RESUMPTION.
What is there to prevent the nation from resuming specie payments during the present year?
There are those who profit by the fluctuations of gold; who gamble in gold, and would make fortunes regardless of the consequences to others; who control the columns of venal papers and write financial articles; who claim to be the leaders of opinion, and tell their confiding readers that Great Britain did not resume for a quarter of a century; that resumption implies contraction and portends ruin; that we have a thousand millions to fund within three years, and therefore cannot resume.
But is not all this fallacious? Our position is not that of the British Isles half a century since, exhausted by a war of twenty years, without a railway, with less than half the wealth and half the population, and one twentieth of the land and mineral resources that we possess, while their debt was fifty per cent more than our own. They were almost stationary, and we are progressive. In descending from a premium of 180 to 30 on gold, we have already accomplished five sixths of the journey towards specie payment without serious disaster and with an easy money-market.
As respects contraction, the instructive report lately addressed to the Secretary of the Treasury by Mr. Carey, the veteran advocate of manufactures, shows that the compound-interest notes are withdrawn; that a large portion of the greenbacks is held as a reserve fund by the banks, another large portion is locked up in the sub-treasury, and the actual circulation of the Union but $460,000,000,—really less than that of France or Great Britain, although our population exceeds that of either of those countries. And Mr. Carey, in his instructive letter, offers proof that our circulation, although in excess of the gold, silver, and bills circulating before the war, is not disproportionate to our commercial transactions. When the Secretary of the Treasury is ready, no serious contraction will probably be required, and no ruin will follow, if our merchants move with caution, and prepare for a return to the only safe standard of values. Let the manufacturer accumulate no stocks, but continue to make goods to order, to sell in advance. Let him cover his sales by the purchase of the materials as the wise and sagacious have done ever since the surrender of Lee, and we shall be ready for the notice that, after an interval of three or four months, the United States will meet their notes and contracts with specie.
Commerce will gradually adapt itself to this notice, as it has done to the decline of gold from 285 to 130 in less than a year. But it is urged that we have a thousand millions of debt to fund within three years, and therefore cannot resume. Did we not fund nearly a thousand millions at par in 1865, and most of this after gold fell to 30 per cent premium? Then the amount was drawn from hoards and commerce; but now our income exceeds expenditures, and we are reducing the debt ten or twenty millions a month; we require no funds for war or unproductive investments, and when we pay one hundred millions, we return it to those who will seek new loans for investment, and doubtless lend on more favorable terms.
At Paris, Brussels, and Frankfort, the average rate of interest last year was less than five per cent. Give Mr. McCulloch power to go there, to issue bonds for one twentieth part of our debt payable there in the currency of the country; and with such a fund at his disposal, he can at once reduce interest and bring back specie, or rather retain it; for we need not seek it abroad. When the Committee of Ways and Means intimate that they will give him this power, gold and exchange fall; if a doubt is expressed, both advance; and the simple question before the public is, whether we shall cripple the Minister of Finance and give the power to Wall Street;—whether our finances are to be governed by the Jews of the gold board and the speculators of the stock exchange, or by the Secretary of the Treasury. If we ended the war by placing one man on the field to direct every movement,—after we had tried in vain to conduct it by committees of Congress and rival generals,—will not one statesman, with plenary power, be equally effective on the field of finance?
The man who carried a Western State through the revulsion of 1857, and maintained specie payments when Boston and New York succumbed,—who has so well and so successfully wielded the limited power we have given him,—well deserves the confidence of the country. Let him have power at once to go to the fountain-head for the small balance we may require from the Old World; let him have the authority to raise funds to meet the floating debt and temporary loan, and to replace the seven-thirties and compound-interest notes as they mature, and we may confidently anticipate both an early resumption of specie payments and reduced rates of interest, and consequent diminution of debt. With a return to specie payments, our current expenses must fall from thirty to forty per cent, and we can well afford to resign any premium on gold we now enjoy.