Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-10-12
THE FINANCIAL PAN &c.
A Leading Merchant ON the situa ton
To the ITninn and American:

A Leading Merchant on the Situa ton
To the Union and American:
NASHVILLE, Oct. l1.-Mr. Editor: The
miserable panic through which we are pass
ing has caused sudden withdrawal of cir
culation from the channels of commerce;
the stream Of circulating notes, which we
have called money, is about dried up; the
transit of obligations from place to place
has been arrested; and produce, which
should be available for millions, is unsEail-
able In the hands of owners, and In nuIher-
GUS cases unavailable in the hands of for
warders.
The distrust as to the safety Of institu-
tons of deposit came of the defalcations
and robberies daily brought to light, and
quickly eliminated in 3 sudden and frenZied
panic, and a rush being made in all direc-
tons by depositors, the result was . general
suspension of cash payments. This was al
most inevitable with 80 of every 100 of the
National Banks. What has thus occurred
can again occur at any time while
the present so called system of banking is
allowed. Now the great question arises
How is this almost inevitable interference
by the banks with the daily business of the
country to be overcome? The paper circu-
iaL.Ou Vi JIo Olll6u ObdboS IcpIGScuL5
part the debt of the United States to the
owner of that circulation, and is good only
because the credit of the United States at
home and abroad makes it good. The
United States Treasury has become the
great savings bank of the people, and should
be so dealt with. The present plan or ar
raDgement Of depositing bonds as securities
for the issues of National Banks, should be
alrz Nd FaA IL
all artificial and of no earthly benefit, ex.
cepting to the capitalist who is enabled to
draw DOUBLE interest upon ninety per
cent. of bis investment, and single
interest on the remaining ten per
cent. On the part of the Uuited States
it is an absurd acknowledgment that her
bonds are not sufficient guarantee for the
amount on the face of each bond.
While the debt of the United States shall
continue to exist in the shape of bonds, the
owners thereof should receive the interest
agreed upon in the issue, and nothing
should exist in the United States ss paper
money other than the direct issues from
the Treasury. The bonis should be con-
vertible and exchangeable into currency at
al times, and the currency should be con-
vertible and exchangeable into bonds, at all
bllnoo, Wy bAo pdIuoub vi aCCTuou luI6robt
ct the time of exchange. Under a mon
etary system of this kind, the volume of
currency would be regulated by the de-
mspds of commerce, and business of all
kinds, during seasons of activ-
ity in transactions, because of
the movement of crops, the obligations
of the government in the shape OF interest
bearing bonds would be returned to the
treasury for currency. When the currency
bad performed its functions it would be re-
turned for interest bearing bonds of the
government. The United States would save
annually about tNenty million of dollars
now paid to wealthy capitalists to use them
as basis of banking, and confuse and con-
found the business of the country every
few years or ofteDer. Under this manage
ment for circulation, and gradual return
to gold basis, by payment of small notes at
least in gold on demand, such hateful and
preplexing panic as we now witness all over
the country, would be an impossib enter
prise in the hands of rings or of any other
monstrosity of our day and generation.
3. d.