Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1873-11-12
rxVounAoEmESr ysR THE FUTURE.

The most reliable estimates place the
currency in circulation on the LIST Of Sep
tember last ut $73S, 0O0, 900. Since then coin
has been coming largely into the country
from Europe in exchange for our grain.
The forty-four million reserve of the Gov
eminent has been drawn upon to the ex-
tent of near ten millions. The November
interests have generally been paid. Our cur
rency is good and improving every day. Our
noon quotations of gold yesterday was7s. 1t
is slowly but gradually going down and the
value of our greenback and National bank
notes daily approaching. All this should
be encouraging and inspire confidence.
About all that is needed now to put us on
the direct road to a speedy relief from our
present trouble is mutual confidence. In
stead of attacking the credit of established
institutions, and spreading distrust by I'M
founded and sensational reports,
ward the most hopeful side of our
present difficulties that is consistent with
the faces. People who have no credit, or
money, or energy, are most interested in
creating distrust and Generalization, for
by such course they bring those tempo
rarily embarrassed or easily alarmed down
to their own level. The CHRONICLE has
repeatedly suggested that there was no
sufficient cause for the extreme demorali-
cation that prevailed, and that with the
ease in the money market, which was
gradually taking place, and the return of
confidence, we would soon see better times.
The New York Times of the Sd, in a
thoughtful and able article full of facts and
encouraging figures predicts that the re-
action is already beginning. We have
space for only part of the article, 1t be-
gins by showing that temporary strin-
gency in the money market was the real
cause of the beginning of the panic, which
through distrust and timidity has spread.
1t says:
The money in circulation was too little
to hold up stocks, pay for the enormous
crops of grain and cotton, and move them
to the seaboard. The panic then began on
account of the stringency in money, which
| was not artificial, but brought about in the
| ordinary course of events. Confidence has
been shaken now by the numerous fail
ures and the clatter concerning the insta-
| bility of the moneyed institutions. A re
| Storation of public confidence in the safety
of the banks and an ample supply of money
will bring about speedy recovery. AS pan
ic began on account of monetary strin-
gency, so it will end by relaxation in the
rates of interest and proofs furnished that
| this will be permanent. We have the
money now. There is more in circulation
by fifty millions of dollars than six weeks
ago. The banks have drawn largely on
their legal reserve. The government has
paid out the surplus of SIC, 100000 in pur.
chases of bonds, and has also drawn large
| ly upon the $44 900, 600 reserve. Millions
of gold have been sent over from the Bank
| of England, which are now in active use
here. The country needed more money
and it has been obtained. The truth is
that before long currency will be a glut
and four per cent be considered high
rate of interest. Every mandatory thai
closes, and every iron forge that shuts
down, instead of adding to the genera
stringeney in money tends to make il
more easy. Money is dearest when there
is the greatest call for it to use in bushes!
requirements. 1t is cheap when it SEEK
investment instead of being sought for.