The New York herald., 1878-11-13

gold and their deposits of currency. by treating the
former a special fund. payable in kind.
1t must he evident that il this discrimination con-
tinues TO be made after resumption 1t will proiong
the idea of the inferiority or circulating notes after
they have been declared to bc restored to an equality
with gold by becoming interchangeable. aud VIII
therefore falsfy the proclamation Of the government
II will not only be practical denial by the banks OF
the sincere purpose OF the 10 maintain its
resolution. but. by anording protection and facility
TO those who draw coin from the Treasury viii place
the moral force aud power OF The banks IN direct op
position to the effort Of government.
AND CURRENCY.
Specie payments will not hSve bean trnly accom-
plished until all distinctions in the use Of gold coin
and currency money obliterated in ordinary
commercial transactions.
!, make resumption effective the banks n,rst cordi
cooperate by practically treating lawful currency
and gold coin equivalent in value they did before
the war. declining to receive ell deposits OF gold as
subject to specal contract as hitherto and accepting
all existing arrangements in which gold coin is pre-
ferred by giving notice that they viii expire on the
lst of January next the day Of resumption and ter
inmate all special gold exchanges ut the Clearing
House.
II the government also. forbparing all further
legislation upon the subject win discontinue the
issue OF gold certificates at the Treasury and regard
gold coin practically the equivalent of lawful
money in all its disbursements, the distinction which
las long existed between coin and currency will
rapidly fade away. and natural law will reasser it's
benefcent dominion over our financial affairs. He
sumption of the coin standard being assured, IL "
entirely safe to leave the circulating notes to find their
true place, their constitutional merits and the de-
mands of trade and the public interest may naturally
determine.
But resumption of the coin standard can he sue
cessfuy reached only by. the fearless disbursement
Of gold both by banks and government, and by such
unreserved and confident action as win manifest to
the public that they working harmonioUsly
together and feel the utmost assurance of its pract
cabity and permanense.
SILVER DIFFICULTY.
There is however, most serious obstacle standing
age and forcible issue of silver dollars not worth
their nominal valuc. which demands the first con-
sideration. The treatment OF these, they
be wisely determined before the question of the
restoration of the commercial standard be
garded substantially settled. The government, by
law, demands the entry OF Its silver coins into
the currency upon equal terms with gold, when out
of every five dollars worth of silver bullion it creates
more than legal dollars and spproprates ono of
them to its own
At the present value Of silver bullion these inferior
dollars can he made At cost Of 30 l0o cents The
is therefore, drawing into it's Treasury
profit upon every dollars worth Of silver bullion
which it purchases Of over twenty per cent. An
it's it's operation, s imposed upon tho people under
the power ITO coin money and regulate the value
thereof and Of foreign coins is certainly most cx
traordinary and untimely exercise OF power under
constitution formed Ito establish justice and insure
domestic tranquility" Just vt the time when the
to recsablish financial order. and to return to hsr-
monous relations of value with foreign coins and
tions. this nsuperahle obstacle which,
If adopted in practice, will disturb anew domestic
tranquility subyert justice and pcrpetuate dscord in
ali business relations with other nations
NOT A COMMERCIAL EQUIVALENT.
Whatever may be the local statute respecting these
coins the fact is indisputabe that they not full
commercial equivalent that their issue such 10 in
and that all those who receive them at their nominal
value are subjected TO immediate tax Of 81 in
every So Of the business they thus transact Upon
the banks greatly depend the introduction Of these
coins into commercial use. The question practically
presented to them is. whether they shall. by recev
ing these coins upon deposit, money OF full value
To nj ahr pnf
of njustceas the custom Of the country and the estab
lished measure of domestic trade. and shall also
and dealers to the extent Of one-sixth OF the
millions ntrusted to their care, and whether they
shall voluntarily permit the gold coin or its equiva
Tents in their possession to become transmitted
into this deprecated value, through their desire tc
effect nominal resumption OF coin payments
which after all will result. net in elevating the
mercial standard to the measure of the most cd
vanced nations, but in degrading IT even below the
value Of irredecmabls paper currency now used
present methods. for which tho country may
,sel proud but .. further H.. detsriorssion s e
ere ssens o the a the
now in direct conAct with this OF Congress- the
banks have the right and 1t is their plain duty to
pause before this serious dilemma. They at lib
erty to accept 10 decline these deficient coins whel
in their nes fsss Ss ossnr = ns
to withhold their influence IN fssssning them upor
the community. And it is their most obvious in
terest and duty to do So But the practical result
this action will be to raise the standard of banka
funds above that OF the government. to draw into
and create general aversion to all transactions
with the Treasury, and with all persons whose pay
ments are made IN this deteriorated coin.
resumption of coin payments like this must
prove q national humiliation, in which it will Ia
found impossible to unite the Active cooperation oi
banks or to enlist the enthusiasm of the people.
HOW OVERCOME OBSTACLE.
We do not forget the fact that under existing Law
the SECRETARY of the Treasury required to coin mot
thay, u nf nj Of In
per month"; and that these will constitute portion
Of the resources of the Treasury. 1t is confidently
hoped that Congress, in view OF the unexpected
fluctuations Of silver bullion since the law passed
will reconsider and repeal IL At an early day. In the
meantime, however, 1t is in the power of the
allowed by law, and to find place fol-
it in the crc rcuating medium in lieu OF notes Of small
denominations. for which the silver dollars may be
substituted. These could be held at gold valne by per
mting them. when excessive. tn De exchanged at par
at the Treasury for gold coin. BY this the
amount required TO be issued within year may be
BEAUTIFULLY absorbed within which time IL il believed
that the permanent restoration OF the gold standard
ins @ saye IN 'as ss.
Congress- respecting hnincial legislation clear and
unquestionabie.
banks may confidently md zealously combine theiS
energies with the Secretary in the movement toward
resumption upon gold Standard with the conviction
that they ut the sanetime fulfilling their hghes,
duty the nation and their constituents and pro
| noting the best intereas of commerce and trade
The IOllOWng Outllnc OF bOHcy sugResteu a.
to be recommended for sopton by the banks in New
York city
AFIER JAUARY 1, 1879.
J. Decline receiving ,old coins special de-
posts" but accept and -reat them only lawful
money"
2 Abolish special exchanges Of gold checks ut the
/ Clearing House
g. Paw and receive hlanccs between banks ri
Clearing House either iIgold legal tender notes.
4. Receive silver dollAt upon deposit, only under
| special contract to withdraw the same in kind.
| g. Prohibit payments balances at Clearing House
in silver certificates isvcr dollars, excepting
/ subsidiary coin in small uns tsay under $10l.
9. Discontinue gold spcial sccounts by no tice to
dealers on January nct to terminate them.
AYPIRMATIv ACTION TAKEN
| The following resoluon then adopted by
vote Of forty nine Of thee present Mr. J. b. Colgate
vice president OF the Bak OF the state Of New York
declining to vcte:- =.
Resolved That the repord Interview between the e,p
bcrs the Clearing Houssnd the Secretary ~ The Trra
ury with the views cxscsh by them In the par q,
to the meeting un She subject OF the
specie mcrts mectssi the cordial o
this association, and thathe practical measures RECON-