The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1865-11-04

iar5 more OF paper money than we had nnI; :.
tosr years ago. 1t is fair to say that the
whole OF this amount is not ACTUALLY ,c cir
cu!atlon. as a portion of the compound in
tereSt notes are held for Investment 4
large portion of it is. The amount of M nar
money ahoat Is no doubt between three and
iouf unes greater than 1t was then. Of the
cur,ehcyj r. ast BE observed that no portion
M oi IL, save the small amount issued by the
o'ate banks, is based on specie. Neither tn
/ M""v'aarnEnent nor the National Banks promise
, to nav in specie,
| Tre Secret:ry of the Treasury sees greet
evils In this condition of the currei.v1. In
! speech made by him, a few days SINCE at
Fort Wayne, Indiana, he declared that an
irrcdeemable currency was a thing to be
submitted to as a necessity-but not mo-
ment longer than it was absolutely necessary.
lie SAID that by common consent gold and
silver were the measures of value, and
nothing, as matter of choice, should be
substituted for coin but notes Immediately
convertible into coin. He held that noy the
war had ceased our paper circu alton should
be brought with all practicable dispatch to a
par with coin, and this DE, :, rabie result could
be reached only by reduction in the volume
ot that circulation. He considered the bu,i-
ness transactions of the county to be il, an
un healthy condition. We are measuring
values by false standard. We-have 8. cir
cLlating medium altogether larger than is
needed Tor legitimate business, Tae excess
is used IN speculatiUns. The Uuitei States
to-day Is the best market in the world for
foreigners to sell in. and amorg the poorest
to buy IN. The consequence is, Europe is
selling Us more thar she buys OF US, in
cIUdlng our securities, which ought not 10 20
abroad and there is {. debt rolling uD
against It's that must be settled in part 1T
least with coin. The longer the initiation
Continues the more difficult vii! it be Tor US
TO get back to specie payment, to which W.
must return sooner or later. If Congress
shall early in the approaching session au-
thorize the funding of the legal tenders, and
if the work of reduction is commenced and :
carefully and pru u!ently carried on. we shall
reach 1t probably without serious n.barr.ss>
ment to legitimate business II not. We
shall have Il brief period Of seductive pros
perlty, resulting in widespread bankruptcy
and disaster.
He spoke Of the evil tendencies OF the
present initiation on the public morals, con
ver;ing the business of the country into
gambling, and seriously dimimI Ishing the
labor OF tie land. Men were apparently
getting rich whiie morality languEsGed, and T.
the productive industry of the country Is
demolished. He was hopeful tn ht by wise |
legislation we shall escape financi Il collapse.
aud that the currency may be br ought to a
specie standard without those fna ncal trou.
bIes which have in all countries followed pro-
tracted and expensive wars.
These uSeranccs sufficiently express the !
opinions of the chief mana ger of the national
finances The principles he lays down are
sound ones. No respectable authority il /
finance or political economy disputes heir
soundness. These principles ought to be !
applied. But the Secretary does 40: recon-
mend any harsh application, but only such |
gradual methods as consis: with 4 safe return |
to specie payments.
But it is not aloneshe volume of the cur
rency that needs attention. The character (
of certain portion OF it also red Tres look |
ing alter. The amour; of currency uyw put |
forth by the National Banks nearly equals !
the whole circulation of all the banks in the |
country before the war. This currency is /
supplied, not by one strong National Bank,
which commands the whole field, is i'll po-
sition to understand the wants OF trade all
over it, and is under the control Of eminent
talent and integrity. 1t is not supplied even
by limited number of strong banks, likel
TO be managed with high degree of ability,
but it is furnished from h ndreds of sources
of issues-and not always with the most de-
sirable guarantees as to the character Of the |
issuers. Certainly, with the experience we
have had in this couiitry of stock security" |
degenerated into brood Of wildcat alks,
1t is mere than childish credulity to rssUme |
that, if left to themselves without check, all |
these banks will be conducted with perfect |
honesty and high Intelligence. Prudence, |
with our past experience, suggests, and the |
people should demand the interposition of
some check. Strange as it may appear, such |
suggestions and demands are treated almost |
with contempt, in quarters from which better
things mi ght be expected. We may not |
wonder that such banks as those of Vermont, |
which, as the Springfield (Mass.) Jot1'nui in.
forms us, issue $40 of paper to one OF specie |
in their vaults, should be disposed to veto all |
restrictions. But, that leading journal of
the city of New York should join hands with |
these Vermont irre3eemabies, is matter of
astonishment. We trust, however, that the |
effort now being made il that city to estab-
lish system of redemption for the bills of
the National Banks viii not be defeated
Opposition to it Indicates no large measure
of intelligence, but very obvious recklessness
of the evils arising from vitiatef currency.
This effort involves a question Of much IN
terest to all the poorer classes, for no Ma
tional Bank can fail to redeem in legal
tender without inticting loss on every holder