The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-05
S393,14S,70O
Total increase.

power or expansion. The whole amount must be
limit cannot be exceeded matter how argenGy
more may be required. During the summer months,
when there Is rest In almost ali branches OF trade
the whole circulation was In market seeking en-
poyment and now that aatum mas come, with Its
bonnteous haryests, wnen the farmer seeks to
interest OF his capital for the whole year, when hun
drels OF millions must be distributed throughout
same unvarying amount OF currency to use.
There are two kinds OF currency in use; one
by the banks. One kind would seem to be enough.
The best should DC preserved and perfected; the
Applying the test nrst to the government issues 1t
IL noted a. once tnat they are not redeemabe, and
that no provision has ever been made for that pur
pose. the very moment they are made redeemable,
they will cease to answer tue purposes OF currency;
for after they are redeemed they are In the Treas
ury and cannot again be paid out. except upon APP
preparations made by law, in accordance with the
constitutional provision, and consequently cannot
again % put IN crcans,on except Is %
government so that government circulation Is not
convertible. ana therefore u not elastic and cannot
be made without drst making radical change in
the organization OF the United States Treasury, by
which Il SHOULD De converted into huge banking
and Otherwise perform the functions Of q national
bank.
redeemaDe; and, II the legal tender notes were out
OF the way would actually DO so, ana beng issued by
Institutions In sympathy with trade, would contract
and expand IN obedience TO the law OF supply ana
demand 30 that they would also possess the element
Al to toe comparative merits OF the two kinds Of
currency, an impartial consideration would
probably decide in favor OF bank CIR
uatlon, principally because 1t would pos
exisenciss OF trade. II government issues could be
made 30 possess the same power Of adaptation the
CATION however. cannot fail to develop the fact that
there "a no branch OF the fiscal service adequate to
Country rsaaSes. The treasury system Is so - arb
trary In It's collections and disbursements, 80 little
In harmony with the business interests OF the CON-
muniiy. that IL frequently aDsorbs large amounts OF
currency ut most inopportune seasons aud dis
burses them with Just as little regard to the wants
rs issues large amounts would be presented
for payment when money was plenty; put
s Of 1ado would s sne
ments OF the government there could be no certainty
that II would nnd It's way back again when needed.
the United states are regarded by business men as
constituting powerful, and, at the same time, q
very uncertain clement diiiicuit to estimate but
which must necessarily be taken into consideration
M ali tner business transactions 1T II but justice,
however, to that the Inconvenience and defects
inherent IN the present system have been obviated
far as possible h tae present administration OF
tae department. an Raeto they could not be OBJ
waited entirely TIE. awe been reduced to u mini
mum.
50 long, therefore, as the collection of the reve.
nues Is liable to be process Of contraction and
their disbursement process or Inlation the agen-
eles through which collections and disbursements
are effected cannot be regarded as suitable agencies
for furnishing sound currency TO the people,
The argument that the government should furnish
the currency In order that 1t may realize the profit
upon it, circulation "a a common one but viii not
bear scrutiny. There Is no profit to me government
on the circulation OF an Inferior currency. Only
sound currency will promote the material prosperity
OF the people, and the government can realize no
profit from anything detrimental 10 their interests.
A currency, therefore, government issues are not
profitable As loan without interest they are
equally Improbable because they injurious TO the
national credit and add enormously 10 the expenses
or the government.
II, however, It is possible for the government to
comply with the conditions necessary In order to
furnish sound currency, It at least provide for
the withdrawal oil ils own notes, and prescribe the
conditions upon which, and the agencies through
which better currency may be PROVIDED. As before
stated there should be but one paper currency In
tue country, and that should enanate from a source
that IL Influenced by aud IA amenabe TO the lawSof
trade No check or limitation should be imposed
upon IL other than the law OF supply and demand.
FREE BANKING.
The banking system now In operation under the
the act OF Congress 10 doubtless an Improvement
upon the condition Of things that prevailed prior to
most OF them can be traced to the evils OF an ire
deemable currency. Abuses OF various kinds are
practced or tolerated, during suspension OF specie
payments, that would disappear OF themselves IN
healthier financial atmosphere; and, as observation
and experience bring 70 light defects they may be
corrected by judclous legislation. Any radical
changes now would afYect so many and such great
interests. that 1t would be safer a wiser 10 build
upon and improve the present sys - 50 as TO bring
fully up to the requirements OF the age and the
try, than 10 undertake 10 bula up now one. IL
vertble and elastic currency In any volume that may
be required by the BUSINESS OF the country.
NO human J, intelligence can OK tao amount o. cur.
varying aud IL never nxed II Congress limits the
amount, there VIII always be tlQse who win be dis
purposes of contraction or expansion. And 80 long
rs the volume OF currency depends upon Legislative
enactxement, uncertainty ana instability Will per-
wade oil financial operations.
II, however. notes for circulation are issued by o
ao 20 q se ans
the prompt and easy conversion OF their issues Into
coin on demand, no other limit 10 the amount OF
such notes need be liked than that imposed By self
interest. II taere Is = legitimate demand for
rcncy the notes VIII remain IN circulation long
not s1cn demand the notes wIll he hurried home
Tor conversion INTO cCln. In this WAY the business
demand for currency wa get rs supply and the sur.
A self adjust ng system Of currency Ia the only
one that 10 adapted TO the cxgcuces OF trade and 70
nj lhis time. whether this result eau be reached
fore We return OF specie payments. " possible az
all n 10 ony possible through the agency ~ national
banks. TAe machinery OF the government n hot
adapted ~ such ends. And further. N possible, 10 N
70 ony upon We asopu.n o. pqe,y rnc sa w
payments IL must he the gradual Development OF
process which shall absorb legal tenders and put
IN their place paper currency which snail al an
times anu under All circumstances lie excnanaaGle
fos coin, citae ~ paper legal tsn1ersl or Of gold
u payer currency which shall gradually increase,
while the legal tenders for ifs redemption shAli
gradually decrease "a suca ratio - healthy de-
pland ior banking facilities may determine.
Where banking facilities were already abundant
there would be M lpdncement for the establishment
OF banking Institutions for the issue ~ currency
upon conditions that would inevitably diminish the
volume 81 lawful money applicable 10 fts redemp
ton, sad sradusly out surely enhance tie cost Of
m wso,s o. 70 psrs Of basssng iacinnss ior ms
legitimate demands OF business. TIE necessity for
banks and cnrreucy would justify the increase Of
pank circulation, Notwithstanding the fact that ~
sucn Increase the baraen Of ~ reeenpton would
also be enhanced.
Tho entire south and many portions az the West
are very much an need 81 tue fSciliuss aud advan.
tags- 20 10 derived from properly organized bsnx.
ing Institutions ana their nccsssatins would Justly
them In dellDerafely adopting measures 70 supply
their wants. the dlfect tcnaency OF WHICH would 10
to hasten the return Of specie payments ~ the man
indicated 70 W.T. By the increase OF bank nose-
and the absorption OF tue sgal tender notea A the
former increased the lafter would diminish AZ
lawful money became scarce 10 value would -
enhanced and would gradually approximate 20 par
| VITA gold. Thus specie payments MAJ DO reached