New-York tribune., 1868-05-16

To this the coin ought to be added-say S2oOOOW0 az
the beginning of the war; and now probably about S2oO
OOO Including bank reserves the total CIRCULATION OF
coin and paper never exceeded s4OOCOOOo before Ine
war TXcuding the bank reserves, the amount was
never much above $3OOOOOOOO. During the twentysix
years preceding the war the average bank clrcnatoh
was less than Sl39OOOOOO 10 cannot be successfully con
trOverted that the gold silver and paper used az money
in this country at this time amount to slOOOOOOVo
we subtract from this amount our bank reseryesWnlc
amounted the Let OF January last TO slG2oooo anu
also the cash in the National Treasury i WniGh "a M az
that time amounted 10 Sl34,OOWO-We sun nave
left in active circulation more than SioOOWV. ~
rests with those who assert that our present auouh
Of currency Is lnsuhcent' 10 sno" llat ]'o pa poa
cent more currency is needed for the business OF the
country than was needed in 1850 But 1t has been as
serted that the country never had currency enough ana
that credit was substituted before the war 10 supply the
lack OF money. 1t is perfect answer To TINS that IN
many OF the states system OF free banking prevailed
and such banks pushed into circulation all the money
they could find market for Every great financial eIis5
during the period covered by the table mas Deen preeSeu
nv great Increase and followed by great ana sudden
decrease in the volume OF paper money WITHIN the Ie
rOd covered by the table there were Tour great nuasia
and commercial crises IN this country They occurred n
1887 1s 1851 and 1857. Now observe the change IN the
volume OF paper currency for those years On tne ust oi
January 1887 the amount had risen To Sl4gO0o an IN
Of nearly 80 per cent in three years Before e ehd
of that year the reckless speculation
trading which had caused the increase had resulted IN
terrible collapse ana on ,ne M nrs6 @ oi b sJ ",
1887, wild lands, which speculation had raised
to SIS and go per acre fell to u 80 ana w.
BY corresponding depression III All Dranches OF Dus
ness immediately after the crisis OF lS the BANK Clrcu
laon decreased p per cent ana Dy te emu OF Ioi5 was
reduced 10 $5s5OoO decrease OF nearly 20 per cent
So IN 1883 and IN l55 Remnseences OF 1873 ana
1890 confirm this view Mr. Garfield next inquired
whether high rate OF interest Indicates that The cur
rency is insufficient and showed that the bard times IN
Europe ar6 accompanied by low fates OF interest and
THAT the rate is the lowest In specie paying countries
and highest where there Is large volume of deprecated
paper money. in Russia Spain, and Italy" He then
investigated the OF the relative scarcity OF money
in the West and showed that It does not depend
at all on the amount OF currency. The causes OF
this local scarcity are, he said. TO be
found in the improper adjustment OF our financial
machinery and IN the great uncertainty attending our
financial legislation Itisa wosettled principle that
redeemaDle,
money centers and stay there Inc interest allowed 20
This evil So does the temptation 10 speculation ia gold ana
stocks caused by uctuattng currency But the most
serious evil growing of the condition OF our currency
Is the fact that we have fixed and determinate
standard Of value II IL scarcely possible 10 eNhggerae
rms evil After showing the cyIl OF the fluctuations IN
value OF our currency he added The vital and ncrabe
evil of ncOnyertbe paper currency II that ~ has no
eIasfiey-no quality whereby II adjusts itself to the
necesstes aud contingencies OF business The speaker
then reviewed the experience Of TINS country IN paper
money before during and after tho Revolution showed
that the clause In the Constitution prohibiting the
issue OF bills of credit by the states was inserted
i'm ms opinion. are affecting the country. He then
reviewed IA follows The hard times and de
nression OF business now suffered were by the
, reIoIntion which grew out OF the war
Its evils been aggravated ana are ID danger OF
being indefinitely continued by our unsettled currency
and bv the uncertainty OF legislation have fixed
standard of value and all trade and business are ~ he
mercy OF political sensations and business ntrgues the
evils OF which fan heaviest upon the labOrng Tho
greatest financial danger which threatens US Is that some
of the schemes before Congress may result III large
increase Of irredeemabe paper money. Ihe speaker
despaired OF any immediate adoption Of sound policy,
in view OF the chaos OF schemes before Congress
opposed especially the redemption OF the FiyeTwentes
IA years before any of them payable and nnaly
proposed his plan for restoring the standard OF
value In the form OF tho bill introduced by him on
the 18th OF February which, ~ 10 should become law,
oud he believed 20 far toward restoring confidence
and siving stability to business and would lay the
foundation on which general financial policy may be
based whenever opinions are so hatmon.ed as 20 make
general policy possible. The bill provided Tor redeem
pg grcenback, AZ the Treasury M 81 In gold for VI 80
reducing the price cent per dollar every nohh mere
after Mr. Garfield believed that such an act woulu re-
suit I'm gradual return 90 specie payments, without M
redemptiOn large amount of legal tenders bulH
he thought 70 better 20 make gold law IN OF
der 10 carry out the plan than not 10 obnin the res
The measure would ncdenty settle the questions oi IN
aton and OF the $40 bonds II would be aided by bill
lecazng for coin under which maly business
men would conduct their affairs ON specie basis.
Finally, Mr. Garfield enforced his proposition Wlth
the well-knOwn English precedent, by which IL pro.
Vided THAT the lst Of February, 1890, the BANK
should give In exchange for Its notes, gold bullion IN
ounce that the lt OF October 1870 the rate should
be 7ss cd from the Of May 1922 79s l0kd and on the
I OF May 1928 the bank should redeem all its notes IN
coin whatever the amount presented The passage OF
the act gave once more fixed aud certain value 10
money! and business so adjusted itself 20 the meas
ure in anticipation that specie payments were fully re-
smed on the OF May, 1921 two years before the time
then and the verdict history has approved the wis
dom OF the act Notwithstanding the camOr and outcry
which al first assailed it, He concluded with strong
testimony his confidence In the wise patience OF the
people under any depression which may result from
the necessary measures and with declaration for him
self OF earnest opposition to any further imitation.
The Committee rose, and the House adjourned