New-York tribune., 1877-07-20

IL Is exceedingly Important Vo ulSilcl tilt NO
tion that serious Inconvenience can result from
a decline in the premium on gold Journals
which ought to be, and perhaps are, better in
formed, constantly insist that, although the Gov
ernment may he able TO resume specie pay
ments at the date fixed by the Act of 1875,
the consequences to the National Banks, to the
Savings Banks and Trust and Insurance Com
panes, and to other corporations, will be ex-
ceedingly disastrous. This notion tends strong
ly to prevent cps necessary to resumption OF
Specie Payments, but 1t has more Immediate
and serious effect in checking loans and de-
posits, creating dstrust of financial mSttu-
tions, and thls exaggerating the real evils
which n movement toward specie payments
unavoidabIy causes. 1t is especially desirable
that the A lministration, which seems to be
somcwh It in the fog as to the consequences of
a large and rapid withdrawal Of legal tenders,
should be freed from anxiety as TO the effect
OF necessary measures.
One year ago the premium on gold was
| ID to II, and it is now only 5l2 cents on
the dollar. More than half of the gap be-
tween currency and coin has already been
closed The advance III the purchasing power
Of the dollar The increase i'll actual value of
Indebtedness, has been greater within the last
year than it can he prior to the complete re-
sumption of specie payments. We do not now
dwell upon the fact, obvious to all who study
financial questions, that the change in the
purchasing power Of the leSal-tender has been
greater than the premium on gold would indi-
cate. In respect to almost every commodity,
and especially in respect to labor, the legal
tender has gained more in purchasing power
within a year than it has gained III the god
ROOM But we take the price of gold as the
standard, for the present, and ask whether a
change not greater than that which we have
witnessed within the last year can be fatal to
any important interest
1t is said that Savings Banks have deposits
amounting to 81 10000, 900, and that other
financial institutions have Indebtedness of still
greater amount, and that this entire volume of
indebtedness, in case OF resumption, would be
virtually increased by the appreciation in the
purchasing power of the greenback. Let it be
granted. But the increase Gunng the past year
has been greater than any increase, which can
occur prior TO Resumption. Can anybody point
to a single Savings Bank or other financial in
sttutiOn which has been embarrassed Oy the
advance in the purchasing power of It's deposits
or other liabilities ? Not single instance can
be given, and the reason is plain. All nsttu-
tOns of this character have assets correspond
ing closely to their liabilities. If the value of
the dollar which they owe has advanced, the
value of the dollar owed to them has advanced
Just as much. Journals, which insist that re-
sumption will increase the amount which these
financial institutions Will have to pay, from
81, 900 600, 900, let Us say, to 50, 100000, ,0O0
only betray their own ignorance when they
neglect to state that the amount due TO these
same financial institutions must be in like man
ner increased.
The millions who have deposits in Savings
or other banks, or policies In insurance COM
panies, will gain by Resumption. The dollars
owing to them, Oh demand or eonditionally,
will become more valuable But the few thous-
and persons who owe such companies, having
borrowed money from their assets, will lose by
Resumption in this sense, that the dollars
which they have to pay will become more val
liable If the bank or company is honestly
managed and solvent, the gam will more than