Year: 1876

The Shoe and Leather Reporter, which
vigorously insists that the Government shall
stand by its pledge TO resume in 1870, is of
the opinion that the amount needed for the
purposes of redemption is great deal small
er than is popularity supposed. 1t says.


The difficulties which lie in the way of the
withdrawal of any considerable sum of legal
tender notes from circulation are likely to
prove barrier to sudden or rapid presenta-
tion of them for conversion into coin. Just as
soou as confidence is fully established that they
can be so exchanged all motive for the substi-
tuition will disappear. A few days of vigorous
paying out would relieve the public mind of
any apprehension on that score. Then the
Treasury, because that would be the safest
place to deposit it, Past experience sustaiDs
this theory. When the banks resumed in 1857
it was but very short time before their daily
receipts of coin exceeded their payments. The
same thing will happen to the Treasury within
thirty days after resumption has begun.


There is another reason why the Treasury


notes are not likely to be sent forward for re-
dempton fast enough to occasion inconven-
fence. The circulation of the natioual banks


is convertible into them, and those institutions
would keep as large reserve of them as pos


sible to meet this emergency. They would


have no motive whatever for demanding coin


for them, for they would answer their purpose


precisely as well.


We appreciate the desirableness of having a


strong specie reserve ready when the the aus


picious hour arrives. But we have not the
slightest idea that twenty million dollars will


be needed to answer all the calls that will be


made. And just as soon as people get used to


the new crder of things, which they will do in


very short time, everybody will wonder that


the return to specie payments was so much
dreaded and thought such a formidable under
taking.


OF its beneficial influence upon trade, of its


efficiency in promoting the general prosperity,
we entertain no doubt whatever. The delusion


that there is deficiency of currency ought to


be cured by this time. 1t has been impossible
to keep the existing quantity afoat III the
Government should add to its issue much or
little, the increase would gravitate with uuer-
ring certainty into tho vaults of Wall street
That there is widespread msapprehension as
to the effect of resumption is evident enough
from the fact that the very classes who would
derive the greatest advantage from it manifest
the keenest aversion to it, The farmers of the
Northwest are credited with hostility to the
proposition, and yet, relatively, they would
gain more BY than the trades people of the
East. Thechange, to be sure, would improve
the condition of every lection, as indeed, any
policy must which is worth adopting at all
The notion that some points will thrive at the
expense of others is crudity that has no place
| in enlightened political economy.


The terror which most people feel of con-
| traction inspires every remonstrance we hear
| against returning to a specie standard. And
| yet contraction is going on all the while, and
can no more be stayed or hindered than the
| laws of gravitation can be suspended. 1t is
shown in the low and declining prices of every
| species of property, real or personal The
merchants, manufacturers and agricuturists
of the land are forced now to sell at coin rates,


and yet have to take their pay in deprecated
paper.


When contraction has accomplished its legiti-
mate function of bringing specie and paper to
| equal value there will be an end of it, We
| shall have instead flexible currency which
| will expand or contract in conformity to the
requirements of commerce All the bullion OF


the country, if there is room for it will be in
| fused into the circulating medium. That is 9
| kind of iDfiatou-and the only kind-that il
not dangerous. Paper initiation would be


calamity. Specie initiation is thing to be de.
L oil