The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-16
Resumption clos. Mt Ha nd. .

At one part of the day yesterday gold
touched lower point than it has ever
stood at, even transiently, since there was
q premium on gold'at all after the begin
ming Of the civil war. The war broke out
in April, 1861. On the LIST of January,
1862. gold was still at par with the notes OF
our State banks, the greenbacksN and the
national banks not having yet come into
existence. It was during January, 1862
that gold first lose to q premium,
and the earliest gold quotation above
par was 100 IA. At one time yes
terday gold was sold for 100 1-S, but it
closed at 100 3-8, the average of the day
being 100 Ia This is SO near an approx
nation to equality between the value of
paper and gold that the difference is hardly
worth regarding. It may, therefore, be
safely said that we stand at the very
threshold of specie payments.
To be sure, cavaliers who can descend to
juggle with words may say that specie pay
ments will not have come even when gold
and greenbacks are at par. In one sense
they are right. 1t is true enough that our
paper currency may be at par without
any compulsory redemption in gold.
When paper and gold become OF
equal value it is perfectly true that
the holders of greenbacks cannot
go to the Treasury, previous to January,
1879, and demand their payment in coin.
But if they can 60 to broker and exchange
greenbacks for gold without paying pre-
MUM what practical difference does it
not? We are in a fair way to get the sub
stance Of resumption several months in
advance of its forms. As soon as the holder
Of green backs can make an even exchange Of
them for gold we shall have every advantage
of resumption in spite of the fact that the
Treasury is under no legal compulsion TO
pay gold until the LIST of Jan
uary. The trifling premium hereafter
paid will be merely compensa-
ton to coin brokers for the trouble of trans
acting their business. Except by persons
intending to travel in Europe there will be
little actual demand for gold, especially if
legal tender notes should be received at the
custom houses several months in advance Of
the legal date of resumption.
We are confident that the banking interest
and the business community will welcome
the close approach to par between greenbacks
and gold and the actual resumption which
is speedily to follow. The most important
need of the business community is stabil-
ity. Bankers who lend money and mer-
chants who give credits want some secure
basis Of calculation as to the value Of the
medium in which they will be paid. With
out it business Is o game of chance. The
mercantile community, which has always a
quick and shrewd perception OF its interests,
will condemn any movement in Congress
intended to disturb or thwart the resump-
ton policy of Secretary Sherman which is
so near to being realized. The government
may burn them or it may freeze them, but
they wish to be burnt or frozen steadily In
order that they may know what to depend
on in giving credits and transacting bust
ness. Now that specie payments are 80 near
and so assured the whole commercial CON-
munity will give its vigorous support to the
policy of Secretary Sherman.