The New York herald., 1877-09-06
paper money then to be rsdssmaOe in silver ezoud-

paper money then be redssmabe in silver. excud-
ing goldy
PRESENT ASPECTS IN EUROPE.
The present aspect rs ol continued decentralization
OF silver IN Europe Upon the hypothesis that France
and the otner States oi the Latin Union Will proceed
gradually to adopt the god standard Europe spare
900 out oi ITS present stock OF standard silver
especially # receiving gold IN exchange Tor II, and
then ample stock of subsidiary silver. But
The proposition contempiates that our demand
will arrest the dem one lzation OF silver aud
restore It's former vauc Granting that
shall RAISE the price OF silver, long It shall last,
what sum would Europe spare at or under SD per
ounce which Is 35id., or nearly per cent the
present price The evidence thai Germany has least
$lOo 600 600 Tor SALE aud probably much more, il 5d
be had IL Is believed that the stock o silver that
would be sold from the Latin Union at 5Sd regardless
OF the prospects OF iuture advance, exceeds now
500, 600 600 much OF which foreign and bars
already used TO borrow money upon and 5 money
ITSELF Other countries Europe spare 500 o00
and the probability 10 that good price As 5Si.
would draw large sums OF from India IN ex-
change or government bills to the great Improvement
oi London exchange on .Ddia.
seems probable, therefore, that II the demand for
the United states should the price OF silver IN
London To 5Sd. u would command $500 600 600
oil SILVER Tor our COINAGE II much could be absorbed
IN addition 10 the yeay production. Yet 5Sd. per
ounce would be u per cent below our d ratio, aud
noarly per cent below tho Old French ratio. which IL
expected 10 oe Restored by our demand
The amount oI CON to be retained In our currency
alter the resumption OF specie Payments L. C., III
tive circulation and reserves, Will depend very
upon tue manner OF arriving at specie payments ana
otner circumstance Leaving out of question Tho
subsidiary or chAuge coinage, our people VIII prefer
the OF paper TO The silver which the paper repre-
scuts, Tor convenience aud cheapness. Gold may re.
main only at premium nov, but IL will remain
Indispensable TO transactions OF trade govern
ment. The Supreme Court OF the United States has
decided several that contracts for pay
spec he'd kinds OF money or commodities valid
and can be enforced. Congress, Win the approval OF
the Presdent the silver dollar iegal tender
put II cannot deny the right TO MAKO contracts for
specific performance, and gold contracts are necessary
in some departments of business Therefore, with or
without the bi-Lnetac law gold In large viii
main, and doubtless VIII be counaoie Ia OF
banks and the Treasury.
1t Is not easy 10 conceive how SO much as
$500 900 Of standard silver can be got all
In thi' country, unless the paper currency shall be
abolished
While admitting that the proposition restore tho
bi-meallc Coinage aud ratio oil 1870 Is good, If the
effect sna oe, as assumed, to absorb the surplus
SILVER Of Europe SO lar as 10 raise the bullion
there 10 It's iormer rlto-l5k To I've are compelled
10 say, upon all the evidences iaci probability
that ,he assumption Is 800 violent anu be
tanned. The maximum Of our demand could
lcve Eur pe OF ITS present redundaucy ana would
nol equal half me su IN tnal may become sur
plus. Any cons dera0e excess remaining would lor
bid the recovery of the old ratio The yearly produr
ton silver can now supply export oi $25, 600
TO the East, $4,000, 900 to manufacturers and
$40, 0O0 900 TO the avAaDie money silver.
The opening OF mnts the free cona1e Of
standard silver would, doubtless, advance the price
Of TINS metal Ia some degree and tor sorno
time, but IL would require the resolute purpose and
effort Of France ana other nations to carry lis
value up to the old ratio OF lax /. These
ton by the United States acting independently,
relied upon by its advocates and assumed the
oil their proposition, reasonably expected
The real effect may be- the contrary, TO relieve the
markets OF Europe far as to encourage further de-
monetzaon by allevating their loss in depreciation.
The proposition To restore tue old silver dollar TO
iu tender and coinage presents other considerations
when once II is conceded that ITS restoration by law
cannot It's Old relation oil value TO gold. 1t
then, a deprecated money
EXPERIENCES OF THE PAST.
After sketchng the history Of the deprecated paper
currency In the United States the learned speaker
concluded as iollows:--
Sna We, then, have the experience with depre-
ciaed greenback currency repeated deprecated
another tor tue peopleY God forbid! 10 bring BACK
ap ain fair price Tor labor aud cheaper cost OF living
with employment for the willing labor and the capital
that now idle, conditions which will attend upon
a return OF prosperity, these monetary provisions
First-The resumption OF specie payments January
1872 as required by existing law and in obedience
to It's pledge OF pubic obligation, 20 the end that
idence may return and fear depart
And second or coinciden,y with the first, one OF
these aternat Coinage system the bi metallic
If to be secured IN cooperation with other naions SO
that god and SILVER Will together ana In xed relation
oil value constitute the money OF the commercial
world; or, failing that desirable C0nsunmaton, q
faithful adherence to Tho exisng gold standard. and
use OF all the subsidiary silver COIN that the public
commerce may require.
The superior benefits OF the bi-metallc system,
when made international, are assumed to be undenia
bic. They are, however, less important Tor us than
for any other OF the great mercial nations. We
have no Eastern empire for which iul value silver Is
indspcns sable to us prosperity the due rev
enue return to the home government; nor have
we al eady ON haud large and embarrassing
currency IN deprecla'ing silver; nor hav.
Whatever snail be best Tor tue prosperity OF own
people and the honor Of our government 1t Is, how
the parting of the ways Rarely is the impor
OF right choice oi mag its good or
III consequences From the gold standard change to
the bi-meta lie can Ue made without loss difficulty
whenever found to be expedient
But our adoption OF the b-metallic standard
aud alone, II not followed by similar action by other
a return TO the gold standard, however desirable
and necessary then, costly, dilcult hurtiui all
Interests public and private, unless the government
should duty OF redeemng all the standard
silver with gold Germany IL now dong-a proceed
ing which, relieving people as hoders OF silver
from loss would put the loss upon them again in the
form OF taxes, leaving the uncomfortable reflection
that the loss had been incurred Tor the benefit Of
foreign nations
SAVINGS BANKS.
Mr.. John p. Townsend, OF New York. read inter-
eslng paper on Savings Banks.' In tracing tho
history of beneGcent institutions he said that
the first suggestion. published IN England in 1897,
came from Jeremy Bcntham whose plan Tor the man.
agcment OF paupers included system for what tho
writer called 'frugaty banks" Among the first to
Introduce the idea In practice was Mrs. Priscilla
Wakefield superintendent Of a "Friendly Society
for the benefit OF women and children" In 1901. In
1917, when the first act oil Parliament the subject
passed, there were nearly OnJ hundred private
societies 10 England Ireland and Wales which received
and Invested the savings oil the aborng poor. In 1916
several benevolent gentlemen Of Massachusetts, APP
plyng TO the Legislature for a savings bank char
ter, used the following languagc:-''lt is not
by the aims oi the wealthy that tho
good OF the lower class can be generally promoted BY
such donations encouragement Is far oftener given to
idiene and hypocrisy tnun AID TO suffering worth.
He Is the most effective benetactor TO the poor who
encourages them In habits Of Industry, sobriety and
frugalty" These are the ideas upon which the early
savings banks this country conducted by their
iounOers. In some states the managers were
governed by their own prudence only In tho
investment OF the trust funds; in others they
were limited by law to the best classes OF
securtes specified in their charters While the mum.
and amount OF deposis was small In the aggregate
little difficulty experienced in investing the
money safely and wisely, but when the system became
more popular a II did when good management Its
fruits exh bted the deposits increased rapidly
that trustees VINO before were Emitted, were further
authorized to invest the funds not only In
bonds mortgages, United States and state stocks
but bonds OF counties, cities, towns and villages OF
the States which the banks we're located, and in
some quarters, notably In New England authority was
gwen invest in nrst mortgage bonus OF railroads
cuarIered by The Stnle In winch Tie hpnks 10