The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-10-17
THE CURRENCY QUESTION.

Among the frst-class newspapers of the
country that are advocating currency re-
form, we are glad to note the convincing
and powerful aid of Colonel Forney's
Press, of Philadelphia. In yesterdays
leader, on a flexible currency, the true
remedy of our ills is most ably advocated.
We quote at large from this excellent ar
ticle: .'.
ut is impossible that the present en-
tirely anomalous condition of our financial
affairs shall long continue. With larger
volume of currency in the country now
than there was for several years before the
late panic, with the government interest
anticipated to the amount of many mil
lions, and with the distribution of large
amount on the first of the present month
in payment of interest on state, corpora
ton, and municipal loans, not half
the needed currency can be
had for the legitimate channels of
business. This cannot be the result
of accident. nor can it be a logical
result of the panic. Fortunately for
the country, Congress will assemble
in few weeks. Various remedies have
Deel plOpOSeu, anu VIC aIc ilVI MVuuSu
to any particular theory. But some system
must be adopted that will give some meas
ure of tleXibility to the currency. we
| see no good reason why from five TO eight
hundred millions of national bonds could
not be issued to liquidate like amount OF
our present six per cent. bonds at 3-6o per
cent, with the privilege of commanding
currency for the same at any time, to the
amount of ninety per cent. Such bonds
would be greedily taken, for banks
and heavy operators in money or trade
could rely upon them to relieve any
sudden stringency in the money market.
Doubtless many solvent men and
institutions have recently failed because
the best of collaterals could not be
converted except at such sacrifice as to
create bankruptcy. One New York
trust company was compelled to close Its
doors with million Of government bonds
in its vaults, because they could not be con
verted into currency and we feel safe II
saying that tWo-thirds of the suspensions
we have witnessed within the last fortnigh,
would have been averted had it been posi-
BILE to procure the currency actually needed
on government securities. We would sug
gest very large issue of such bonds, ant
believe that they would command ready
sale at 3-G5 per cent. They would eiiec
double purpose, and save the countr,
many millions annually by the restrain
they would impose upon reckless specula
tors, who can now corner grcenbacks o.
gold at pleasure. The fact that from five
to eight hundred millions Of additiona
currency could be created on de
mand would make it impossible for any
combination of spectators to lock ~
money. The utmost security would b.
given to men engaged in legitimate bust
ness on sound basis. Now the mos
prudent enterprises are liable to embar
rassment or destruction by panic created
by the arbitrary withdrawal of money
from its legitimate channels, and there is
no power to afford relief. Our currency
is confessedly insufficient in volume, anC
this supreme want must be met; but who
or what is to determine the proper volum
of currency? A solution Of this problem
by any other authority than the business
of the country itself must be arbitrar.
and dangerous. If the maximum of cur
rency be fixed by the maximum of 10y
interest bonds to be taken, trade vii
always adjust its own necessities hal
: moniously and prosperously, and with
t out the possibility of shocks or revul
sion in the legitimate operations of tn
country