Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1872-12-12

VINO, outslde OF THIS special training aud expo.
r,once Is ignorant, and machinery being given
also, the intelligent person, proceeding fol
a term, will improve and simply the methods
OF production to such a1 extent as to cause an
addition to his wages. Even ono hundred per
cent. represents but q small part OF the advan-
taScs gained; there il the speoiel training and
knowledge OF the IGNORANT masses Of tho im-
provcments made. This truth, considered with
reference to q single American laborer, and
then multiplied . hundred thousand times. re-
presents the advantage of America over
Europe and Asia in their contest for national
peaceful supremacy in the Affairs OF the
world. Thus is America solving the industrial
problem lem, OF the agos BY e1toTting cheap prodc-
remarks may be found in the opinion ontcr-
tain that the tariff system of the country has
contributed largely to the general prosperity,
aud that such general and continued prosper
ity is the only basis on which even a wise finan-
cal policy can rest.
TEE CURRENCY AND BANKS.
In discussing the other changes caused by
the war, issues Of United States notes aud OF
notes by the national banks should be c0nsitl-
cred together. Indeed, they arc necessary
parts Of our financial system. Neither can be
substituted for the other without general dis
turbances to the state bank system, and to
any system of private banks. The substitu.
tion of an equal amount of United States
notes as currency, would be cause OF serious
evils and losses. First, tho national banks
which otherwise would be thrown upon the
market, absorbing domestic capital, or, If pur-
chased abroad, adding by the amount Of inter-
est to the annual balances against the United
states in our account current with other
countries second, one Office or . bank, to ag-
greg1te the capital OF small possessors, and
thereby to furnish means in aid Of important
commercial and financial undertakings. not
only at the centers, but in the remote and
newly settled parts of the country third, the
national banks are used as aids to the Govern.
meht, which otherwise would require large
increase in the number of designa ted deposi-
tories and proportional increase of the public
expenses without the least appreciablea dyan-
taso fourth, they facilitate exchange between
sections OF the country, and thus diminish the
cost OF commercial transportations; fifth, they
are generally less disposed than private par
ties controlling equal capital, to demand exor-
bltant rates OF interest.
But it does not FOLLOW from these views, nor
would it follow from those Of similar char
acter which might be presented, that the eye
TEN is perfect; nor does it follow that the is
sue Ut notes directly by the government
should be surrendered and the business of fur
nishing currency yielded to the national
banks. The circulation Of each bank is fixed
arbitrarily by rule Of law. The aggregate
circulation is, therefore fixed sup. and con-
sequently there is practically no reserve to
meet the increased demand for money occa-
aonaliy to extraordinary events at home or
abroad, and arising occasonally with the in.
coming OF the harvest. The old state bank
termed elasticity" but that qlahty,
found in that system, was the priil.
cipal source Of financial disaster. IN
der that system, in obeyance of the present
demand tor coin, there WAS practically no
limit to the issue Of paper currency. Amin
crease of circulation was attended and follow
tions, consequent demand for coin drawn
from the bsnks to meet balances abroad, q
simultaneous reduction Of the paper currency,
and the consequent distress OF merchants and
bankers. The circulation of bank is a
source Of profit, and the managers are usually
disposed to oblige their patrons BY loans and
accomodations. It can never be wise to
allow banks and parties who have pecuniary
interests ct stake to increase or diminish the
volume OF currency. in the country at their
pleasure. Nor do find in the condition OF
them law or rules on which we can safely RELY
circulation Of the banks should be fixed and limited,
and that the power to change the volume Of psper
In circulation within the limits established by law
shoald remain IN the Treasury Department. 4 dis.
cfeton - 10 the volume Of currency IN essential fol
First, the business Of the department cannot be
transacted properly II limit Il nxed and the power
limit h denied. rule Of this nature would compel
the Secretary to accumulate large currency bal.
ance, and to hold IT, - otherwise the credit Of the
70 ,. in mating the ordinary claims
political revolution in tho Unitel Ststes OF Europe,
Especally would this be true now that our ordinary
currency ezpendttore greatly in exoess Of oui
sssosa's: dsss sssss !. i: n.sl, every .u.unn TO.
moving the crops without delay from the south and
west 70 the sesboard that they may be on hand for
should b done In the main before the lakes river1
and canals are closed; and yet Il cannot 30 done
without the use Of large amounts of currency. In
tres, but the renewal Of business in August and
september gives employment for large sums and
leaves little OF nothing for forwarding the crops in
be sbssed By increase Or IN;
reduction Of the vclume Of the currency. The dif-
ficulty is due to the natural order Of things, and
increases With the prosperity Of the eoun-
harve:ts. The crops cannot be moved aenerally by
the aid Of bank balances, checks and letters of cred
1t, but only by bank notes and United states notes
way speedily into the channels ofstrsde and to the
commercial centres, but It will be allowed to re-
main for general 1se After the reason for ts issue
as ,ad q Be-
same process would be repeated with the same re-
sults, and thus would the country depart more and
more widely from the policy Of reeumption. Tho
once when tiat work IL done. This = = =
necessary work, and inasmuch - it cannot be
eonhded IN tho benks where, but in the Treasury
currency revenue was in excess Of the currency
expenses It was practical to accumulate large baf
ances in the Treasury during the summer, to Be
the autumn, thereby meeting the usual demand for
currency at that season OF the year. and thereafter
such accumulation must be made BY the sale Of gold
ness s esst active and nay not Always be oonssten
with the best interests Of the country. Reliance
cannot therefore, be placed upon the ability Of The
Treasury to accumulate currency balance each
year for the purpose indicated.
The argument in favor OF psper currency COM
posed in part Of United States notes and in part Of
s bank IN. n.tes Is BY tho .d
now to take, exclude The idea that the government
WI! ever abandon The issue Of national hank notes
their place. Tho result of such policy may be
foreeeen. The people, deprived Of the facilities for
business afforded by banks, would seek relief
Congress would concede to them tho right 70 issue
notes for circulation. This concession would be
followed by . surrender by the general govern
~ pnoS It
ing the national banking system, without, however.
yielding the increase Of it's issue In proportion t.
the volume Of paper in circulation. There are two
. condition when specie and paper win possess the
same commercial value. BY diminishing the
tween the commercial value Of paper and coin viii
diminish and by pursuing this policy the difference
will disappear altogether. All legislation limited in
operation to paper issues Of banks, and Of the gov
which In effect shall tend to diminish the market
value Of coin, will be found upon analysis certain
plan for contracting the volume Of paper currency
and sN legislation 30 limited which does not con.
tain such plan will prove Intellectual.
~ nSt prepared e sustain the pS!'oy q
!::S Sss sdd &:
gpti q 6 Of no same value sab.ta9tially coin.
t. nc . e
;sss :::
81 sr t. ss: ~
:Ss sa@6ss q psSs:c:n: S:yinS Rrops:sy: a:ns :aa
pate more general use oi paper in Texs: and The
Ss d
Il + j. % 5
degree by the increasing facility for the transfer Of
use 81 bsnk chocEs and osrtaestes Of DEPOSIT. TSe
rapid tr.nsit q Iries,ns tns pe:,od
Giving those views their full weight, am pro.
pared ID say that the experience OF the last three
and The sSas undsr she naone:
2! the e1iattns n.tnsal our condition
there we're several circumst nces Of unusual char
aSter tondtnx 70 cou9teract the natural course Of
there excessive imports Of wool, tea, coffee and
sugar Tho stock Of wool IN warehouses ON the :Hhh
Of june sutriant for six months conSunptN
of sugar for f"nr aud hnlf months Of coffce for
fvo III 'nths; ant oi tea for twc'v, months. In the
articles will ne small dur ny he 'front.' yoar. 18th
consequent favorable OBJECT upon the b. between
wants Of the coancy in connection with tho decrease
OF our pOrts AMRmeQted the balance of trade cre