New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-12-06

hanks I'm the absence Of the great demahuS " .ne
Government for currency since inc ciose VI '"c
war ~ ,r.,.u .s On
hanks are reouIred to hold, II IL thought proper
to state. that us tho liabilities stood on tho iirst
d,v or October the required sum was SH,2 ,s3i
over the amount that banks were perih'tttu W
have 10 their credit. and count M part OIL the
same, In banks acting "a redeemng agents. Inc
hanks held at that time Sll, 96G, LAB In CON- which,
deducted from Sa2c SAL. leaves $50 295. 7Oi, the
sum they should have held In legal'fndcr notes
TO fulfill the requirements or the law.
II will pe seen, therefore. that the sum held. In
lawful money In excess OF the required reserve,
was $l1O,Oi5,S9
fable consequences which must result from this
eyccssiye amount Of irredeemabc currency, II
ieft uncontrolled by the action Of government ID
respect to the reduction OF iis own issues, ana IN
enforcing a system Of redemption which shali
entail by It's operations the power and tendency
IN EXPANSION SO far rs bank Issues are concerned,
II |, believed that the most efficient check w0uld
he found i'm It's compulsory redemption In inc
great financial and commercial centres oil tho
country--New York, Boston, or Philadelphia.
Under such system, properly enforced many
Institutions estabs ed chiefly for tue advantage
arising from the issue of their own promises,
without the expectation Of being called upon 10
redeem them, would find that they had exceeded
the requirements OF legitimate business, nhu
obtain relief In the abatement OF their issues. Ihe
circulation thus withdrawn from sections where
It Is not required could be- dispensed 10 0ther
portions of the country a. yet but partially sup
piled with banking institutions. A..
In this manner, also. would remedy DO nir-
nished for the unequal distribution when mas
resulted from the Act OF the 81 oil March ihs',
giving the preference TO the conversion " oanso
banks over applications for new national associa-
tons without reference TO the amount oil currency
which by such conversion has been concentrated
In localities where the CORNER Institutions "efe
the IN ost numerous
The national banks already organized embody'a
capital sufficient TO cntite them 10 receive
800. 672 g92 Of circulation on the deposit Oh the
rcdlllslle securities In government bonds. IL ~
moi ANTICIPATED, however, that more IMAM thrcc
hundred millions will be called for By banks now
organized, many Of them. located IN large CUES
of the northern States, Will not ark for the
amount OF circulation TO which their capital emil
ties them. Bonds have been drposited 10 eniil'e
the banks now organized 20 s24t, '%, 10 OF crcu.
lation only. In no event VIII the mint OF the ac'
be exceeded. Il, A.,
trainers of the federal constitution 10 respect 10
the measure Of value 10 be- used in the TRANSACTION
Of business during tine of peace, anu III TUE
ordinary flow of events. there II ample Jlstinca
ton for departure from metallic currency anu
a bank circulation redeemaole In specie on ae-
m and In the necessities OF the country AZ super
induced by the unparalleled civil wal through
which the nation has been called TO pass now,
however, that the emergency wbicn caneu LOT
this departure from nrst principles has hhppiIy
h.en sI,rmounted. IL would seem " be the dictate
Of sound policy TO return As speedily ~ the ihah-
cial coudiI'ou Of the government ana ihe business
interests OF the country VIII allow 10 more
normal condition OF the currency, 20 thh' 'he
pecuniary relations sub-lSling between OURSELVES
and other nations may DO placcu upon '"o'o
harmonic Ions basis oil value.
The evils resulting from an irtedecmhbie cur
rency are too well known TO require CONFEDERATION.
They should be- tolerated no longer tIlah apsoiutc
necessity requires Til. funding. ana Tue cOhse-
oueot retirement of portion OF The inactive crcu-
ation shown 10 be now held In reserve, ana iiaDie
TO be called out ~ increased specuiatiohs ana
additional enhancement OF prices may DEMAND,
and the consequent reduction oil tue hamo W 'nc
amount rcauIred by the actual necessities oil btisi-
ness would seem to constitute one OF the tsteps
toward that sound condition OF nnance uhu.r
| which alone permanent prosperity eau NC
| secured BY such course only can we place tne
/ manufacturing and producing Interests OF the
country In IA postion To compete successfully WIN
other nations, prevent an excess OF imports over
exports. and thus prevent drain upon our
resources. which must otherwise postpone 10 an
Ind, Unite period the resumption OF specie pay
menis.
Under the present imitation OF prices the cost OF
labor and OF all the elements entering into thc
production OF staple commodities, whether IN
|
as 10 invite the direct competition OF all other
countries In our own markets. IL IA TINS when
makes our market the best 10 sell IN and the
worst Ia buy In on the part VI foreigners, ahu
which, In the consequent absence OF an adequate
export demand, must eventuate In the denudlng
US OF the precious metals andthe creation oil a
debt abroad that will be greater drain upon ouI
resources than our present national debt.
BY q gold valuation OF our Imports anu exports
the balance that has accrued against this countr,
, duripO he four wears DreyiOus the 10Th DAY u
June last, including the Interest on American sc
. curties held abroad purchased within that Tune
and also taking iato due consideration the amer
. ence between the standard OF our own ana ina
OF foreign gold (nine and three-eighths per CENT
has been SOS, 900 OF collars.
By reason OF the probable falling Oh IN the ex
port Of coin. and the Increased amount oi intercs
to be paid abroad, 1t Ii estimated that me accfi
ing balance during the present fiscal year VII
amount TO $40, 0OO, O0O making q total isr NV
years Of $42S, 100000.
8 Our only resource 10 pay this gold balance
against US has been and still Is the sale OF our Sc
8 curities abroad. The amount required, II SOLO a.
an average discount Of forty per cent, VIII u
Sis, 900 900, and the annual interest al six pei
cent Will be Si2,1s 900 The discount OF forty
per cent will amount 10 $685. 30, 900; every dol
lar OF which will be an entire loss 10 the country
2 The almost exclusive use and demand for gol1
now is for the payment OF custom dulles 70 Dt
paid out again for the Interest on the public DEBT
this Is followed by the sale OF the surplus beyond
the amount required TO pay the Interest, whicl
surplus again accumulates 10 go repeatedly
through the same process. IL 0ne-half the difler
3 ences between our imports and exports were pale
in gold rs they occur the price OF gold and foreign
exchange would have long since reached rat'
sufficiently high TO have materially checked ou
imports and Increased In corresponding rate
our exports The price Of gold Is now governed
by the demand for the purposes stated, ana th'
foreign balances against us are paid a. before
shown, by the sale abroad OF government ant
other securities at a discount of about forty pc,