The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-03-12
WEDNESDAY ,EvEN'G, MARCH ~.
Cheap Money.

financial questions. Ihere Is general
acquiescence in the policy of protection to
American Industry which has been en-
dorsed by the leading men of all parties.
The great financial measure now for the
first time assuming commanding strength
is that for cheapening money by enabling
the people instead Of the bankers to con-
troll the circulation.
There is no question in which the peo-
pie Of this country, and particularly OF our
own state, are more vitality interested than
in that of cheap money. There is 10
reform more essential to the public pros
perity than the release of the monetary
circulation from the control of that selfish
greed and Unreasonable stupidity which
now hold it in their keeping. The rates
of interest in New York are described by
The Mercantile journal of that city, one OF
its ablest and most reliable of its linan-
cial organs, as follows:
The rates of interest have for long period
taken OF the uct We almost fear stitt- the
co, diion of The money marke, in our own
words lest some " our reade mtv think We
have prejudic-d view of The situation. We
may, perhaps, b. Permitted 10 say-wthout its
beng Considered out of placp-that We h We not
borrowed ssioney for some yetr-, and further
more, We 90 not Intend ever to shin ~ as some
men allow themselves 10 do. We have gone 20
Tar as to say nd we do not speak at lanaom)
that We wound rather i've only on Dry bread ana
cold water than to he the seiva' of money
lenders. e trust our readers will bear this
exp anati)n of our views tud position ia MUD,
so that no one will 10 a M ment imagine thar
we have slorted view of facts because OF any
personal experience.
The New Xork Evening Post, Of Yesterdays
date. gives the Toll wing report:
80 he money stringancy continued ve'y severe
until long after the lose OF bank hours IN
highest rate paid having 'en onr-quarter of Que
per cent per day equiva ent 10 abo 1t nine y per
cent per annum At half past 'hree o'clock sock
b okers who b I'd not then made up their bank
accounts were paying rs and Interest. The
bulk of the busine since our last edition has
been at 3.l6 per day.
The New York Independent, in its moneJ
article, says:
There nas been a very stringent money mar.
bet all the week, With only occasional 10 ter.
mission in The gnarp demand from b growers
and in the exhoi bitantly high rates call
loans. The banks, while restricted ny the Ia
requiring them to keep reserve of twenty five
per cent. of gold aud greenbacks, unable 10
meet the legitimate wants of their Gus omers
and hence, the squeeze, which Will In the end
squeeze The lie out Of our business men, The
rates OF Interest which merchtrts are
compelled 10 pay on their temporary loans,
AM for the forced discounts hat are made
outside Of the inks is on an average A. per CENT
and our laws ali lh- while make it penal Of.
fence for any money-lender TO receive more than
per cent. This extravaga"t rate of interest,"
which falls with dreadful force upon that Ia g..
class OF opei ators VINO do business on mar
gin,' is the result of an insufficient amount OF
Currency for The business Of lh- community :;
and yet there are members OF Congress who are
continual making prop ,sitlons to reduce the
currency.
If this is the condition Of things in New
York, one of the great money centres Of
the nation, what may we expect here? We
commend to the Richmond Wing, and that
class of legislators who want to fix an ar
bitrary limit to the price of money by
usury laws, this statement of The indie
pendent. We have often before indicated
our views upon this question. We are re-
joiced to see that the leading presses of the
country are attending to this matter, as
shown by the quotations above. The
grand remedy is well stated by the New
York Mercantile Journal:
All that is required to set matters right land
on an enduring basis) is for the General Govern
ment TO issue National Paper Money made "a
legal tender for ALL dues, and to requisite the
volume and fla it's value by making it Interchange
Gble in sums of one thous ind dollars and i's
multiple, with government bond bearing fired
rate Of interest; say three and sixty-fiye hun
dredths per cent. per annum
Several bills involving this principle were
introduced into the last Congress. The
Hon. j. B. Storm, of Pennsylvania, one of
the ablest and most promising young men
of the Democratic party in the House, in
troduced one Of these.
Another bill, and the one which more
fully meets our approval, was brought for
ward by Hon. John w. Hazelton, Of New
Jersey, Republican member, who, with
out any great display of rhetorical powers.
is most valuable and clear-headed legisla-
tor. These bills cover substantially the
same ground, to wit: the issue of bonds
bearing low rate of interest, c nyertible
into legal tender notes, and vice versa, at
the option OF the holder.
This prneiple Of convertibility regulates
the currency as the motion Of the steam
engine is controlled by the governor. The
currency cannot be expanded or contracted
under its operation. We had occasion in-
medately after the war to advocate these
views in the West, and we know that the
people of that section are reidy to make
common cause with the South in securing
cheap money. 1t is the one crying need Of
Industry and Trade to-day.
We commend this subject to all thought
ful men in our state. We want only
union and corporation among the useful
classes to enable the people to regulate the
currency for their own benefit. We hope
the young men everywhere, and especially
at our colleges and universities, will study
this great question and come out among
the people with rational ideas on finance.
The absurd vagaries that haunt the old
school Of political economy, and now i'm
pede the progress and development of the
country, cannot stand moment in the
light Of modern science. Common sense is
piercing the misty shapes that wrap round
this yexed question of money, and bring
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