New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-24

a constant process Of expansion Of ii
D currency. We doubt whether in Georg
:. Washingtons time there was cash enoug
in the whole country to pay the interes
on our present national debt 70: 81
, months. Perhaps there was enough {
transact the limited business Of the time
but none to spare. Since then there hav
: been surprising changes. The Who'll
country has steadily expanded, and tn
demand for money to carry on bushes
has been stimulated by a natural an,
healthy increase.
I We have how nomina! volume O
! about seven hundred and fifty million
dollars in currency. about one-half o
which is in legal tender government notes
Probably one hundred and fifty million
dollars OF this sum is not q. any time il
actual circulation. At the same time one
| hundred million dollars OF paper would
not be too much, even with . resumption
Of specie payments. which. however. we
do not regard as of so much importance
one way or another as many Of our Demo.
cratic politicians do, or at least pretend
to. The government has provided the
whole country with a currency unexcep-
tioual in its character. and unsurpassed
for safety by any heretofore known to our
history. Extra ordinary safeguards have
been thrown around the bank notes au.
thorized by the national currency
| act. States are virtually prohibited
from creating banks of issue. which
is most wise regulation. But at
the same time care should be taken
that the legitimate wants of commerce
are supplied. If State banks are forbid
den to issue notes to circulate as money,
national banks enough should be author
lied to serve the purpose. Or, which in
our Judgment would be better still, an ad-
ditional amount in leg al tender should be
Immediately authorized to be exchanged
for six per cent bonds, on such terms as
the law or the Secretary of the Treasury
may prescribe. Purchases of bonds on
coin basis would doubtless be satisfactory
to the country that is, rating the bonds
at par, and the greenbacks for what they
would sell for payable in gold.
Of the four hundred million dollars in
legal tender authorized to be issued,
forty four millions were retired by Secre-
tary Mccullough, and the loss from wear
and tear, burning, shipwreck and other
casualties have, during the past eleven
years, been nearly as much more. At the
outset there was none too much. Since
then there has been a gradual decrease in
currency and legitimate increase in the
demand. The business of the country
has expanded, and the currency to conduct
it should be made to follow the changes.
The opponents of this policy may set up |
a cry of imitation, which in reality has no !
Ineligible meaning as applied to the reg
ulation of the national currency. For we
hold that an adequate provision to meet |
the wants Of the country can be in no |
sense regarded All Undue imitation. any |
more than the new suit OF clothes ordered |
for n healthy growing boy. enlarged to |
suit his size, can be so denominated. |
The supply of currency tor legitimate
purposes should be limited only by the
demand. 1t is not the special business of
The legislator to guard against speculation,
and it should be borne in mind that any
attempt to starve the spectators by low
liet of currency works injury to regular
iealers The increase IN the volume of
egal tender at this time would be more
ike similar Increase IN specie in a sea.
son of hard times than an excessive issue
If irredeemable banl. notes IN a season of
great scarcity. We have never heard
rom our most ultra anti.intlationists
. suggestion that the mines Of Cali.
ornfa or Nevada should be closed and
heir further working prohibited on the
,rouDd that further. production of gold
would injuriously initiate the currency.
The absorbing power of this immense
ountry is equal to volume of currency
ouble the amount of money at present
valuable for the purposes of trade, !
nd it will be time enough to raise the {
larm about imitation when it appears there
J money enough to move the immense {
rops OF the United States and leave !
nough !or daily use IN the great ;nanufac.
airing centres. Were Cong:ess &c author. t
- the issue Of three hundred million j
ollars III legal tender notes early in De. I
ember. and their exchange for six per I
enc government bonds, there would be a t
,nsibie feeling OF selief eSnerienced a. e
nee, and at the same time one million L
ght hundred thousand dollars year il
I'D for interest alone would be saved. t
JUS diminishing the necessity 70. collect. L
2 taxes in com to that amount. t
But these questions affect the circuia. a
III and supply of money. Relief for the s
INKS of discount and deposit could be a
ind in that other suggestion Of Dir. u
,utwel. that national banks be pro- r.
bited by law from paying interest on 1t
posts The banker who pays interest II
money liable to be checked out on o.
mand is always in risky position in o.
.sons of scarcity. AS remarked by a c'
Ii known New York banker, Mr.. Macy, 81
the old firm of Howes & Macy, he o.
4 not afford to pay four per cent on u
,a,, aud +l,ro,y Il l., oorrat to 1noE IL