The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-10-18
SPEClE.RESUMPTlON.
Judge DoolittIa's Views-Hs Objections to
the Present Legislation on the

A Tribune reporter called last Sat
urdav week upon ex-senator Doolittle
with a view to ascertain his opinion
as to the effect of specle-reSumptlon
on Jan. |. l879-that is, in about SIX
teen months. In the course OF q
lencthened conversation, Mr.. Doolt-
little, said
To answer your question, 1 llusO
first put another question, ana al9Mol
that: and that question is this: 10"
much must the volume Oh paper
money. including greenbachs anu
treasury notes. be decreased; ana now
much must the volume OF coin now IN
this collntry be increased, III order TO
resume specie payments. and to main
tain resumption repeat, to re-
sumo and to smGintain resumption
fo, think all will agree that, to re-
sume Tor week and then to suspend,
would he disastrous.
assume as a fact beyond dispute
that no nation, by any system OF paper
money. ever has maintained or can
maintain specie payments. unless there
is al least as much coin III the country
as there is paper in circulation. l 40
not say it must all be in the vaults OF
the banks or the Treasury. But II
not in their vaults it must be IN the
hands Of the people. The Treasury
and the banks may get on and mann
tain specie payments with one-half
the amount of coin in reserve ana
sometimes with one-third. when there
is. at the same time, large supply OF
coin in the hands Of the people which.
when pushed, the banks Or the Treas
urv may command. The history OF
our own country, of England, France,
Prussia. and every other country,
shows this.
OUR HOME EXPERIENCE.
In 1891. before the Civil War, when
we were in normal financial condl-
tiin-when we had specie payments
we had of bank paper, in round num-
hers. 5000, 900 900; of coin money on
,lepOsit, $l00, 000, 900; of coin clrculat-
inc among the people, according to
estimates. $lG5. 900. There was
then about sos 100000 more of coin
than OF paper to be redeemed. Even
during the suspension in 1857 there was
more coin in the country than there
was of bank issues; but 1t was III the
pockets of the people. and not III the
vaults of the banks.
Bear in mind, continued Che eX-Sen
ator.I do not say that specie payments
can I've always maintained when the
stock Of coin in the country is equa
to the volume of paper. But what
do say is, that specie payments canno
he maintained when the stock OF coli
in the country is less than the volume
of paper.
HOW IT Is ABROAD
In England. where Speciespayment
are maintained, the volume of pape
currency does not exceed $3.50 .0OO.OOu
The coin reserve in the bank of Eng
land IS q little over 500, 000,00O; tn
coin in circulation is estimated "a
$50. 600. 900 In Prussia, where spe
Gle paymente are maintained, TIL
PAPER money is estimated at abou
5000 600 900; the coin reserve OF tn
bank is Sl54O00. 900; the coin in circr
ton is about $500 900, 900. In France
where the bank still remains in SUI
pension, the amount of paper none
is about @5l2. 900 ,0h0; its coin reserv
is about 1858, 900 900; the coin IN CT
culation among the people is $780, 900
900. The notes of the bank are pa
with coin: and yet that bank, COZ
Quoted by the greatest flnanclers
this generation, does not reSun
specie payments. though its stock
coin reserve is more than One-halt tt
amount of its notes. and there Is MOI
than 5000 ,000, 900 more of coin tt
country than paper to be redeemed
demanded. To make long Stol
short. before we can resume spec
navment. and stay resumed, we mu
increase our stock of coin, and q
crease our volume of paper until tt
coin shall at least he equal to Il
paper.
evcped the volume of paper. But
am careful not to overstate what nut
lie done to reach specie payment.
Nov.upon this moderate statemel
WHAT MUST BE DONE TO RESJM
isa simple question of arithmetic
simnla addition and suhstractl'
There is now in circulation abo
$3.50 .O0O. 900 of paper-greenbacks a
1>snl, notes. There is of coin IN
country about $3.50, 100000. 10 ma
The volume of paper equal to the
ume of coin it is necessary TO oecie
the paper and to increase the com
S2250. O00. 900 each.
If we reduce the paper by that $
we shall have of paper money =
n0O. 600. If we increase the com
that sum we shall have S4oo.ooo,oo'
coin IN the country.
There are many who say this Is
impossible thing to be done. bu
assure it is possible. if the law auti
lied il. to fund the greenbacks..
proposed by the National Board
rrade of Milwaukee; in bonds, at
rate OF 10000. 900 per month, and
cancel them. 1t that were done,
National banks. of necessity. We
he compelled to retire their cure
at the same, or at greater rate,
90 into bankruptcy. This would
Twelve and half months, reduce
balance of paper by S25O.oOo.ooo.
r,lea that the Npcrpf3r