New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-20
FINANCIAL PROBLEMS.
SOME QUESTIONS ANSWERED.


the circulation and Influence " your paper think
you can 10 good ny going the ground again Iantc
pate that some OF my questions will appear supefhuons
because they have before For this beg
indulgence. Thousands OF voters have forgotten
what WIS told them the campaigns OF 1879 and 1875.
and destroy ed mslad such documents might now
enlighten them The questions would Ike 10 have you
answer asked below;
/. In one OF your weekly issues read, under
the caption Of Tie Dollar OF Our Fathers" that "tbs
silver metal has not the value 1879
Please tell us why
2 The Government pays part OF its obligations with
silver, but when TO pay taxes the Government
agent may refuse take silver IN payment and
help ourselves, because the laws impose certain
restrictions regard 10 this coin IL II air FOR the
pay me in silver, In unlimited amOunts and
at the same time sustain a which does allow ms
to pay my dcbG the Government IN ike coin
g. Does Resumption mean that in January, 1879, ws
only and completely set aside all paper
money. or may infer that or less paper money
will be continued in use THIS may have something 10 10
with practoabty % Resumption al any given date.
T. We often hear campaign speakers make such sweep
ing assertions as this: The Government contracting
It's currency and II fac, that IN all countries, ali
under all circumstances. times have been hard durng
such contraction" Passages OF history given IN
support OF the statement. whether perverted not.
leave you judgr. Again these speakers say; Tho
reason much ef made the currency
because TIE Government is convinced tiat Resumption
Is ,ible in 1873 unless currency greatly
diminished previous 10 that date.
g. How win our present volume u currency compare,
per capita with currency 1861 The OF tho
Government In destroying retired currency severely
criticised, persons stoutly asserting that Il should
not be contracted, but le at the close Of the
war. and thus spare n tn present strngency.
3. ACain the Government il charged with borrowing
money land paying interest thereon TO use in the
redemption and retirement fractional currency, thus
making needless outlay Is this rruei
7 Many persons are anxious that We should dispense
with all National Banks and let the National Govern
meut Issue money. Tho advocates NJ tins plan claim
tna the management OF ai the money "oui oe source
OF immense revenue to the Federal Government, aa1
would lead 10 material reduction ~ taxes lssuch
n tLihc practicabei II practicable, how much would DC
saved 10 the people the plan was carried outf
:. Many bitter epitbets are hurled at the National
Banks aud all capitalists because OF the seemingly Unfair
advantage given them under our preseut system "
finance Is there any Justice n these denunc atoms
eel. ed its Obligations By making new loan at a lower
10 Has our Government at all times awaited itself Of
earliest possible dat consist mt with the terms Of 10
iOaus, 20 redeem it, obligations
IL. We are urged TO i-sle $500 mterconvertlbs
bon J, such ne.sur feasible II 50, VIII, advantage
or disadvantage will iohowl ~. NnLIAas
l0'pgsio,rH, o., sept. 20. 1877
RI. Because increased production of silver IN Ne
vada, the characterization and sale of $2o0000,OOo
worth of silver by Germany, decreased exports Of
silver from Europe to Asia and restrictions on silver
coinage in the nations OF the Latin Monetary Union
have so greatly increased the supply and reduced the
demand for silver that ITS market price has fallen
from j93i pence per ounce British standard, IN 1873,
to 5fi2 pence at the end of Jnly, 1877.
H. The Government requires no one 10 accept
more chan 50 in subsidiary silver coin, either iruU
itself or any private individual.
III. Resumption means that on tie first Of jan
uarv 1879. all paper money shall DE at par with
and convertible into gold coin AT the option of the
holder. Nobody proposes to dispense with the use
of paper money.
". Secretary sherman has more than once. re-
Gently denied that the Government Is contracting
the currency. National banks which can find no
profitable for their circulation are surrendering
lt, but that is a matter over which the Government
has control.
V. The best estimates place the amount Of coin
and bullion in the United States in 1860 at
$3.50. 600 900, and the amount of State bank notes
at 1907, 02O00; total, SiS7,102,000. or about
$3.50 per capita. The amount of gold and silver
now in the country il believed to be about
5000 OOO. 600; legal-tenders outstanding August l,
1877, 1888, 094, 300; fractional currency, Sl97Sf-
$50 80; National bank notes at the datc Of tho
last report April II, 1870 S294,7lO,3l3; total,
$S73, 5SS SOS So OF this amount Sl7l, 29l SOP %
was in the United Safes Treasury Oh the LIST ~
August but as 500 495 600 of it was represented by
certificates of deposit which may be used BY the
all kinds outstanding and available for Use as
money il about S7J7, 1917, 0js 90, or about $3.50
per CAPITA
VI The fractional currency was past due AMI
dishonored debt of d . Government. like the legal
tenders in which it was redeemable Ii IL true that
the Government has paid of part Of t IN silver
and has borrowed the money ia order to enable II To
do so. But the Government made profit OF 10 PER
cent by the operation. because il bought the silver
10 per cent cheaper than it could have bought the
gold.
VII Ii National bank notes should be dispensed
with and legal-tendcrs should be issued IN their
place. the greenback debt of the United states
would be increased by nearly S300OOO,OOO, and tho
difficulty of providing for its redemption in coin
would be increased in ike proportion. The Govern
ment might save about ! II. 900 year in inter-
est. but would lose at least five times that amount
by the injury of It's credit.
VIII There is no evidence that the proprietors 81
National banks or any other great class OF capital
lists have been realizing eXorbtant profits during the
last four years.
TX About 1925, 100000.
Y II has, except with regard 70 the debt repre-
scented BY the legaenders. That has long been past
due
XII A 3i5loo inteF-con yertbe gold bond could nos
now be sold except at discount, either for gold or
legal-tenders The principal effect Of such an issue
would be 10 force the Government of the United
States to pay interest the rate Of 3Oo per cent
oi all the idle money ia the couutry.-Edl
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uEREsY- HUNTING ~ NEWARK.
-. l.. 81 D. Of IA