, 1873-11-23
FINANCE.
Lecture Last Evening by the
Hon. George s.
Boutwell,.
The Difficulties in tho Way Of
an Immediate RcSump-
tion Of Specie Pay
mcnts.
Free Banking Involving an
Initiation Of tho Curron-
cy Not the True
Policy Of the
Country.
His Views on Convertible Cur
rency, and On Issuing the
Treasury Reserve.
The Practice of Paying Inter-
est on Call Loans
Deprecated.

~N~ SA@ VIVA AAS&tA8
Deprecated.
Tho Hon. George s. Boutwell,, ox-socreta:y Of
the Trenaury, lecturod yesterday evening at tho
B., Union Park Congregational Church on Finance
md Tho Panic" He was introduced by Alderman
Sherwood, and spoke 40 follows:
Mr. 8ourwELLtg Address,
When we aso III difficulty, ladIes mud gentlemen wo
inquire naturally for the cauac aud acck 10 ascerain
Il IT. 10 Tbs f0Fse Of due to
through which tho country s passinR inc1up men to
sheae nqulrcs have como 10 state tho Views have.
hopc Of course, Tint may load your minds 10 CORE
spending conclusions; but At least that 1,fnay offer
suggfsi1'ns whle followed by yonr own reflections
Eetnaln in error.
PAPER CURRENCY,
IAo ftaemcnt Is hardly open to question, that our
passd With any Which the country has ever before
In tho manner In which tho pooplo havo treated It
during those two months, and especially during tic
last weelta IN the month Of sopomber. II tho cur
could not have dealt otherwise with what might hayo
teen 70 the possession Of individuals aud Institutions
Institutions closed as fur as possible their doors ani
Of, Of .hn.. us =, who III remsmber Tho year 1e57
year 1857, rcco1ecs very distinctly TINT Tie public
course IN regard to the paper money OF tho country
paper money in tl,or possession, proceeded without
delay to pay their debts, and, II they bad something
Z onn h ng
donce needed tlink, Of tho value Of currency aud
this without reference to the question whehor tho vol
Those Of you who have observed, in general why
even what las takon place during tho lat i've ya.r
s,n nSea ar . sas in tho tnsEo IL
90, supply, and i may 10 said. ! tGinE,
1S for s IL Il. Sss 1Sir, r. T. Gsa scyst the s
for the business Of tho country tor three months il
the year. heEcabonts It is In ezcesa OF tho husineas
theIs.boats, there appears 10 bo scarcity. -
These faots, addressing themselves to the daily or
yearly experisuco Of man, have lca many 10 deninnd
and have to say, In to that c1 TINT cur
siastic and that o6aervaon l. squals true IN refsr- %
snco 70 paper-moncy. md to coin. The general fact
ready rsferrod will bear witncss, that whatever oas-
deity there i9 to currency operates inyerscy to tho
Ta0s M s' Of that 4 haT
%, and when thcro is necessity. for currency,
ths aupply not only appears to diminish, and usually
have ls II is nature. aud matter Of experience In
It's operation eas liable to tcse unEavorablo transi
ao1 ha Saer h tho ro5S %
whose currency ia exclusively coin coin.
ra- III, oa aysEa3 n1a9E =; o1sSs Ill., b,n,. .novo-
thera Was panic, whonevcs serious demand for
money arose. tito hants naturally diminished their cir
ea.s e chef " With as rect denand
for coin, or In the minds Of men foroboded dcmnud
for cola. And that condition Of mind va
System, that wheneyer there was . sesious do
1nand for money 1t was followed by demand
the banks for the redemption Of their paper in coin
aud therefore, long 40 thoy redeemed thoir paper
1hf TibaYNf In In o7ta
who possessed captaand who, Judged By their means,
would, With time. under ordinary circumstances, be
bankruptcy only by tho anspenuon Of tho hanks.
Our s'srreneys et such = aort that, II ,ett to tho
natural operation f tbs ho1s would bo no. de-
their in coin, The condition would bo otherwise
may AK. and It III ono Of the toplca
that propose to eonstao1, whether our yol,
Tho only rule, fur discover, that can bo mp
piled the daily experience Of The street. 30 long
commercially, compared with coin, Ito volume OF
paper money IN circulation is o1ccGs!ve. Therefore,
duced but when consider proposition Of that sort
We sre compelled to copaider tho cost OF reducing 1t,
and the advantages to 10 derived from the result IN
the end And, considering thia subject In thnt light,
have 1eeu copelIod to reach the conclusion that IL
though tho volume Of paper in circulation is excessive,
measured by the rule that have submitted 10 yo
Jet the expense Of contracting It, In its effect upon the
volume Of business in tho country IN TIA effect upon
tho ability Of merchants. mechanics. and nanufactur
ers to prosecute their business aucccesfuy whs tho
ths rsv.nues of TIC country and, consequently. impair.
sbst ths advantage Il roacAng ths point when vs can
resuns
at tina earlier thHp could otheswIse resume them
doea not Justify the undertaking. How, thcn, arc we
10 reach the point when our paper shall be ii equat
policy. Tho fact whether bunk ahal Ply specte for
IL nates on demand ~ not very important fact a
say so pssson h.s3ng note can purchase coin
the tlme will como when our bants, by compula1on,
Ss1ss: syns either as H9' 1atoa Ga nAss sates aes
notes g.. Or apasa u thsy my choose,
that u desired when The doverrmout Of tbs United
1tatca shall be In condition to redee it's own notes.
known as greenbaeks III coin leaving the banks to pay
Of business BY tho Development Of ths resources Of
the country. BY tho removal gradually Of tho baanca
sna S se
shal1 In period Of timo,-1 cannot ~ whothcr II
s b one tx9 three 2. vs yesrs but y Period Of
Will b commercially Of the sama value. Undoubtedly
there Will b
upon svery in business whie this process goes
Il Will bon pressure that has already hcen aorioua
during tho AHs dva Sleoio has been reduced III
10. and u, and, having mastered 80 much diAicuty
BY tho process that am considering, hnye the
evidence Of experience that what relnana oE this dni
ouay can DO mustered by the ea1ua process without
thuesng SERIOUS Injury upon tho bualnosa comnuni-
y q upon tho revenues OF tho country. Theseforc.
whs1 shese !. natural and feaaDls way open to us
W1noh involves no sartnuB injury to any branch Of
nuEnes. think 4 ia to be preferred to fore!be
auenon py LAW Of tho volrus Of currency which. -
Ms y cAn foresee, evUnta will 10 attended With
.ts1os1 evii, to ths huslne,a community Aud
Ehsn no have 1naasespd what romans Of
bs dtcuty there Will be certain relief to husi1,es.
and anAntal affairs by tho edition which the uso Of
spse,.s viii mako 70 the vou,no q currency in tho
hss an addition to tho volume Of CURRENCY There IL
ew,-it can not bs sated n1athsmatcaliy, but It 10
sbsdient 70 principle which We can ct'mprehsud;
h.t pFiaepe il that when ws add .pprauiaby to the
lume of currency IN ths country, whSthst that addl-
ddng psopozonAtay tho property and business Of
~ country, we increase the prIcss Of property ia
sptlon corresponding to the Increase of currency:
vaon we bare Iasaod this trsasitive ~.
~ 4 your1s of currency increased bearp the kAts
fs4,H te TIA popUy md bus!nsss ot tha country
n44As volume Of ofrsua1 bafatd i4 indtssse aid Ia
116s as6 1stsS1 u ~ satsts1t ah& iAAss-