, 1873-11-19
M0NEY.AND COMM ERCE.
MONETARY,


wan tho further ADVANCE ln tho price OF gold to
ITO, probably in consequence Of tho hollieoront
tonc Of public opinion tn tho Cuban oueatlon.
Even If hll this talk about war should rosult in
nothing III TINT dlroction. It will at loast, divert
tic public mind from tho financial puzzle. md
mike an cxcuso for tho paying out of moro
greonbnoks IN tho nnvy repairs, nlll both OF
thcse things will sip to overcome the pnralyalB
resulting from tho panic. ),
Tic high rates Of II TO per cont por month
for money nro still maintained IN tho open mar
ket in this city, but tho supply OF funds la eyi-
denty increasing,
Now York exchange is still 30 scarce that tho,o
are no aalea botwocn bnnks aud nenrly all
the banks arc shipping currency to Now York to
mako exchange.
PROSPECTIVE FINANCIAL aonEMEa IN CONGRESS-
Several prominent Western Senators have al-
really been taking Timo BY tho forelock, by
ayowlng thor purpose to oppose the schemos Of
liko an avalanche on Congress- aB soon as
as e0s Senator ssonpos orton naiea.sa tsT ahxs hs
purposo to that effect. Our dispatches from
man md Garfield have expressed similar views.
We happen to know, a!so. tint scuntor Logan
Ia opposed to tho iHsuo Of my moro greonbaolB,
but that lkc Mr.. Garfield, ho is in favor Of FREQ
bAuA!HE+ IL III YTOpnplo tIAL II tuGf0 lB my SUCH
tremendous pressure brought to bear on Con-
gress for currency imitation, as ig predicted, It
will come almost entirely from tho Eastern
States. The recent crisis has demonstrated
that tho 1usiaess Of tho West, being based on
visions, wool, lumber, &C., *&c., is On d much
soupder basis than in the East, where capital Ia
30 largely invested in joint stockB and socuritios
that have declined much moro In prico than tho
products Of tho West.
1t is possible, however, that many Of those
who are expressing their opposition to currency
initiation do not know what would mako u cur
roney imitation. On this point, It would bo
veil for them, before they moet IN Congress- and
begin to talk aboutit to get clear understanding
Of the fact that 1t would be impossible
to produce currency imitation oxcopt by an
increase Of greenbaeks sufficient to depreciata
aocurcd BY tho deposit Of bouds) is impoasble
without an increase of grecnbaclss first, because
tho bank notes ara reasonable In grcenbacks,
nnd, 1t tho value Of the grconbacks ia sustained,
thero can bo TO depreciation In tho value Of the
bunk notes, and, consequently, no intuition Of
tho bank currency. It is plain, thon, that there
ran be no danger in authorizing
FREE nANKlHa. IL.
clauses in tho National b1rronoy act which ro-
strict tho total volume Of National Bank notes to
ss54,0O0,0o0. Those restrictions, ought to
be romGyea thss because as they stand
the privileges Of National Banking, and bccauso
their repeal would permit tho people to hhvo
just as much currency as they have capital to
pay for. We know thcro arc many people who
fancy that # United States bonds can DO depos-
tied In the Treasury aud so per cent of circuln-
tion drawn against them. this 80 per cent OF cur
rency may be used to buy moro bonds, and those
bonds DO also deposited to got moro circulation,
In ''intlation Of tho currency" Now, any man
who gets this moggot in his brain should ca1 to
mind the fact that In this process the Govern
ment would simply be swapping ono form
e. qs''' for Boga aS and aapsne That IN
each swap tho Treasurer takes margin OF 10
per cent mud looks it III vault where 1t Is not
available for any purpose Of hypotlecation. The
Government is responsible for tho redemption OF
another foIm Of Government indebtedness. It
Ia plain that there would hc no increase Of out
standing Goycln nmont obligation in this process
# nanh notes T. for bonds s Hd thsss
roula turn larger proportion Of the capi..
there should rel to EoN moro currency
ea ase' tho ban notes Ssssss would dopreoate sueen
to cauBo a reconye1sion OF the capital from bank
notes into bonds, because tho bonds would not
bo deprecated. We eco no difference in the
principle between dcpoaiting United states
ting 20 per cont OF circulation ngaiust it, and de-
posting tue same bond in a bank and getting q
loan Of bauk credit to the same amount. The
currency and tho bank credit nre alike availablo
Of credit, but neither ono is IN increase of
capital Tho United States bonds, which sone
people fcar would bo tho means Of making
currency imitation" under FREQ banking Law,
must bo held 1o.o some.chere, and, wherever held,
are nearly always used al basis Of credit upon
which to borrow circulating capital Of QUO kind
or another. FREQ banking would not lead to any
more iuAatiou Of circulating capital than there
iB now.
%, SPECIE PAYMENTS.
Below no print tho letter of d correspondent,
"X," in regard to tho plan OF Mr. Ropes. OF
Boston, for resulnlng spccie payments. Mr..
loo complicated oyor to secure ndoption by Con-
gross, or to secure the ludorsemeut Of the public
7otAe K4ito, " 7As CAieaso 7riSuns ..-,z -. ~,
financial opidrnict is satisfactory TO get tho well con-
saerod sews Of .Loughtfa! nun like Mr. Ropes who
successful practice, and who is ut tho time fur
enough removed from tha vortex IN which We aro
whirg to give him, in measure, the attitude Of v
cool observer, ruther than u comuatap III this Lie
70 follow lin undcrstanaingly. it may be necessary
which ho publ'Ansd h few montLa SINCE, and which
then attracts! mueh attention, although II came too
ase ~ tho 70 a5t sess1oh OF congress 10 give any
Il wau, IN short to have the Government issuo now
e Ste T. sse 81
s5,0no,Uuo. These gold greenbacks 10 bo put up nj
old grcenbacks, which were to DO destroyed
It Will be seen that 10 contraction, unoss volun-
tary unc would follow the tssuo Of these gol potcs
aud that the ntst uctua resumption Of s500 200 could
not until tho expiration Of two years. aud then
only at the rate Of sy0 900 per Ono great a
Yantage Of this plan Is ats very gradual opsat!ou
auotlcr s its absouts certainty. Ouce out The gold
gfcenback mus! DO paid. No action Of Congress- OF
bankruptcy Or rupadiAtiou; and utter having main.
taucd faith wheroyer the SPECIFIC promise to pa5
gold has been mate, through all the Yicisstudes o
war, 1t cannot bo doubted that the nation could md
would rodcem this comparatively insignificant sum M
times Of peaco.
A D pructical complement Of the ecbema in secur.
ing the resumption Of the National BaAks, M. Hopes
proposes Bureau Of Redemption in Now York. iu
whirlI the erteRt of It's current and ctfh
prudent hr!its. tho Treasury shall tako up in New
York ali National Uank notoa presented hrre giving
cuch bauk thirty daya to come forward and redecl
It's circulation, under peuay Of forced Hala Of ita
United States bonls .,.
The oIoct Of this would, Of cuurso, 10 10 give the
banAs the advantage Of tho doyern,,enta advancing
funds, fur thirty tlays, lpstead OF forcing them u