Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1873-01-08
CLEARFIELD, Pa, WEDNESDAY, JANUARY 8, 1877

this country generally would bo will
ing TO give Mr.. Boutwell, orany other
Secretary such extraordinary power.
Mr.. Boutwell, assumes that the Gov
ernment will never abandon tho use
OF national bank notes and undertake.
to issue United States notes in their
place. Ho considers they arc both
necessary parts Of our financial sys-
icm. In'~nother part of the report
he admits, however, that both were
exceptional measures, growing out of
the war, and that they must be "sub-
juct 10 such changes as the changing
condition and opinions of the country
and people may demand; that they
will remain part of our public policy
until the financial consequences of the
war disappear" According TO this,
then, Mr.. Boutwell, is not 80 sure that
our present currency system ought not
TO disappear with the financial conse-
quences of the war, Notwithstanding
what he has said elsewhere about the
system being excellent and establish
ed. In truth, tho Secretary has no
cloar ideas, as we said before, on the
subject, and only wants to drift along
with the power to regulate the cur
rency and money market as he may
wish. But at the bottom Of all his
crude reasoning il is apparent that he,
like the Comptroller Of tho Currency,
is warm advocate Of tho national
banks, though it is evident he secs
no way Of reaching specie payments
through these institutions. lie is con-
vinced Of the necessity of keeping the
legal tenders in circulation for that
purpose, and OF making them the rep
resentatiye of coin values. Here is
what he says on this subject 1.-THE
argument in favor Of q paper currency
composed in part Of United States
notes is strengthened by the aid which
may be thus furnished in resuming
and maintaining specie payments
Tho plan is, then, as far as the Secre-
tary understands it or has ventured
to mention it, for the Government,
when it shall be able, 10 pay the de-
mand legal tenders in coin, and for
the national banks, when prepared, to
redeem their notes either with legal
tenders or coin, as they may choose.
This ia the mixed system proposed, as
VIC may call it, Admitting that the
Government may be prepared some
day to redeem its own notes, when
will the national banks be prepared to
pay specie or legal tcndersy The
banks are very porerfh, and are NOT
ia.eiy to toiliingiy submit to anything
that lcould reduce their profits. TO
have in their vaults an amount Of coin
or legal tenders sufficient TO redeem
their notes, would compel them to
hold far greater sum Of dead or un-
profitable capital than they are now
required to hold. The national banks
look only 10 their oien interests, and
they find these in an irredeemable
currency, with the smallest amount Of
locked-up capital TO represent that
currency.
1t is difficult to see how this seesaw
upon mixed paper currency is to
maintain specie payments, if even we
can reach specie basis with them
The scheme is all theory. We know
OF nothing like it in practice. II
might succeed, but we have our icurs.
1t is at most merely an experimental
system on an important and vital mat
ter. Mr.. Boutwell, seems to have got
bis idea of an elastic currency and
control of the Treasury Department
over it from the operation Of the Bank
of England on tho gold and discount
market when il raises the rate OF dis
count. The action of the Bank OF
England, however, is another thing.
1t does not regulate or affect the
rolume Of currency, except 80 far as
making gold or money dear for time
which checks the outflow of specie
and speculation. This is elasticity in
another sense, and has nothing to dc
with the volume Of circulation gcner
ally. The Secretary has a scintila
tion Of light as to tho real and great
difficulty in making and maintaining
specie payments, though he dwell:
little on that. The drain Of the pre-
cious metals to pay for tho balance oi
trade against us and the interest or
our Indebtedness abroad is that diff
Guilty. To recur again 10 tho idea Of
an elastic currency, VIC might ask i
il ,ro,ld not be better 10 make legd
tenders convertible and rec0nuertlbi,
into United States bonds at any tim,
and to given amount, the bonds &c
ha~-a ratn nf interest ihnt conld cnsily
be calculated, and the interest paid tC
tho timo of conversion. TThe New
York Mercantile Journal has steadily
advocated the adoption of this plan
for many years,] If currency were
too abundant, and, as consequence
interest low, people would take ur
bonds for the higher interest on them
and if on the next day, or tho next
week currency should bo scarce OF
money tight, to use Wall street ex-
preston, people would convert their
bonds into legal tenders. The mar
ket would regulate itself, and would
leave the Secretary of tho Treasury
to attend to his legitimate business
without interfering with the trade
and values of the country. If wo arc
TO have paper money this certainly
would be better way of regulating il
than Mr.. Boutwell's plan of elasticity
and balancing between two kinds OF
currency. Our financial system un-
der the present management is in q
crudo and abnormal condition, and
the sooner we find some way TO get
out Of it the better. Tho great want
OF the the time ia an able finance min
ister and statesman ut the head Of the
Treasury Dcpartmcnt.---NeD Yorh
Herald.
OPEN Your SHUTTERS. IA writer in
the Health and Home very properly
crilicises the habit, which prevails so
universally in American, OF shutting
{. Il.