, 1872-11-26

nn increase in the volume Of paper currency is
necessarily En- increase in the volume Of tioating
rapital, or ''money," Many persons in respect
abla business standing IN tits city, with whom
we have. conversed On the subject, eeem to
ignore the fact that to have currency at all, We
must first have marketable wealth. floating OK
and that if we had this and ind mot dollar Of
i1redeemable paper money; the exchange Of this
marketable wealth with othsr parts Of The world
would bring the universal currency OF specie
into circulation here to tie full extent to which
We had any legitimate necessity fcr currency Of
any kind. An instance which illustrates the
necessity Of first having wealth TO turn
into currency before We can have tho
very sensible view taken by the Comptroller of Of
the Currency in his forthcoming report in re-
gard to the impracticabilty of the 525 900 re-
distribution act by which 425000, 900 Of National
Bank circulation were to be taken from banks
having more than the arbitrary proportion a.
corded to their States by lay, and distributed
among the banks in States that have less than
that proportion. It is now nearly two and g. half
years since the 454 1000 900 Of additional National
Bank circulation was authorized: and yet many
Of the Southern and Western States have not
taken their allotted proportions, thus showing
that it was not currency but capital that they
lacked. On the other hand, many Of the Eastern
States where capital is eompa5atively
low, are financially eblo to sustain
more currency than they have now. They, mt
n1a4y, resist the plan Of taking away s25,000,000
Of their circulation and holding it until tie West
and South shall accumulate the wealth to take
it. The Eastern States havo the capital and
might possibly issue more currency il it We're
not for the arbitrary legal. limitation Oh the
II the legal limit Of S354, 900, 600 to the Ma
tiunal Bank circulation we're removed. it would
probably be found that the amount Of currency
Issued By banks in the Eastern States would
increase, because capital is cheaper there, while
it is not improbable that the nu1ount issued by
banks in the Western States would diminish,
and u,a On the Whole ta9,rad it il is doubtful if
would increase much. ut least, if it
did it would be very slowly from year to year.
Those who faacJ there Is . necessity for mora
currency should bear in mind two important
government, can have currency ezcep. us they
have available capital to turn into it. Second
that IN the National Bank system the Govern
ment is al the time paying premium to private
tlonh Bank notes, and that this stimulus to the
issue Of paper money keeps al the capital ia-
vested IN bank notes that eau possibly he used
IN the form Of currency. It mast be admitted
OF depositing S and per cent bonds and getting
not only the interest these, but getting SO and
30 per cent OF the face Of tho bonds
returned to them at onee in the form OF cur
rcrcy to loan again, they would not issue so
much circulation. The profit which the Nation
al Banks make On their circulating notes is C.
bonus which the people pay to induce capitalists
to crowd the avenues Of circulation with paper
money. If this bonus were no longer offered,
or if it we're diminished by obligin5 the banks
to exchange their and per cent bonds for
and ~ per Gel IS, the volume Of paper money in
circulation would certainly diminish. The fact
is that, instead Of there being a necessity for
more currency, the aggregate volume of cur
rency is inflated nov by means oi this bonus
II it we're not SO, the specie that is continually
crowded out Of the country by the fixed volume
ATM Nh rar nn
out legislation, would stay With us and become
part Of our circulating medium.
DRAINS OF SPECIE.
Some days ago NC referred in this column of
TIE TRIBUNE to the groundless fears expressed
by Alr. Boutwell, in some Of his electioneering
speeches, and also by the New York Financia!
Chronicle and some other paper, sabout the dam
ger Of drains Of specie from tho United States in
Europe could not draw from US anything but
what was her own, and that if she did drain us
OF specie it would only prore that We had 10
right to have it. and we're irving to keep what
nercial community are just now ex-
periencing some trepidation in view
of public drain of specie from
that country but tn the honaon Tines Of
etantial1y the same view Of the case there now
that re have, of . possible similar situation
here after we hare resumed specie payment. The
Times 6ayE:
"The state OF our trade should be the only
real question to concern Us. and, if we can be
satisfied that all is sound in that respect, the
financial operations to be adjusted between
other countries cannot Affect US, except profit |
ably, since, if accommodations be sought from
as, it simply furnishes opportunities for the |
Temporary employment Of all available capital, |
with perfectsafety. and on unusually good terms.
The United States, Russia Franco, and Austria |
have all forced paper curreucies, and In Ger1na-
nv and Holland silver only can be had. B.pt no |
nation ca,l take gold from unless o0e 1t -
them or agree to lead 1t 10 them, and in the latter
case ell We have to do is to look to our own con-
venieuce and to charge SIS much as We think de- |
eirable. For the present, it is believed tho bank
accounts are still singularly steady, and the rate
of per cent can be maintained without check |
ing business. Whether shall havo to raise |
our terms must depend Oh the exigences Of our
neighbo-s, and also on the extent to which they !
mag be willing to permit depreciation Of their
various curTenclea."
STEAM ON TIE ERIE CANAL:
Some weeks ago, in connection With the en- |
dc1vor to construct boat propelled by steam |
po,;er mud adapted to navigation Of the Erie !
Canal. We mentioned the steamer Wi11iam Bag
fer as likely to be SUCCESS This boat las Just |
accomplished her return trip from New York to
Buffalo, making foar miles En- hour Those In
tezested in the Baxter are nov confident OF sue
cess ia her speed, economy OF fuel, AID prac-
ticabi!ity. Independent of the States reward, c
ccmpac- has been organized for the purpose of |
builuing boats for new transportation line, and
70 introduce steam appointments into the ordi-
necv boats that have been built. and arc build
:1g, discarding wholly the question Of monopoly.
SILVER AND 4 DECLINE N ITS
VALUE.
The substitution Of 3 gold coinage for silver
one in Germany, and tbs probability That the
same policy will BE- adopted By Holland, makes
the prospect that the price Of silver aa compared
with gold will Decline and that depriving silver
or+anf ita character naa n rjr. 1