Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-10-25

tity Of the circulating medium Is am
pie FOR the needs Of the population,
there is great industrial and CONNER
cial prosperity. In countries where
the friction is great, owing to the want
OF the OF Of commerce, there is tlle
least prosperity, as In Ireland, Turkey,
Mexico and the States of South Amer
lea.
Ihe inherent and mighty force be-
longing to a bountiful supply of the
circulating medium is illustrated by
Mr.. Carey from our own war. Be
fore the rebellion broke out, he says,
the Government could procure the
amounts which it required only by
paying double interest. After 1861,
however, the Treasury obtained an
the supplies it needed, and furnished
in exchange a machinery of circula-
ton which cost it nothing, vet which
gave to the people q power unsur-
passed in history. The Government
stimulated the circulation of this mex
pensive medium; and with its aid,
says Mr.. Carey, sit was enabled to
claim and receive contributions OF
food, machinery, service, to the extent
OF a thousand millions a year, Not
withstanding these enormous de-
mands upon the people, at the end OF
the war there was less individual debt
in the country than ever before. Ev-
| erybOdy paid his debts during the
war; and the abundance of currency
gave men activity and energy to
trade, that the prosperity of the ma
ton alone enabled il to sustain the
burden Of the greatest struggle OF
modern times.
Mr.. Carey, then, advocates a supply
Of the OF Of commerce in reasonable
proportion to the public and private
requirememets of the people. But by
the existing banking law, he says
there IS a mOnspOly Of the power to
furnish this oil, or a circulating cur
rency, in the hands of a few bankers.
He asserts that seven-twelfths of this
monopoly are controlled by the mon
! ey-lenders of New York and New
1 England. These sections of the cOun-
try, however, have the least need of
50 much currency, because the pOpu-
latiOn is dense and private credit is
universal; but still they mOnOpOlize
it, to the injury Of the remOter parts Of
the Union, where money is scarce and
not to be procured at the highest rates
of interest. In many parts of Utah
wheat is the usual legal tender OF the
country, and other agricultural pro-
ducts r also used.
The abolition of the monopoly crea-
ted by the banking law is strongly
urged by Mr.. Carey; and the Treas
ury policy ought to be one which
should furnish currency sufficient to
diminish the friction existing in so
large a portion of the county, and to
enable every man to find at home
prompt payment for his labor and its
products.
The capital and thus the circulation
OF the national banksare now limited
by law to the sum of three hundred
millions Of dollars. Mr.. Carey would
remove this restriction. a sufficient
number Of banks was long since or
ganized to take up the whole three
hundred millions Of capital allowed
by law. These institutions have a
monopoly of the banking business.
Now, instead Of this, every one who
wishes TO go into banking should have
the opportunity to do so, provided
that suitable general regulations over
the business are maintained. But
there should benO monopoly of buy
ing and selling money, any more than
there is Of buying and selling wheat.
II there were a free banking law, the
amount of currency in circulation
would quickly reach the wants of the
people; and afterWaFd If would adjust
itself to their wants according to the
natural laws which, when not inter
fered with by arbitrary restraints, reg
ulate the expansion and contraction of
the currency.
1t has been objected that the people
cannot be trusted to determine the I
amount of circulation which they re-
quire for use. Mr.. Carey replies TO
this, that no one will be tempted by /
the abundant supply of circulating
notes TO pay interest for the employ
ment Of more Of them than he finds
advantageous for him in making his
exchanges. He says, also, that the
power OF export would grow with the
of circulating notes; hence,
there would be no danger of a rise in
gold premium so as to advance the
price Of ali commodities and prevent
expectation.
What the country most of all now
needs" says Mr.. Carey, /" is diminu-
ton of monetary friction. Let il have
Lhat-let u people onc again be en-
ibled to find at home the machinery
Of circulation for which they are now
compelled to look abrOad-and then,
rom hour to hour, there will be seen
growth Of individual and national
orce so great and so regular as to war
ant the belief that the day is fast APP
preaching when the precious metals
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