Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1820-03-10

ioi3 De duniitteu 10 DE the GnouOt required
10 eject the exchanges OF the community with
facility and advantage, and that, IN the Year
1915. that circulation was extended 10 : 99,-
1000 which was, in some dee rec augment
Ell IN 1916. the extent st tue dimiuutiOn oi the
currency, IN the space OF three sears may be
perceived. BUTT rs probable that The curren-
cy in isis exceeded 99.OO0,0O dolls. The
banks, upon whose situation that estimate is
founded were established AT IA period when the
practice OF dispensing with the payment OF those
portions OF their capital failing due after they
went TO operation, had not been generally in.
troduced some OF thsm did not suspend spe-
Gle payineats during the general suspension.
The rest were anon: the first to resume them
and nave continued them 10 the present time.
Ii cannot he expected that banks which weat
into operation during the WAY, and after the
Iai suspension had uccurTed, were con.
Quoted with an equal degree OF prudence and
cncumspeciion. y reasonable allowance beiu-
made tor bank notes supposed 10 he in circu
iajon al that period, but which were, in fact,
Iii the posse sliou Of other bake ami for the eX-
cess ofissues beyond tue estimate, the circula-
ton may,,it Is believed he safely calculated
at not .ess than 10000 900 dolls. The pa
per circulation in 1913 has beeRn estimated al
u 900 90. Al that period. however. gold
and silver formed a substantial par, OF The cur
rcnCN. The conditions ut the old hank of the
Ubiied States, in 1910, aHd OF the sixteen
banks III 1919. proves that The demand for spe-
cie from The vaults OF b banks was incuuSil-
cradle Ii Is, therefore proba6le, that the
900 dolls. In 1915 IL Is estimated to nave riS-
en TO 10000 900 dolls and this amount was
prohnbk augmented il: lSi6. At the close of
1919, u has been estimated upon data bel.v-
Ell Ia be substantially correct, at 10 900 600
dolls. According 10 these estimates the cur
rencN oi tie United States has, IN the space Of
Three years, b. en- reduced from ITO U0O, 900
To 45 100000 dolls. Thu reduction exceeds
MY nine per cent. OF the whole circulation of
1910. The fact that the currency in 1915 and
loi6 Was derrtcated, has not sensibly dmin-
Ishcd the effect upon the community, OF this
great and sudden reduction. Whatever was
| the degree OF depreciation, il was still the
measure OF value. IL determined the price of
labor, aud OF all the property Ofthe community
4 change so violent could not Tail under he
mos iavorihle auspices IN other respects, 10
| pTOducr much Oh .ttess, 10 check the arIor of
'nieIpi'zr, aud 'erouSly TO afit ct the prodnc-
| ti' energieN III The nation. The reduction
| was. IN fact, commenced uuder favorable aus
| piceS During the year lSl7 and the greater
| pant o 1915. All ihe surplus produce OF the
| r0u1u! commanded, III iOielsn mai ketS high
| eT pIices ihdn ordinary The rate of foreign
| eAcbailc, afforded no mdurement Tor the ex-
| p"rid'lon oi specie the purpose OF discharg
! tnG debts previously contracted. The Oul,
! dram, TO Winch the metallic currency was
| subject. was The demand for it, tor the prose-
| Cu,lon OF trade to The East Indies and To Chi
| nd ln thus made specie being lhe principal
| commvdiiy. aud indispensable 10 ITS prosecu-
| llon, The amount exported during those years
vas 'eiS great, AID seriOusi, affected the a.
| mount or circulation, Us compelling the banks
| 10 diminish their discounts
Nctwittstandin.: the drains for this COM
| metCe dining these years was unusually iarpe
every oihei circumstances was favorable TO the
| restoration OF the currency 10 d sound stale
! Win the least possible distress to the cominn-
| nit! Tie capacity of the country to discharge
| a large portion OF the DE- bis contracted wifi,
| banks, and winch had coca stoned their excess
| I'VE Issues, was greater than at auy former peri
| Cd, aud Than II probably Will be again for a
/ IdpSe oi successive years. The effort 10 re-
uncv tIe amount - ca rercS durIIg hose wears
/ though successful 10 a considerable degree
was not pursued with sufficient earnestness. Ia
ihe latter part ct 1918. when the price OF the
| principal a:tiCIeS OF American production had
fallen nearly nifty per cent IN foreign markets
whei Tie me chant needed the ala vi additionaI
iUa"S tO Susi am hlm aInst the losses which he
| had incurred by Tie sudden reduction i'm The
| prce o. tine commodities liz had exported lie
waScaiird upon 10 discharge !oaus previously
Contracted. ibr Agricultural, who saw his in
come reduced below his Indispensable uecassi-
| ties the manufacturer, who was not ONLY sirur-
| Silhg against ioieigb competition, bur who save
| Inc sale oi hIs manufactures reduced bY the in
| Capacity OF his customers Ia buy III fact all
Classes al Tue community under circumstances
50 adverse 10 the command of funds, were
snbJhct TO curiaIlments wherever they had
! obtained discounts.
All intelligent writers upon currency agree
| tHat where II Is decreasing IN amonDf, poverty
dud misery InuNi prevail. The correctness of
| the OpIuIon rs too manifest TO require proof -
The united voice OF the natiOn atiesls its ac-
Cui dcy As theTe Is no recorded example in
the history OF nations OF a reduction of the
cnrI""cS 40 rapid aud so extensive, so, but
lew examples have occurred OF distress SO
general, and so severe, AS that which has been
exhibited in the u States. TO The evils of a
decreasing currency are superadded those of d
deficient currency. Bui, Notwithstanding il is
| deficient, II is still deprecated L., several of
the states me great mass Of The circulation IS
/ sIts,A. H.
| the VIII OF the holder. Outing The greater
| pat OF The time that has elapsed since the re-
sumption Il SpeciG payments, the COpV9riibility
vi Ddnk notes into specie has bePnIaiher Honi-
! iHa iHa zeal The largest portion OF the union
| -ou the part OF Tie banks, mutual weakness
iidd produced mutual tOIbedidnce. The eA~
tn,iye diffusion o. bank stock among the .Teat
BODY OF the cittzrns, III most OF The states, had
produced the same ioIbearaUce among indivi-
| dnai'. 10 demand spr'ie Of the hanks, when
| III Was known thai they were unable TO pay,
was 10 destroy thei own interests, by destroy
ing tile credit OF The banks. ia which The pro-
durnee portion OF therpIOperty WAS Invested.
In favor OF fOfDtarance, was also added The in
huenCe Of The great mass OF bank Debtors
Every dOiarI III specie drawn out of the banks,
especially for expectation, induced the neces-
SHY OF curiaiinents. To this portion oithe com
MUMMY, all Other evils we're tight, when COM
! pared with the imperOns demands OF banks
! lhsii eXeT,iODs 10 prevent The drain Of specie
40 tie possession Oi those who COntTOuICd tbeiT
destiny, equdlIed HE magnitude OF tile evils
! which were 10 BE ayOi,fed. lu most parts OF
| ihe UHiou, thus forced slate OF ihing6 is passing
away. The C0nveiliDiiiiy Of hank notes into
| specie is becoming real wherever il il Osteusi-
! bic. II public opinion does rot correct the evil
! ~ those states whcfe this couYertbilIty is hoi
| even osleGsiOie, il viii he the nnperiOus duty
! Of those who are Invested wih the power OF
CpriecilOu. TO apply The appropriate remedy.
| As The currency vs., least IN HOme parts OF
! the UnlUu sdepIeCidied, IL must, Ia those parts,
! snrtT a tar,her reduction before IA becomes
| SOtnd. The nation must couiiuur TO suffer ul-
| Il iriS Is effected. After the currency shall De