New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-12-24
oIRCuLI4IoI AID RESUMPTION.

ministration of the government, says:
What the country needs is q man OF en-.
larged views, clear head end practical
knSwIedpe. who will rise above all minor
considerations, and present the matter 10
the consideration of our legislators 80 that
it can not be misunderstood. ,-z-..ss.-----,
Now, if neither a loan, nor increase OF
taxes, nor an imitation Of currency will
satisfy our contemporary. why should he
not apply for the situation himself? He
knows what the country requires, and ap-
parently no one else does. Gould he not be
induced to save the country from bank
ruptcy? There are so many gentlemen Of
the same stamp, each Of whom has buchu
remedy sure to cure, that there would be
no such thing as selection among them.
Resumption or non-resumption2 Ex-
pansion or contraction? Elasticity or
fixity? These are the questions that agi-
tate the doctors. In the meantime not
one word has been said by these penny
pundits here about resumption or non-re-
sumption of our banks The doctors no
more hazard theory on this home sub
ject than parish parson Of an established
religion would call in question dogma or
a genufection Of his ecclesiastical superb
ors There is certainly as much reason
why the people of New Orleans should
have circulation Of greenbaclzs as that
the nation should have circulation Of
specie. Yet it is all the time ''hurry up
the SPECIE" but not word has been ut
tered about "hurrying up the green
backs" on check upon our city banks.
For our own part we have very little
concern for gold and silver. As uni
versally admitted to have specific value,
they are of account to settle tie balances
of trade in the clearing house of nations.
They have domestic value as commodi-
ties of expectation. AS domestic cur
rency they are inadequate and, therefore,
useless. We desire currency based on
national ability and equal in value to gold
or silver, but without any obligation to
redeem that currency in gold or silver.
We have very nearly that currency now,
and gradually it will appreciate to that
par. This would have seemed an i'm
prob able theory some years since, but
it approaches practical truth now, as will
be seen by the comparison of currency
with the precious metals. We should
like to see this currency receivable for all
the dues of the government, as it is paid
out on all national obligations. This would
make it a rerfect domestic currency.
There is no other need that we know of
for specie currency in this country.
With greenbacks as good as gold at home,
and exchanges based on an expectation of
larger than the imported values. we
should prefer the paper currency. There
is one consequence of currency con-
vertible into specie on demand at the.
treasury which our financial doctors do
not seem to have contemplated. There
is not specie enough in the United States
to purchase On demand all the currency
outstanding or necessary to the nation.
If there is six hundred million dollars
currency and two hundred and fifty mil
lion dollars specie, the process would be
this: To-day q broker would buy one
million dollars of gold with green
backs. This process repeated for many
days by many brokers would pump
the treasury very dry. The brokers
would resell the same to the government,
until the government, fearing this con-
tinual run, would have bought in all its
currency In what, then, would the ma
ton be better Off The brokers with two |
hundred and fifty million dollars, would |
have chased home six hundred mill
lion dollars in greenbacks. The bust |
ness public would be three hundred |
and fifty million dollars short of an
adequate circulation. 1t would have |
demonstrated, it is true, that the notes
were as good 90 specie, but as it has been
often demonstrated that two currencies
of greater and less value, respectively,
can not co-ezist, SO, whether the green
backs or specie should be preferred, the
currency of lesser value would disap-
pear. If gold is demanded for currency,
then is the gold the better, and the
currency must disappear. Such might
be the effect of q compulsory exchange
of gold for currency. 1t would dimin-
ish and restrict the volume of the
currency. The truth is, the currency of
the United States differs from that issued
by any banks in the past or present in one
important feature. The currency of the
banks was based in part on specie and in
greater part on bills payable. One item
If these assets was insufficient, the other
vas of doubtful validity. The currency
ssued by the government of the republic
ests on the basis of national ability.
Every citizen is party to this guarantee,
nd every one knows that some time or
,ther, or somehow or other, this obliga-
ion will be made good, or the currency
viii be small matter in the general crash
hat will destroy everything. We do not
are to bother ourselves about the abstruse
nd dogmatic predictions Of the financial
avans. Many of them have been
ased on currency dissimilar with
be present. No one has ever seen a 1
urrency before which maintained its
larket value amid suspended banks and {
failures. Therefore no theory {
ased Oh a circulation Of 6Gra notes will
pply to a currency issued and guaranteed 6