The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-11-26
THE RESUMPTION OF sRKcIR PAT-
MENTS.
An Impor.an. Letter from Col. =. A. cOps,,nr.
OFFICE or THr ErNA INsrrANCEl
COMPANY or NV NOGK.
NEW NoHK Nov. 49, 1873.

payments by the Government. In order to avoid
misapprehcnsion. | have preferred to do SO in
my own language. although no one. am sure.
holds in higher estimation than do the intelli-
gence and accuracy OF your reporter.
Undoubtedly 1t is high time that the Govern
ment should redeem in coin its promissory
notes which were issued more than sixteen
years ago. The interest and the honor
Of the nation alike demand it. On the
eighteenth day OF March. 1859. among the
earliest acts Of President Grants admins
tration. the law was passed familiarly known as
the Public Credit act" which provides
that tine faith Of the United States IL solemnly
pledged to the payment In coin. or its eauiya-
lent. Of all the obligations Of tho United States
not bearing interest. known as United States
notes" The chief purpose OF this act was to
remove all doubt as to the obligation Of the
Government 10 redeem Its notes In coin.
Hero the matter was permitted 10 slumbor
until Jan. IA. 1875. when the act OF Congress
entitled An oct To provide for the resumption
Of specie payments " was approved. which con-
tains the following provision: On and after
the LIST day OF January A. ID. 1879. the Secretary
Of the Treasury shall redeem in coin the United
States legal-tender notes then outstanding en-
their presentation for redemption ut the office
Of the Assistant Treasurer Of the United States.
in the city OF New York. In sums Of not less than
$50 Aud to enable the Secretary Of the Treas
urY to prepare aud provide for the redemption
in this act authorized or required. he is author
izcd 10 use any surplus revenues. from time TO
time. In the Treasury not otherwise appropri-
ated. and to issue. sell. and dispose of, at not
less than par in coin. either Of tho descriptions
of bonds OF the United states described In the
act Of Congress approved July II. 1870. entitled
tl.,
tional debt with like qualities. privileges and
exemptions. TO the extent necessary to carry
this oct into effect. and to use the proceeds
thereof for the purposes aforesaid"
According TO high financial authority quoted
in THE sun Of the 2lst inst. Mr.. sherman has
recently declared that he would resume d tod
prJ." The question then confrOnts the nation.
and il is one Of the grayest importance: Can
the Government. In case IL shall resume the
payment In coin Of its obligations on
the LIST day OF January next. thereafter
maintain specie payments II the Govern
ment shall resume on that day and be forced to
suspend again before night. the public credit
will have received a blow from which II may
require years To recover. 1 am aware that
some highly Intelligent aud respectable gentle
men. like the President OF the American EX-
change Bank. hold opposite views. and insist
that the promised resumption had better take
place even II the attempt should prove to be n
failure. II Ii my deliberate Judgment never
theless that II the attempt is made under ex-
isting circumstances-that is. with the so. caled
Silver bill" Of the last session OF Congress left
unrepealed-the result referred to will be inev-
table. soy this after duly weighing. according
to the measure Of my humble ability the facts
thnt the balance Of trade has been for some
time is now. and is likely to be- very largely in
our favor; that. OF the 81 900 900 900 OF United
States bonds which were formerly held ia Eu-
rope. not less than 200 100 900 have been re-
turned. and are now held by our own people
and moneyed institutions and that the sum of
sl4O.O 900 900 or Whereabouts. in gold. has been
provided by the sale Of bonds under the act of
Co 'ress which have quoted and is now in
tho Treasury applicable to the redemption Of
the United States notes.
BY law gold. silver. and legal-tender notes
are I'll Of equal yalus. while tue gold dollar has
to-' Ya commercial value Of about Is per cent
moe than the silver dollar. Between gold and
,lie uhsldiary coins which constitute the great
bu &. Of the circulating medium. the difference
is pward OF ~ per cent. as will be seen by
Tei ence to the following table;
wib, silver at so, pence per ounce which /, the
lai,st quuiatonln the London market the al.
TIE ball dollar is WORT! a. ss.si
ne gaarier dollar i@'si
| A. tho lega-tender notes are redeemable in
| silver. | admit that silver resumption can be
| reached at the date indicated. provided the
! Government has an adequate amount Of silver
! on hand. But il has not and cannot have ON
hand ON the first day Of January next more
than s2j oulOOO Of coined silver This il no
moro than the daily requirements Of the com
| = of
Custom House purposes. The knowledge OF
this fact will afford an Irresistible incentive
20 the banks and other holders TO present their
| leGal-tender notes for payment. As the Gov
| eminent will not have the silver ON hand. il
| will be compelled to redeem them In gold
| which will yield a clear profit of from Is to 81
| per cent. II the holders Of United States notes
| delay until tho Government can coin silver
| the Government will Of course pcdcem In silver
Hence the demand Tor immediate payment
! viii be- universal. On the 10th inst. the banks
| In this city held the amount Of $40 .03s. 2OO-iu
round numbers forty millions Of legal-tendci
notes. or. Tvs they are familiarity termed OF
greenbacks. 1t is safe to predict that this
sum will be largely increased before the CLOSE
Of the year Be this as 1t may. the amount held
by the banks OF this and other cities will
be presented for redemption. and the
|
| have large circulation. and for that rea
son will have u far more urgent demand
ior gold. will certainly not be- far behind them
The gold OF the Government will be drawn 1,
the last dollar. The banks and tho people viii
then mold all the gold coin in the country. III,
| Government will hold the cgal-tenlcr note.
which it has redeemed. but it cannot pay then
out for any other purpose than for public ex
penditures. Ii does not require soothsayer Il
predict that they will become largely deprcci
atad when the facI il known that the GOV
eminent is not in ., session OF q dollar fol
their redemption.
On the other hand, II the Silver hill should BE-
repealed. there Is no lbt but that re,
dempiIon can be accomplish d on the LIST day o
January next without creatii = a ripple in tn,
money market The Secretary Of the Treasury
has the right TO reissue legal-tender notes tina
have been redeemed. Ii it is known tina
these notes can aud will be redeemed in gol,
whenever It is wanted. there will De little or Il,
demand for il.
The Silver bill has never received from tn
press OF the people the reprobation which it de
serves. II stands out conspicuously among tn
| infamies of n Congress- which nOtOriOuslV ii