury.
There is quite as little necessity for the
government to make m expensive hoard OF
gold to redeem the outstanding greenbacks.
They could be readily funded into long four
per cent bonds without causing the slight
est disturbance in the money market,
whereas ON accumulation of specie to pay
them would disturb and convulse the gold
markets of the world. Not dollar OF
gold is needed for redeeming the surplus
greenbacks, although when they are brought
to par o gold reserve will be needed to
maintain them at that point. But we de-
spair of any sound legislation on this SUBJ
ject during the present heated session.