The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-12-04

- AAS' StANAAo uuN bhuhGLbs Ab tuo CltCu'
lation Of bank 10 a source Of profit and
as the managers are usually disposed 10
oblige their patrons by loans and accom-.
datlonS, II will never DO wise to allow
banks and parties who have pecuniary
interests at stake to increase or diminish
the volume Of the currency In the .coun-
try at their pleasure; nor do I find In .the
condition Of things law orrule on which
we can safely rely.
Upon these views form the con-
clusIon that the circulation Of banks
should be fixed and limited, and that the
power to change the volume OF paper
IN circulation within the limits estab-
lished BY wshould remain in the Treas.
ury Department. A degree In the vol
ume Of currency Is essential for two rea.
sons-hrst, the business oil the department
cannot be transacted properly II q limit
Is fixed, and the power TO raise the cir
Eculation above or reduce It below that
limit Is denied. A rule Of this nature
would compel the Secretary to accumu-
late large currency balance, and to hold
1t, as otherwise the credit Of the Govern.
ment in meeting the ordinary claims on
II would be at the mercy OF every serious
business and political revulsion in the
United States or Europe. Especially
would this be true now that our ordinary
currency expenditures are greatly in ex.
cess OF our currency revenue. Secondly,
there Is necessity every autumn for re-
moving the crops without delay from the
south and west TO the seaboards, that they
may be in port for export and consump-
ton as wanted. This work should be
done In the main before the lakes, rivers
and canals are closed, and yet It cannot
DO done without the use Of large amounts
Of currency.
In the summer months funds accumu-
late at centres, but the renewal Of business
in August and September gives employ
ment for large sums, and leaves little or
nothing for forwarding the crops in Octo.
Der and November. Nor would this diff.
Guilty be observed by permanent increase
or a permanent reduction oil the volume Of
currency. The difficulty Is due to the
natural order Of things, and increases
with the prosperity OF the country, as
shown in the abundance Of It's harVests.
The crops cannot be moved generally by
the aid Of bank balances, checks and let
tiers Of credit, but only by bank notes and
United Stat eS notes paid at once to the
producers. This money finds its way
speedily into the channels Of trade and to
the commercial centres; but If 1t be al
lowed to remain for general use, after the
reason for its issue has ceased, the value
OF currency would be increased perma.
nenuy, and the year following the same
process would be repeated with the same
results, and thus would the country de-
part more and more widely from the poll.
cy OF resumption. The problem Is to find
a way Of increasing the currency for NOV.
ing the crops and diminishing It at once
when that work is done. This is a neces.
sary work, and inasmuch IS 1t cannot be
confded to the banks, where but In the
Treasury Department can the power be
reposed. While the currency revenue
was in excess Of the currency expenses, It
was practical to accumulate large balances
in the Treasury during the Summer, to
be used If necessary in the purchase of
bonds in the Autumn, thereby meeting
the usual demand for currency at that sea.
son oCthe year; hereafter, such accumula.
ton must be made by the sales Of
gold in large quantities during the
Summer, when business Is least active,
may yet always be consistent with
the best interest OF the country. Reliance
cannot therefore be placed upon the abili.
ty of the Treasury TO accumulate cur.
rency balance each year Tor the purpose
indicated.
The argument in favor OF o paper cur.
rency composed in part OF United States
and in part of National Bank notes, is
strengthened by the aid which may thus
be furnished in resuming and maintaining
specie payments In the view am now
to take, l exclude the idea that the Gov
eminent will ever abandon the issue Of
National Bank notes, and undertake the
issue Of United States notes in their place.
The result OF such policy may be fore.
seen. The people. deprived of the facili-
ties for business afforded by banks, would
seek relief through State institutions, and
without much delay Congress would con.
cede to them the right to issue notes for
circulation. This concession would be
followed by surrender Of the general
Government OF all control over the paper
circulation OF the country.
The true policy will be in continuing
the National banking system, without,
however, yielding an increase Of Its issue
in proportion 10 the volume of paper in
circulation. There are two efectual and
certain ways OF placing the country In q
condition when specie and paper will
possess the same commercial value by
diminishing the amount Of paper in circu.
lation, The difference between the com.
mercial value oil paper and coin will d.
minish, and by pursuing this policy the
difference disappear altogether. All leg
islation limited in operation to paper Is.
sues of the banks or the Government,
whether bearing interest or not, and
which IN effect shall tend 10 diminish the
market value Of coin, will be found upon
analysis 10 contain plan for contract.
ing the value Of paper currency,
and all legislation so limited which does
not contain such plan will prove ineftec.
.tual. Accepting this proposition, and be.
lieving that the country Is not prepared
to sustain policy Of contraction, 1t only
remains Tor me to consider the means by
which the value Of our currency may be
improved. The basis OF policy Of i'm
provement must be found in q steady re-
fusal to add to the paper in circulation
until It Is OF the same value substantially
as coin. This being accepted as theset-
tied purpose of the country, there can DO
no permanent increase oil difference be-
tween DaDer and cOin. and An onnortunitv
to DO given for the influence Of natural
causes, tending upon the whole to better
financial condition. We may count, first,
an increase OF population and the distri.
button over new fields Of business and
labor: secondly, In the South especially
the number Of persons having property
and using and holding money will in
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