The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1872-12-12


There are two efectual and certain ways of plso
ing the country in condition when specie and pa
per viii possess the same commercial value by di-
culation, the difference between the com mercial
value OF paper and coin viii diminish and by pur-
sung the policy the difference will disappear alto
getDer All legislation, however limited in its ol
Grafton TO the paper of the banks and of the
Government whether bearing interest or not, and
value of coin, will be found upon analysis to con-
tain plan for controlling the volume
SO limited. which does sU not &C contain isa such
a plan, win prove Intellectual. Accepting this
proposition, and believing that the country is
only remains for me to consider the means by
which the value of our currency may be improved.
found in a steady refusal to add to the paper in
circulation, until it liz of the value substan
tally coin. This being accepted as the settled
purpose OF the country, there can be no permanent
increase of difference between paper and coin, and
an opportunity will be given for the influence OF
financial Condition we may co1nt rst a Deossr
these the increase of population and its distribu
ondly, in the South especially, the number of per-
sons having property and using and holding mon
es Will ,nefease Next we may anticipate more
States, by which, practically for the rest of the
country, the volume OF paper viii be diminished
and the quantity of coin increased. Two facts
tending TO produce equality of value in the in
huences of these natural causes will be counter
acted in some degree by the increasing facility
for the transfer Of money from one point to
another, and by the greater of bank checks and
certificates of deposit. The rapid transit of mer-
nearer to time of its production is an agency of
similar sort Giving these views their full weight
last three years comedies with the best judg-
ment can form, and warrants the opinion that,
financial condition will gradually improve
Dnrlng the last fiscal year there were several
% eS OF cooe e o
th1rty-seven million dollars, and there were
cessive imports Of wool, tea, coffee and sugar.
The stock of wool in warehouse on the 30th of
June was sufficient for six months consumption;
of sugar, for four and half months; Of coffee,
for five months, and after for twelve months In
these articles will be small during the current
The baIance btwep bis and eihar upon
tries. This anticipation of the wants of the
country, in connection with the decrease of our
exports augmented the balance of trade; created
active demand for coin and advanced the price.
Notwithstanding these adverse influences, gold
has averaged substantially the same premium from
corresponding period of 1871.
Not doubling that natural causes will in time
produce the result sought for it is yet advisable to
bling the power of the Government in aid of the
movement as far as practicable. The revival of
our commerce is one instrumentality and, perhaps
the most efficient of all. If the annual earn
ings American vessels were $50 0O0 600 instead of
$50 900 600 the difference in the amount of ex-
change available abroadzw meet large part
of the adverse balance on any ordinary year. The
experience of Europe tends to show that the abil-
largely to the condition of its foreign trade.
Next, every measure which increases or improves
the channels of transportation between the sea-
board and cotton and grain growing regions of the
country, or lessons the costs of freghts. adds
something to our capacity to compete successfully
in the markets Of the world. Finally, those meas
ures which encourage American manufactures, es-
pecially Of iron wool, and cotton, and discourage
the importation of like products affect favorab1y
the balance of trade and help lis toward the end
we seek. This statement in these words is gen
eral statement of policy that in my opinion, will
aid the country in reaching condition where it
will be practicable to resume and maintain specie
payments. Anticipating that day, I anticipate also
that the burden of resumption will rest upon the
Government
There than nineteen hundred
banks in the country, and cannot imagine con-
dtion of things favorable, for period of years,
as to enable them, at all times, to redeem their
notes In specie only.
Without proceeding to the discussion of the
subject in detail, think that all win have been
gained that is of value when the Treasury shall
be prepared to pay the demand notes of the Gov
eminent in coin, and the banks shall be prepared
to pay their notes either in coin in legaltender
notes, and then good fortune will clearly ap-
pear in this, that paper currency is not eXclu
slvely of National Bank notes, nor exclusively of
United States notes.
GEORGE S. BOUTWELL,,
Secretary of the Treasury