The Cairo bulletin. [volume] (Cairo, Ill.) 1872-1878, 1873-11-30
Tue FINANCIAL SITUATION.
: LETTER II.
70 the Editor Of Iux l,vLLETIv.

To the Editor Of IHx BrLLETIv
Tue frierds Of immcdists resum ption
seed 10 sss,p.Ds that The Volume u The cur.
10 cy 10 not excessive; and cettainly the
government is under Al least Sn infh,d
obiiss ion not msteri lily TO contract 1t
until tn. public expenditures arc reduced
TO their normal amount; that Is 10 gay
- that point where they are 'uti ,ien
SIMPLY 10 support the governmei viii
dignuy aud cunomy. The taxes paid ! y
She people Of tho United States in 1870
fJr the support Of fciersl, state and mum
eipuigovsrnmentsgs rcyst tho en- rmou'
2 cum o. .'sh, hundred aud alty.oio II IL
lions, sat were exclusive Of the sup OF
chIrches and privae charities. W tn %
vast n tsxstiJn .. this drawn aiuully
, from the pockets Of The Pcoplc-' evied
.. AbnormAlly high rates, aud vi on III
pricss prevailing spproIima,ed 10 wal
prizes, lit would be ~ inde!,nsitll On b"
part Of the government material y to n
crease their pressure by a contraction 81
ihs currency, as il would Ia TO icrIdule
the ~ ymen, Ia coin vi tho iu,crs,t up. n
Nh public deb.
Blu. the volums o. ths currency is cx.
csssive. that il, would be, if Ne take,
and bu.insss-0 f the, country wcrs'in lhcl
natural State, and a radical and exicn
sivs contraction is al Indispensable pre-
lminary 10 u safe and permanent resump
tin Any plan which does not cohteu
plate cGntf~slion to y point consislen
81 once With = norm Al stat, Of tho pub it
expenditures. ard n reduction If he leye
Of Pricss ~ the general nvera.o. %
prices ia other countries measured "a voi'
--oush, " be called "a plan ~ resum'
without essuming"
Precisely wha, the necessary proportion
between cash and psrer il, in sound ,Pc.
Gle pay ing system, III. impossible 10 stat
Il will he ADMITTED, however, ,h 4 dollar
for dollar 10 NO M re than absolutely shfc
while ia come extraordinary contingci Gle
iC1,igh. b. lees thAn ssfe. but II it be-
concedel that resumption may DO cstat.
ishsd and rsintsined upon fun u!
~" han ircd and hfty millions, it is noc
ess>ry 10 procure the coin AMI il Is i'm.
portant - re,nsn.bcr that tho sum to Lt
provi1et mu { b, in addition TO AID ca
elusive Of tho stock now led hy III, ma
iiIntl treasury br tn, payment vt inter
est On the pubic debt.
Whore and how is 1t TO 30 procured
Tne expmis OF god AL silver lroE
1851 " 1874 inclusive in excess of tue i'm
porte, we're six hundrel aad fifteen nil
lions II dollars, an average of nbou. I'll!
si1'mi lions year. Since lsj 20, there ha'
b,cn but n ,inglc year, 1861 in which ih'
exp ,rts Of coin h.ve no. considerably ~
Gee 10 the Imports and tbs 10 nj export
in chcrs II The imports since 1870 to III
cnd Il the Il cal year 1917, were ono thou
sand and thirty millions. To put "a ST.
to this steady outward a,w Of the prcciou
me.Sls-ifi IL chull be done without con
traction Of IN, currency, which IL cou'
no, be-wou,i be ~, ca'alnitou, To- u
country as violen, lcg.lizci contractio
The proofs, Aba, hen IA" panic of SCI
tenbsr had 80 reduced the price, VI COZ
moiitie. in Am rici Nsto mas tho expo
talon Of coin from Europe profitable, '
expectation began, and 1t was estimate
thu, tho aggregate sum exported from L
gland IN Os.obor was considerably oy
Isn millions. Bat w,th revival OF CO
q lsnce and trade, and nm -sdvarce in
pri 60 OF comm ,diis. AMI Ti,e ALA
the n2nsL.al s,tps Il rg1ti, tno NV
wsris AMI oaIy- cease !, bt has agr
been lirned b.csw,rI upon Europe.
10 not likely, therefore, that gold sui.i ne
for . dursble resumption can DO provii
by . reversal VI Tho coin exchanges N /
natural course of our ioreign trade.
Il has been proposed to 90 into Eu
pan markets. and Lorrtp coin ,uili ,ic
brssams, Tbls proposiuon /. not liz
TO receive serious consideration, TO- as
from jhe almost InsurmoIntable diff u
OF procuring go larsea sum by loans
this time, in the money markets
irope, 1t 10 highly improbable that ,
psopie viii consent TO tax ,hcmse.,
Twelve or ftteen millions year in e
~ such purpose
There 'ecn', then, but single meth
BY which coin aud paper can lie brou.
10 . rssland permanent par, and Il Al
hy rigid and pi.'les contraction OF
Pspsr circulation, until ,he pressure "
prices reach - = point go 'x'r me a.
only to stop TN outward Now Of Gael,
also To st,rsct IL hither from foreign CO
trie'. TLi' ~ ,hs sim II, oLviou.I ne
cry plan OF resumption !, sod ali O,
ms,hoi', however, plausible in theory
iaisllib y fail in practice.