The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1877-07-06
Friday. July 6. 1877!
The Specie Basis DslusiOn.

the independent. party, ana q deep IN
terest in its principles, address you. !
have also long been reader of The
ARGTs, which to my thinking, is one Of
the most influential, and ably conducted
newspapers to be found in the northwest.
II is with much satisfaction that l see
The ARGUS came so near adopting the
financial principles of the Independent
party, as the following extracts indicate:
/. Abolish the National banks, and
leave the business Of exchange, loans,
deposits, ETC., to private bankers, like our
Mitchell Il Lynde banking house.
2. Have no other paper currency but the
United States treasury notes commonly
called Greenbacks) and in quantities only
necessary for the business of the country,
and make them payable in gold, on de-
mand, at the U. s. sub-treasurer's in the
different cities.
3. Make the Greenback convertible into
U. S. bonds bearing low rate Of interest.
And The ARGUS then added the follow
ing;
If these are the principles OF the Green
back party, on the currency. we do not see
any reason why the Democracy. should not
adopt them. We do not understand that
the Greenback party desire such an inha-
ton Of the currency as to disturb values,
or any imitation at all beyond the necessi-
ties of business.
The above principles, with this excep.
ton, And make them" (the Green
baGks( payable in gold on demand, at the
U. s, Eub-treasurer's in the different
cities" are substantially the principles
Of the Independent party. The above
exception, would place the currency, upon
the old specie basis policy, which has
been tried 80 long both in this country and
in England.
With respect Tor the opinions of THE
ARGUS, ask permission to give some OF
the objections to a currency payable on
demand in gold.
The Bank of England, the mother Of
the specie basis policy, adopted this sys-
TEN of finance 1873 years ago. BY the
history of the Bank of England we know
that during the 1873 years of her existence
she has suspended specie payments once
in seven years on an average. Eleven
times by act of parliament and once
for &c years in succession.
The same system was imported from
England to this country soon after the
revolution, aud its history here is, that,
within the so years next preceding the
issue OF the greenback currency the specie
paying banks had suspended 10 times, OF
once in 6years.
There has not been time, since thu
specie basis plan was adopted, so far as
know, when there was less than foul
paper dollars to one OF coin in the country
while the paper dollars often run up to II
and sometimes 20 to one.
1t promises 10 do an impOssibility; II
that, it promises to redeem 4. 6. anC
sometimes 10 paper dollars on demand il
coitN when there is but one coin dollar Il
redeem them with; aud for this cause, Al
it has u the past, so it would again il
the futAEe prove failure.
It's advocates assume that the people
would not GCmand payment of any con
siderable amdSnt at one time; but hstor.
proves that No people do not demand
payment Of any aRonsiderable amount il
times Of peace andprosperity; but it is il
times of panic or 66tAcial revolution tina
they demand, and theINsor all that is out
The history of this coustry, and of Eng
land, shows, that specie suspensions, fol
lowed by their consequent currency con
fractions, and then spewic resum ption, a
to be repeated every few years, has bee
the principle cause of .illing the land wit
bankruptcy, aud rui9Nmisery and want.
The trade and cofSgnerce of the worl
has grown much faster than the accumula
ton OF the coin metals, and we are oblige
to substitute the same form of indebted
ness TO facilitate business.
The ARGUS, understand to be in fave
OF greenback currency, issued by the COY
eminent, and payable on demand in golC
No plan, so far as l know, has yet bee
devised, by the advocates of the speci
basis policy by which a government, an
more than bank, can issue the currenC
required by the country, payable on d.
mand in coin, and not be liable to suspeI
sion.
Our government, in the late 'uBpleai
antness, as she had done before. aud {
all governments have to do 10 case Of wa
or financial embarrassment, suspende
specie payments.
Now, wherein consists the benefit of
promise to pay in coin, if it is to be broke
in the hour of need2 Or, what think yo
of a ship that will answer in fair weathe
but Is sure TO 20 TO the bottom in case
a storm.
To say that the government shall issu
the currency, and be required to keep q
hand gold coin to redeem it with, dolli
for dollar, is impracticable. if not imposs
Bile.
Gold and silver are articles of merchar
disc, aud like all other commodities, the
price is regulated by the Irrevocable la
Of supply and demand.
As when silver in 1873, was demonatise
in this country, and in Germany, silvt
fell in the markets. Hence, should IL
government accumulate in its vaults coil
equal in amount to the currency usual
required to do the business of the countr
say $500, 100000. it would increase the
mand enormously, for the product and i
price would go up.
To show how unprepared the govern
ment is, to assume the task OF promlsiI
to redeem all the currency of the COUNT
on demand in gold coin, and how sma
the apex, on which this inverted pyram
would stand, offer the following stat
ment from the secretary of the treasury.
On the 9th of Feb. 1876, the Secretar
of the Treasury, in response to resolutiC
passed by the house of Representative
calling for statement of the gold coin
the possession of the government, su
mitted the following report:
Coin coupons. ............... 1,5lO4O2
Coin certificates ...................... 1877 200
Sinking fund and interest. .......... 1,S73Sl5
Bonds redeemed and interest ......... IL, S32553
Interest due and unpaid. ............ 9,254,634
Outstanding bonds called for sinking
fund...................... 2,I4SOOO
Outstanding coin certificates. 81 96S,3OO
silver coin aud bulion.... .......... H,193,6lS
1873, 645533
Actual gold coin available ..........s 13,31,4Z3
Total Observation-Disclosures. S91 1885,, 057
There you have it, study il well, most