The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-04-16
irllllluna trll,
rTrrsnAY {, 4. pRIIs 1s, 1878.
Resumption.

saot that the Northwestern ational Bank at
Chicago had commenced the redemption OF
Its circulation, and we also published . cor |
respcndence between the cashier OF the bank |
and the Controller OF she Currency at Wash
iagton. fromHhich 1t appeared that Che bank |
wanted to put gold In place OF green backs
deposited as; its reserve fund with the Fede-
sal Treasury. The answer OF the Control s ''I''
Ter showed that this ut present was impfac-
licab,e. The reserve Is only five per cent. OF
the circulation. There are some two thousand
Eve hundred National Banks. Their reserve
tieposlt is in greenbacks. 1t is not practices
BILE to keep gold for one or two OF them. 1t
world complieate the business OF redcmE-
tion too much. This is the meaning OF the
answer.
Indeed, the proposition. when we con-
slider the small amount OF the reserve fund,
could not have been inspired by any pro-
spective advantage to the bank save through
the advertisement it might thus give to the
country. This is alI--kciat. And the Trea-
surer simply said, g Pay gold at your own
counter"
L. SuER&SN WALTZ HWY Va 1910 AaNNN~
botheration, but be is getting ready rapidly,
and will soon be ready, we hope, should
Congress concur in his plan, to ring the bell
as q signal for resumption.
simultaneously with the Chicago Bank
the Third National Bank OF Cincinnati an
nounces that it is prepared to redeem all OF
its outstanding circulation in gold. 1t is
the second largest bank in Cincinnati.
It has been already stated that the Broad
way Bank Of New York has been paying
gold in suns OF $500 and less to persons
who desired it. Furthermore, the promi-
nent business houses in that city have been
paying out gold freely to their customers
In change.
These facts indicate the ripe condition
for resumption. 1t has been raw-head
and bloody bones y to many people who re-
member the assumptions OF times past,
when the whole matter OF finance was en-
tirely unlike that OF the present day. Then
there were banks in every State whose
standing was as different from one another
as possible. Tue notes Of those banks were
nearly all below par at the settling points OF
the country. The country merchants car
ried them to the principal markets and
paid them for goods. They We're dis
counted instantly by those from whom
the goods were bought, and the bro
kers who discounted them sent them post
haste to the banks that issued them and
had them converted into gold or New York
checks. Thus we bad a sample OF the disad-
vantage OF a bad currency. Its want of credit
away from home kept it at discount, and
the people who traded in it had to pay in
addition to the price Of the goods they
bought the discount upon the notes they
paid for these goods. 1t must be at once
perceived that specie-payments with such
currency was difficult business. hume
merous brokers thriyed upon the gains Of
trading in these degraded notes-in simply
collecting those notes-and the vast amount
which went to the benefit Of these brokers
was tax upon the people. A bad system
it was, indeed.
Now what different state Of things we
have!
The present circulating medium is en-
tirely acceptable to all the people OF the
Union. There is no discount upon the
notes in circulation, and therefore there is
no brokerage upon them, and so far as the
dealing in bank-notes is concerned the bust
ness OF exchange broker is dead; and just
here we may, now that gold.gambling ID
about as dead.
So here we see that the citizen loses
nothing in the money with which he buys.
So also there is no trade in this money.
There is no inducement to gather up the
notes to return them upon the banks that
issued them. There Is not cent to be
made by it. There is no way to engineer
run upon banks for the payment OF their
circulation. Only for deposits can they be
embarrassed; and we may feel this assur-
ance on this point: that where the currency
is so sound that it cannot be made bad there
is the best reason for supposing that the
banks will take care that they do not entan-
gle themselves by reckless use Of the fund
that is placed in their custody, which they
should hold sacred from devastation. The
currency is solvent. The system OF finance
inaugurated by the Government is en-
trenched by accountability and credibility,
and it must be signally reckless and de-
PRAYED morality which is unrestrained by
these things, and which drifts into dishonor
and ruin.
But we have deyiated from the main point
we had in view, and that was simply to show
how much easier, comparatively, it is to re.
sumo now than formerly. The paper money
OF the national banks is acceptable to all
people, and gold is too low to make trading
in thata remuneratiye employment. Green
backs are the paper OF the Government.
When made payable in all dues to the Gov
eminent it must be at par. with gold, and
cannot, except ia small amounts, bereturn-
ed upon the Government to draw gold.
There cannot reasonably be entertained
any fear Of pressure for coin that can at |
all embarrass the Government. The coun-
try can resume at any time, and, what is
better, it can maintain resumption.
------------------------
The Condition of the Country.
We extract the following paragraph from
the money article Of the New York Herald
Of Sunday: @
"The financial situation has greatly
changed since Mr. Sherman made his cons
tract with the Syndicate, and the premium