New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-08
CURRENCY AND COMMERCE.

Z circles Is purely commercial and in n
respect financial as some of our writer
IS seem to suppose The ''shrinkage o
values, which SO deeply concerns every
. body, is confined exclusively to commodi
ties 1t stops at currency. All the pa
per in circulation in the United States
from Maine to California, is as good to
J. day and possesses as great purchasing
power as it had before the troubles began
!. We say as good, but we might go ster
further and say it is even better. For the
market prices of all commodities have
either fallen, or those which previously
had tendency to rise have been checked
8 for the time at least Green backs and
national bank notes have maintained a
/ very strong position, and the only COM
, plant that we hear is that banks and
business men can not get enough of
them. Gold sold on the first of
September last at l15a to 115J. On
the first of October it lad fallen
to 100. 20 10. thus showing there
Was nothing the matter with the currency.
In the great financial commissions Of 1887
I and 1857, few bank notes maintained
their par value: they became uncurrent
on account of general distrust in the abil-
ity Of the redeeming power. and conse.
quently immense sums We're lost in a wild
hunt after specie. During the present ex-
element gold has kept its position as
commodity. an object Of merchandise,
but has been in no case sought to hoard.
This is. in our Judgment, triumphant
vindication Of the nationa! currency act.
! This law was designed to create curren.
! cy which would be both convenient and |
safe. 1t has answered well it's purpose. |,
1t has saved us from the complications
arising from worthless bank issues, in ad.
dition to the commercial, disasters that
afiict the whole country. The decline of
five or Six points in gold may be attribu.
ted to the same causes that have pro.
duced decline in any other article of
merchandise IA general eagerness TO
realize as means of obtaining current
funds. The reason why gold has not
fallen to par is partly that i. is generally
held by strong parties; partly on account
OF liberal shipments from Europe. and
to some extent from the fact that the bust
ness men generally had no need for it in
their daily Transactions with each other.
We have, Of course plenty of hard mo-
ney men yet living in this country. men !
who prefer government mint drops to gov. :
promises to pay. This is q mat :
Ter OF individual taste. each having the !,
right 10 decide for himself according to
lis preferences. Yet no mans necessities i.
lave compelled him to make sacrifices TO
,ratify. his predictions. and gold has o
'een freely offered in all the markets Of =,
ne country at reduced rates. ~
We have not heard OF any run upon a .,
ational bank for legal tenders outside of :,
lew York city. and bu: little there. and 70
o trouble whateve. has been experienced -
y any bank except the difficulty OF salts ;,
wing their depositors. The laws of the -
nited States can not be invoked to Iro- -
,ct this class of creditors. AS shown
Dove. the national currency &C: is con- h.,
ned to regulations for protecting note ~,
olders. Extraordinary safeguards are co,
rown around the issues Of the national -,
inks. A failure to redeem note forms ~.
basis for winding up the delinquent in tio
tuition. while deposltors have only the
cal laws to RELY upon. The laws of the ,,o
nited States are silent upon the obliga- fra
ms OF the national banks to those who Tn
trust their money with them. Hence, pa,
e recent failure of the New Orleans Ma tbo
NAL Banking Association does not dol
cessaril- authorize the Controller Of ite,
= Currency to send a receiver to sa:,
Re charge OF tina! institution. A zen
hnical default mus; be first shown. Gle.
Stat
refusal to redeem its notes can Con
ne. it is believed. give Mr.. Knox any 40"
isdlction over its affairs. And as no one
any special interest in making case
this kind. its affairs may be wound up ino'
der our State laws. or it may be forced 'oi
, bankruptcy, The bank is at variance "iio
b its depositors. Its note holders are 'no
iciently protected. They find them. liiei
'es with currency in their hands ~
TIA three per cent more than it was 6ee'
,re the failure. The result Of this dis. AZ
cry will be TO cause them to hold on sesS
awhile, leaving to others the task Of com
ting the bank in default This NAV 1ofc
lone in several ways. If there are no "o'n
IS taken to force il into bankruptcy. ~
protest of its circulation. nor anv ap qo"i
alton to State court for a writ of ,
lestration or other interference by ~,
tors, its present directors may 90 on w
realize on the assets, pay such a per poya
age as they may be able to afford, and an az
everybody is satisfied that lie has n ",cr'
ing more 10 expect. retire and shut and :
doors. This, however. III REQUIRE emit e
unanimous consent of all its creditors. IL
'sltors, note holders and all others 'Ee
ng claims. carpe
- --<s------- God
A DOMESTIC POLICY, M
&c obvious abatement Of partisan in visio,
zee shows that Louisiana no longer than