The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-04

0pp4rouUy
never more scarce ~ apparent scarcity 10 the United
States IL attributable 10 high prices, 70 IT. uncertain
vslps ana g its inactivity Money by no means BE-
ton, Of Us volume The reverss IL more likely 70 Be
true. especially When = q generally the case high
changes Money b IN demand a the present Time
so much n move crops 70 bold them, not 10 bring
them q reasonable prices within the reach OF
but 10 withhold them from market until large
Of prices can be established Let the great staples Of
At such prices whs the producer is fairy remu-
nerated, will increase consumption and exports; let
capitalists be assured that progress towards stable
has Is 20 be uninteruped and money considered
scarce will be found be abundant The actual legiti-
in 1880 when millions nS q mann and bsns
notes were Ram. an smpe Circulating medium, and
IL excessive. Throughout q considerable portion Of
tho best grain growing sections Of the United
States there has been during the past great
plant oil scarcity OF money and yet single article
Of agricultural product. except wool, to BE- sold
there for which there was not purchaser At than
remuneratng II not exorbltant prices There was
lack Of money in these sections but lack OF products
10 exchange for it. Tho hard times complained Of
were the consequence OF short crops aud not OF de-
hcent circulation. To the farmer no had little sell
and much to buy, increase Of the circulation would
yet by In such circumstances the policy OF
traction has met with q condemnation second only to
that which has received at the hands OF spectators
In stocks. Next TO the stock board Of the commercial
metropolis, the opposition 10 the policy Of
OF short crops the people been less prosperous
than heretofore. Unfortunately, in the Same sec
harvest Vns1tlSIActOry,
and tho demand. not only for ! cessation
o. contraction, bat for an increase Of paper
demsna no matter from What quarter comes or by
what interest ained should In the opinion OF the
Secretary be iniexibly resisted BY Congress TO in
giving relief 10 the country, would be to roser the
N order 70 cure the disease. 10 stay tho process
OF conraconths ear will but the way for
INCREASE Of circulation the next Whenever the policy
Of reducing the paper circulation Of tho country with
donod, Is 70 be unprecedented that the demand for an
viii b rresistibe and that tho country win
or later wnssp tbs sa Be-
pshed By eevating the currency by lessening vol
um. for Congress % de.armns That tins question lrs
wsi be determined promptly ana wisely tho Secretary
IN the night direction during the past year, but
there 10 SIN In the United States plethora Of paper
,ns coin no, premium. s now o s sos forty
per cent over legal tcnder notesf that
bah tariff be: PROVED gow,:ss: 70
gard 10 tho 10 which ihey shall put their surplus
mesnss that business 10 speculative aud uncertain
that expenses OF living are driving thousands into crime
and making dishonesty excusabe while honorable men
OF hunted means Indignantly and justly complaining
them handsome supporti Money may be inactive.
ba y NO, scarcs is inactivity & in fact the result Of
discount Of thirty per cent and which may By chance
OF policy increased to sixty per within the next
which look into the future ana which are needed 70 de-
veiop the sumberrg rcsoues OF tho country Let the
% capital and enterprise feel that the currency has come
IN steadily coming. 70 the shard PAM Of speco and
there will % stimulus given 10 enterprise and labor
wh en- VIII bsBish All plants Of : scarcity or money
IT. then. be admitted that the paper circulat on Is
rsssa !. spped 70 ;ho notes 81 the national banks
instead Of tie Unted States notes. and thus . large
g o. g the o. T ms
Ia ,nporAncs requires thai snail receive more definite
Prior 10 1884 the bankss issss,oas Of the country
with the exception of the Bank Of the United States,
created ~ The States and were sabisc. 10 State
winch general exercised control The
rgot Of TIE states create aud manage them had been
long coneeaed hst no spterferencs with them BY Con-
gfess no decision ~ lie adverse
ssi.usiouai'v Of their issses were spprehendcd
rnsnnca that syrtsm Of internal aAn,ion must be
sdspied for the support Of the government and the
naasenssce o. ts osediL and that this would Involve
tie nscessts of nstioasl 81 uniform vsiue
sud urssabted sovency To this Necessity united
sxpeden j the National banking system was created
destroy the state banks inurousiy TO affect
hes sesses bas furnish, threngh their agency
,bs, Of nsw which mlgn be orgsU,zsd under
"a. pesmsnert ionai HANK note circulation Had Il
sns va. brink The banss under the con.
tse ofs fra<rsi government f.r tho r.rtose Of Dc.
never have been saapsd Nes,ch OBJECT avowed
snsniea by 10 Trend. and no such effect was ansc.
Iasea ~ the banks With that spIrn OF patriotism
whlch Uss % rsrksd a sTacirs,,c Of tho people OF
the Noth durpx thswss. the stockholders Of tie SAFE
~ es-a'@r privileges possessed by them under ss
iass, and va connection With the ne~ banks
orgsniaca under the law. became efcent aids In nego
,ilabg rsbAo loans and sus'snns the pubic credit.
TO al banking systems under which circulating notes
issued there grave objections and u there
nane ~ existence In the unxed Secretary
wnulA hesiise 20 recommend 10 endorse the
most perfscs that been devised. Tue question
a. DO oos.aered however 10 not whether banks
shou created. but whether the national banking
q lie county ara IN view of the relations that the ma
onsi hanSs sustain 90 Tho government IGNORING In this
courscsoe the Question Of coed iailhs the Secretary
Hnsr fu ne
should he sustained. lncy are fnteivovcn with All
hr1nehea q business and are 20 directly connected wn
the credit Of The government thar they could
ncs he de-ucysd without plccpiating upon the
county nlapciai troubles winch It y now In no
reos rhen The linton Sian have been faIl, restored
and al the siaes shall have attained that substantial
Property which their great resources nid the energy u
Their people sooner iaer them. may
psrnafs be Tor CONGRESS 10 consider whether the
The prcsen, s not favorable lime 10 con 'idcr ihs
question. Tho condition u our political and financial
pei he naliopa banks or any consicerabe number Of
them % call IN their loans and put Their bonds upon
We srss for .ns gses q scvs The %ssns %
Indispensable The public innd y too sensitive,
business TOO unsteady and sns political fsure :. too
TEN has ssco@pli.ssi All ,as, was anticipated By
ualssd States nosss. su, seveni Ssyoad CUES.
has s.n. note psnss ana saved poss holder:
from losssA II has Ricsa IN regulating domestic
changes snd furnished the With valuable
financial agsntA Had u not been adopted STATE banks
would have continued - long they tolerated. 70
furnish tue country with hank In most or the
banks required cepos stocks for the
security az their and 10 thosc States where sccur
4 " vas required tnsfs Limit 70 the smouns Of
bonds thai might - deposited ssd consequently no
limit shs smour Of notes that might BE- put 10 circu
aoa In other ssasss there wss security beyond the
capitals Of the hanna frequently cnrsal and The partial
LIABILITY d stoc khodsrs gepsrsfy deeepsise Who
sstlass che srtent Of me INJURY vhch the people and
4 has IN fnxfs
ons wthoss any ether Restrictions than enforced
by state lava had been permitted dorns the
~ the 61 Al hnsing suspended specie pay msnta aud
thereby bssn relieved lrou shs necessity ~ furnshng
evidence Of selvsn<y, banks un~kny or dshonc~<ly
managed would have stood % isvs with those which
were managed vi~y snd Honestly. While the latter
would have found "a dican 10 keep her within
reasonable niis stimulated, they would have bean.
M and