The New York herald., 1877-12-01

that II these rotes are not paid Al the counters Of the
banks which issued them they will be paid at the
treasury Department In lawful money, and that the
securities held therefor are amply sufficient for that
purpose. No rsason therefore, exists why tue peo.
one dollar thfough tho use of bank noies--shouid do
cline 10 receive payment Of their deposits In suoL
notes These notes are not only guaranteed by the
all and other dues, except duties on imports
and are dsbursed by Il IN pay OF p demands
OF national bank notes.
the national banks hold $780, 600 OF loans made
to the people, and each bank required, by section
s. 1876 OF the Revised Statutes 40 ako and rcco,yc az
par, for any debt or liability u H. any all notes or
os ssusa Sy any aSS ra'sSs sssa bank
liabilities 81 the people due 10 the national banks--
q sum largely exceeding the whole amount OF depos.
ts-which may be paid In the notes OF any all OF
national banks IN tho country Thosnstional bank
therefore vory different IN character from
authority Of the several States Moreover the depcs
its of tho banks are largely owned BY their share
holders ana 1y .heIr borrowers ana surely business
stockholders whose prohis depend upon ther
u management will be the last to conspire To iDjure
their credit
THE DEMAND ron GOLD.
Deposits consist chiefly Of bank credits and de-
rived largely from the discount OF commercial paper
and are paid mainiy by transfers upon the books and
not wiih either coin or currency. Throughout The
country all large payments are madc not with money,
but WITH checks In the principal cities these pay.
menls accomplished through the operation oi
clearing houses. During the last twenty.our years
exchanges
$454 OOO, 600 900 while the balances paid In money
were less $40 000 000 00Q The average daily
changes during this whole period were than
SOL 0OD O00, while the average daily balances paid Ia
money hut $4,000 600, or but four and one-iilh
cents upon the dollar.
La England, In 1921, alter resumption, there was
but little demand ior gold nor was thcre in France
alter resumption by the Bank Of France in 1850,
In this country in 1888 or 1853 rhe Bank OF France
is at present IN state OF suspension; but Its notes
preferred by the public TO specie, and the bank
has found diihcut TO reduce the volume OF ts cr-
culaing notes in exchange for coin. All thought OF
demanding actual payment IN specie will vanish as
soon as resumption is (cd and those tnid bank
ors who that their dealers will demand
every dollar thor deposits can reassure themselves
by an agreement with their dealers That their dc.
posts shall be payable, as at the present time, I'm
current iunds - which will then consist Of legal ten.
der notes and the notes of specie paying banka
There Is no greater bugbcar than The OFT repeated
CRY that the Treasury and tho banks must provide
specie Tor the payment OF $2ooo.0oo0oo OF deposits
before resumption can take place.
TUE MEASURE OF VALUE.
The Coinage act oil 1878 provides for the issue OF
goc dollar which shall be tho unit Of value but since
the suspension OF specie mcnts tho business trans
actions Of tho country have been based upon iase
and nuctuating measure Of vaiuc This will be seen
from tho following table, which gives the value OF the
legal tender paper dollar, IN CENTS Tor July OF each
year from 1864 TO 1877 and tor November Of the
ent year.