New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-11
ON THE WY TO RESUMPTION.

We fear that many excellent business men
closely resemble Ensign StebbinS, who was III
favor of the Maine law, but opposed to Its
execution. Protesting to be Jealous advocates
of specie resumption, they protest against any
particular method of reaching it, pronounce 1t
impossible, and declare that it would fnShtcn
commerce to death. They see very clearly
that return to specie payments is absolutely
necessary TO the restoration OF commercial and
industrial prosperity, but shrink with instructive
timdity from any vigorous effort in that direc-
ton. as, indeed, they habitually shrink from any
change whatever the entire effect OF which they
cannot foresee. In Difference to this so-calcd
conservatism, Mr.. Boutwell, tried to get to
specie payments BY drifting. After growing
"up to specie payments" for some years we
found ourselves floundering in the mOrass OF
general bankruptcy. The advice OF those con-
spryatiye gentlemen is exactly like the beha-
vior of the tmid person who has a raging tooth
ache he will travel to the very door OF the dent
ist every day for week, and then, contemplating
with a shudder the possible pains OF extrac-
ton, will conclude that he won't have that
tooth out until tomorrow"
The views of those who think it impossible
to reach resumption by gradual accumulation
of legal tenders in the Treasury are fairly and
forciblv stated in this extract from The Bulletin
National banks in the great monetary ccnters are
forced by law hold hand at all times % per cent in
legal money OF their entire liabilities except bank notes
How the banks TO keep this reserve on hand one or
two hundred millions OF legal tenders are withdrawn
from the community, and gold cannot be obtained to
take their place in the bank rcscrvcs Every million OF
legal tenders withdrawn from circulation dmnishe the
future ability to discount of the national banks at the
great money centers TO the extent Of four millions,
unless banks obtain gold TO replace the legal
tenders withdrawn, which TIE TRIBUNE admits cannot
be DONE
This undoubtedly expresses very clearly
ideas which many well-infOrmed bankers and
business men still entertain, and which cause
them to view with apprehension any diminu-
ton whatever of the grccnback circulation.
But these gentlemen obviously overlook the
fact that whenever the demand for legal
tenders becomes strong, in the banks or any
where else, the price of greenbacks will rise.
As soon as the premium on gold Is reduced
ONLY five per cent 1t will not be necessary for
the Treasury to accumulate legal tenders amy
further. Gold and legal tenders will then have
the same value, and, after reasonable time
for adjustment of affairs to the specie basis,
resumption can take place without any shock.
| Hence, if it be true, as We believe it is not,
| that zone or two hundred millions" Of legal
tenders must be Withdrawn in order to reach
resumption it follows that retirement OF
nearly as much is necessary to produce even
that slightly increased demand which will
cause the notes to appreciate five per cent.
BE the amount larger OF smaller, which must
be got out of the way in order to bring legal
tenders to par, that amount is not needed, and
is positive incumbrance and intolerance to II
healthy revival of business lie who has not
grasped this fact cannot be said to be inteli-
gently in favor Of resumption at all. What
ever inconvenience and stress, whatever con-
traction of loans and liquidation of debts and
adjustment of wages and prices may be neces-
sary in order to get rid of that part of the
currency which will not circulate at par will
be necessary before wo can reach resumption