Year: 1877

backs are legal tender for all debts,
public and private with one or two ex-
ceptions, to any amount. In California
there iE this difference that we have what
is known as the specific contract act, by
WHICH, if il be SO agreed between parties,
debt can be made payable in gold, and
in gold only. Our specific contract act
was passed at time when greenbaclls
had downward tendency, and it could
only be conjectured to what limit their
purchasing power would descend. 1t
WAS passed to meet emergencies of trade
which grew out Of the isolated condition
Of the State. Gold and silver was and
had been, the only circulating medium.
The precious metals were dug out Of our
own mines and coined into money, or
gold dust and bullion were freely used in
their stead. The paper currency-in gen.
eral circulation in Eastern States had no
! place here. 1t was not in the nature Of
events that it should have.


The question Of resumption is one now
! destined to occupy prominent place in
national legislation. Bills have already
been introduced into Congress looking to
the immediate repeal of the resumption
act, and strange as it may seem the Dem
ocratic party comes TO the front as the
champion of repeal. 1t is great depar-
ture from the "tme honored" principles
of that party to see it standing forth in
advocacy of paper currency as substi-
tute for gold and silver. Hard money
was its cry when in opposition to the old
Wing party, and when the exigencies of
the rebellion rendered the issue of paper
currency necessity, the few members of
the party who still held seats in the Ma
tional Legislature we're united and loud
mouthed in their denunciation Of the
measure. 1t is certainly remarkable
change Of front, but there is little doubt
that it is one of the chief factors which
contributed to their success in the Ohio
campaign. But now the question con-
fronts Us if greenbacks appreciated to
within cent or two Of par in view Of the
near approach Of the time fixed for a re-
turn TO specie payments, what will be the
effect if that time is now postponed to an
indefinite period ? VIII it not have
direct tendency to depreciate their value
propOrtonally to the length Of time fixed
for them to be redeemed in gold. They
are simply government promises to pay,
and if not paid in seeming accordance
with the ability Of the nation to pay, we
must expect their value as purchasing
medium to 60 down. BY the passage OF
the resumption act the government, in ef-
feet said, 1--WE will redeem our promise
to pay in gold in 1879" By repeal of
the same act this promise is broken. The
owner Of one thousand dollars in curren-
cy, which to day, in view of the near
approach Of the time when it can be ex-
changed to the government for one thous-
and dollars in gold is worth in gold nine
hundred and eighty dollars, will find the
purchasing power of that thousand dollars
materially lcssened iftho time for redemp-
ton is put off.


The financial problem is one not easily
capable of solution, for there are questions
of commercial Importance which nullify
legislation. AT present the currency dol
lar is of greater value than silver and less
than gold. This is partly due to the fact
hat 10 =
amount unless otherwise specifically pro-
vided, while silver is only legal tender
to the extent Of five dollars. The great
weight and bulk of silver coin is another
reason hence, though the proposed law
for the "romonetization" of silver might
make it legal tender for any sum, We.
the laws Of trade would make it always
subject to discount, as compared with
gold. A system of finance which would
do away with the National Banking sys-
tenn and substitute in place of the bank
notes safe system ofcurrency, and which
would make the gold, silver, or paper doll
lar of equal value as legal tender in the
payment Of debts, would no doubt be ac-
ceptable. If there ia anything to be made
by the issue ofpaper currency it is as well
that it should be made by the government
as by an association ofcapitaists. Wheth-
er such system can be envoved from
the material composing the present Con-
gress we think however, highly problem
atcal. Certainly not, if the California
stock in the lower house is a fair average
sample. In the currency, as in fact in
most other questions, there is grand op.
portunity for the display of buncombe
and demagoguery, which are getting to
be too important elements in every polit-
ical contest. But tu us it looks as II the
safest way to deal with the matter is to
carry out in good faith all the steps ne
cessary to preserve the high degree of
credit which now attaches to our nation
al credit and securities to call in the
bonds now payable in gold by the issue
and sale Of others payable In currency
and if we have national paper let II be
receivable for all national dues. The in
terest on our bonds now payable in gold
carries constant stroam of treasure out
OF the country which should be kept at
home, and MS a consequence necesstates
the collection Of gold duties. In this
State where all our business is done on
gold basis, the currency question is but a
side issue. but at the East it has become
one of the first Importance.


BALTIMORE has narrowly escaped a