Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-01-21
Speaker Colfax,
THE CURRENCY QUESTION

OF the great political problems which de-
mand serious consideration at this era in our
history, few are of more importance than the
question OF our financial policy, and in refer.
ence to nonsis there more diversity of opinion
while some timid business men argue that
We must Increase the volume of currency if
we would avert panic, many fnanciers as
sert that the circulation Is already too large
and that contraction is the only true policy
Between these extremes we have any n lumber
OF political economists with pet theories as to
banks and banking; Of self ,h capitalists who
only consider what will put most money in
their own pockets without reference to the
general good and OF indi viduals not so easily
classed who all have some plan better than
any one eises TO pay OFF the national deb.
bring about the res umption Of specie paw
ments, reduce prices. and usher in a plorious
period OF general prosperity, when eyery
working man shall be blessed not only with
s'tuo dollars day and roast beef" as was
ago. hut with higher wages and 10 wer prices
than ever before.
A further expansion Of the currency is. with
out doubt, the widest and most un wise of the
schemes suggested by theorists to remedy ex
fslng evils IL might give temporary RELIEF
but would, inevitably, lead to further deprs.
cianon In the yaiue Of the circulating medium
ana more than q corresponding increase in tn.
priee Of commodities, for experience has taugh
US that when values are once unsettled bv the
rejection OF uniform standards the cost Of liv !.
log advances IN q much greater ratio than
gold b.. ~ -
Contraction would be very well il it was a
All certain that II carried cut far enough tn
bring on specie payments in q short time
IL would not result in q contraction OF credits
Of business and OF wages, and a general pro..
tration Of trade and industry. But the risk is
700 great IL has never been clearly proved
tnaf the vslume Of currency II this time Is too
great for the need Of the business interests b,
the country. and II iti net, then, by undue con-
traction, we would be AMPLY replacing q sound
national circulating medium with worthless
bank notes, the finctuating and unsafe is.ues
OF the "red dog" and s'wiid cat'' concerns of
old times. This prospect is creating alarm al =.
ready, and the Board of Trade Of chicago !,
lew weeks since passed a resolution against
the fnrther destruction of legal tenders, and
ofner similar bodies are about TO follow their
lead. =
In this, as in other matters, the safest Mia,
would seem to be to adopt neither extrems
but middle course. Our ability to paw or
tne nanonal de bs has been fally deuioustrated
ana without any serious DISTURBING ca aee 70
create doubt as TO the stability Of our inst.
buttons, thereby weakening public credit a
specie basis would be reached in the course Of
very few years. gradually, and witaout anv
snock threatening universal bankruptev. Bnt
above all, our financial policy should be d. sd
and settled Any system, even a bad one
would, " adhered 70, save rs from the pressu
nuotuation in values, and the contin ned an.
Prehension Of further trouble, which ID the
direct result OF the general uncertainty as TO
what Is to be done. One ofthe best features in
the English system is that the circulating me-
dunn 10 Increased or diminished in accordanc.
win the wants Of the country, and panics
nave been avertsd there by proper exercise
OF the discretionary power vested in the bank
Of England, when the same circu mstan ees
mere would have produced general break.
down This is one of the matters in vh,ch
we may learn something from John Bull, ana
onr legislators would do well to acoustn'
themselves with the British system, and nor.
row such OF its provisions as are adapted to
our present need. -