The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1872-12-12

4 anu " tlo COAuleECia4 ceDlefS, uut II
allowed to remain for general use af
I ter the reason for its issue has ceased
the volume of currency would in
crease permanently, and the veal
following the same process would hs
repeated with the same results, and
thus would the country depart more
and more widely from the policy oI
resumption. The problem IS to finC
q currency for moving the crops, anC
diminishing it at once when the work
Is done. This Is q necessary work,
and inasmle as il cannot be confin-
ed 70 the banks, where but in the
Treasury Department can the power
De repOSed ! While the currency
revenue was in excess Of the currency
expenses, as was practical to accumu-
late large balances in the Treasury
during the sumner, to be used, II
Z necessary, in the purchase Of the
I bonds in the Autumn, thereby meet.
( ing the usual demand Of currency al
that season Of the year. Hereafter
such aecumUlations must be made by
/ the sale Of gold, and the sale Of gold
in large quantities during the sum-
mer, when business Is least active,
Z A0N always DE GOudA5LEuL
the best interests OF the country; re-
lance can not, therefore, be placed
upon the ability Of the Treasury to
accumulate currency balance each
year for the purpose indicated.
THE TRUE BANKING POLICY.
The arguments in favor Of paper
currency, composed in part Of United
States notes, 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 that 1 am
now 70 take, I exclude the idea that
the Government will ever abandon
the issue of National Bank notes and
undertake the issue United States
notes in their place. The result OF
such policy may be foreseen. The
people, deprived of the facilities for
business afforded by banks, would
seek relief through State institutions,
and without much delay Congress
would concede 70 them the right to
issue notes for circulation. This con-
eession would be followed by the sur
render by the general Government of
all control over the paper circulation
Of the country. The true policy will
be found in continuing the national
banking system, without, however,
yielding to the claim for q material
increase Of its issues in proportion to
the volume Of paper in circulation.
There are two effectual and certain
ways Of placing the country in con-
dttiOn when specie and paper will
possess the same commercial value.
BY diminishing the amount of paper
in circulation the difference between
the commercial value of paper and
coin will diminish, and by pur-
suing this policy the difference will
disappear altogether. All legislation
limited in its operation to the paper
issues of the banks and of the Gov
eminent, whether bearing interest or
not, and which, in its effect, shall
tend 70 diminish the market value Of
coin, will he found, upon analysis, to
contain plan for contracting the
volume Of paper currency; and all
legislation SO limited, which does not
contain such plan, will prove inef-
fsctual. Accepting this proposition,
and believing that the country is not
prepared to sustain the policy Of con-
traction, it only remains for me to
consider the means by which the
value Of our currency may be I'm
proved. The basis of = policy of i'm
prOVement must be found ia q sturdy
refusal to add to the paper IN cireu-
lAtiOn until 1t Is Of the same value
substantially as 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
De given for the influence Of ma
tural causes tending, upon the whole,
to = better financial condition.
We may count first among these the
increase OF population and its distri-
button over new field Of business and
labor; secondly, in the South especi-
ally, the number of persons having
property, and using and holding mon
ey, will increase; next, We may antiC-
tpate more general use Of pApeF IN
Texas and the Pacific States, By which
practically, for the rest of the coun-
try, the volume Of paper will be di-
minished and the quantity Of coin
increased-tWo facts tending tC pro-
duce an equality Of value. The influ-
E4Lo VI u9LuLAl Will
In some degree by the
increasing facility, for the transfer Of
money from one point to another, and
by the greater use Of bank checks and
certificates Of deposit. The rapid
transit Of merchandise, Ia bringing
the period of its consumption nearer
TO the time of its production, is an
agency Of a similar sort, giving to il
full weight.
IMPROvMENT PROBABLE
/ am prepared to say that the ex-
perience Of the last three years coin
cides with the best Judgment I can
form, and warrants the opinion that,
under the influence Of existing natur-
al causes, our financial condition will /
improve. During the last
fiscal year there were several circum-
stances Of unusual character tending I
TO eounteract the natural course Of az ]
fairs. Our exports Of cotton fell of |
S37, 900, 900, and there were excessive I
imports Of wool, tea, coffee and sugar. I
The stock Of wool in warehouse on .
the Both OF June was sufficient for six 1
lcOnsum FtiOn, Of sugar for ~ I
month"; OF coffee for FIVE months .
and of tea for l2 mOnths.l In the or
dinary course Of trade the importation
Of these articles will he small during /
the current year, with consequent I
favorable effect upon the balance be-
tween this and other countries. This
Of the wants Of the cOun- 4
try in connection With the decrease
0f our exports, augmented the bal
uf fHaAa ,nrn0NwA dnFfwrO d
nand for coin, and advanced the
price. Notwithstanding these adverse
Influences gold has averaged, substan-
Tally, the same premium from Jan.
to Nov. Of the present year as for
he corresponding period OF 1871. Not
iOubting that natural causes will in
lime produce the result sought, it Is
ret advisable to bring the power Of
he Government In aid Of the move
nent as far as practicable.
The revival Of our foreign COM
neree is one instrumentality, and
)erhaps the most efficient one Of all.
Z the annual earnings Of American
'essels were $50, ,OOO, 900, instead OF $50
OO, 900, the difference In the amount
4 exchange available abroad would
meet a large part Of the adverse bal
nee in ordinary year,. The expert
nee Of Europe tends 10 show that the
bility Of country 70 maintain spe-
is payments Is due largely 10 the
onditiOn OF It's foreign trade. Next,
very measure when increases or
improves the channels Of tranEpOr-
alton between the seabOaFd and tue
ottOn and grain-growing rrgi0ns OF
IIe country, or lesselis the cu-t Uf
-eight~, aids something 10 oar cdpa-
ity 10 compete successfully iu ihr
markets. Of the world Finally, those
treasures which sncOursg- American
especially 81 iron. wool
nj cDttOn, and discourage the i'm
OF like products, effect favg-
bly, the balance % rIsde, aHd help u,
lWsrd the end we seek. This STATE
lent in these parts - o general slate
lent of q policy thar, IN my opinion,
Tilf aid the country In Tescfnng n
onditiOn when Il will be practicable
} resume and maintain specie pay
rents. Anticipating that day, I anti
pate zisO Lhst the burden Of resump-
on will rest upon the Government.
There are nov more than 200
anks in the country, and eauDOt
nagIne a coDditiOo ~ things 80