, 1873-11-25
MONEYAND COMMERCE,


moro poclho 0sPeot 10 Eno c0mpltclti0ns With
Spain, gold was lower and stocks highor.
In the local market money continues tight,
but It is nov to great oxtont healthy atrill-
goucy, caused BY tho activity in the packing buBi-
ness.
Now York exchange Ia moro plenty, owing to
1arge shipments Of hog product to tho East.
Tho nominal quotation for aalos between banks
to-day was Zoo pcr $1,000 premium, though there
was little offered ut that. There is, howovor, q
reasonable. prospect that exchange will soon be
In favor Of Chicago and against Now York, in
which caae It would hayo q tendency to mako
money castor horo.
BOUTWELL, ON FINANCES.
II tho Hon. George 8. Boutwell, bad not once
been Secretary Of tho Troasnry Of tho United
Btates, and for number Of years controlled and
dispoaed Of the hundreds Of millions Of tho pub
lio revenue in moro summary manner tltan any
pthar financial nutoorat In tho world, his viowa
pn finance, as Expressed In his looture in this
ulty on last Saturday evening, would not be
worth moro than passing notice. But, coming
as he does with this prestige Of his former posi-
lion, and especially at thta junoturo, whom 1t is
believed that few weeks honco Congress will
be engaged IN hot dobate on cortaiu financial
measuros, hs opinions would socm to call for
some further consideration.
In regard to tho proaont volume Of paper
money, be arrives at tho conclusion that It's de-
preciation below par proves that
THERE 1s TOO MUCH CURRENCY.
The recent pAnio taught the great majority Of
had thought other1iHo, that ono great defect Of
our currency system Is Ito cast-iron rigidity and
tho legal limitation Of its volume. Dut It alHo
taught them that tho caueo Of its depreciation
was in the fact that 1t Is not redeemed in npeofo
according to tho contract. at tho time OF its
issue, aud that oyory g1eonback is = repudiated
promise Of tho Government to pay money. It
must be borne In mind that We have no real
business on credit on promises to pay money.
But In the panic, when the credit Of individuals
and corporations collapsed, the Government
credit, though suffering from reputation OF
promises to pay, mas tho best TINT WAS to bo
notes. Tho forced legsl-tonder Of Government
notea had shut out tho supply Of real money
that would have como from the rest Of tho COM
nlercial world to pay for our imuenBo crops. In
this emergency, people trfed to tranaact the
vate and corporate credit, as shown In tho in-
orease Of oheoks, drafts, notes, bills, and other
evidences Of dobt just before tho panio. It was
soon found, however, that this kind Of currency
and National Bank notes, and, whom ono or two
failures occurred, tho foar that this immense
amount Of private and corporate promiaee-to-
pay-money could not. DO cleared with the small
volume Of groenbackB and bank-notea turned
into panic. II there is any lesson to be learned
from tho recent panic, it Is that in seasons Of
8 active business Che volume Of Our paper money
ia too small and inde1ible, aud that it
is deprecinted because it Ia not redeemed
In specie, but also TINT tho moro this arbitrary
exclusive currency is increased, the more will it
be dopreciatcd. Tlls, then, ia the dilemma
which demands that re should got ont Of this
tun,hsau ts,tn ~ anu @nsaSon1am Oh pE'ncpes oy re-
spEcTE PAYMENTS.
~, but on this topic Mr. Boutwell'g ideas are as
nioglcal as on the cause OF the depreciation Of
the currency; experience has taught us that.
MonaSs aeonoa fof o
because az shfoTd people SEQ that II will bo
more pfohtable speculation to hoard the currency
ma approaching 30 fast than to
hold any kind Of commodity. This
vas tne e9pef1ence IN 1911: when gold declined
tfgm ~ ~ september to loS15 ~ Docomber.
., 1t WAS also one OF tho causes that prolonged
ne oppression IN tue recent panic. Even A1r.
boutwell, aunlta thnt--tO use his Own words
"thore will be gradual pressure upon oyory
man IN onsnese while this procoas (of tha de-
eane Of goid) goek on And yet Mr. Boutwell,,
e1ter al MS presumption to bo an authority on
hnance, Gun see no bottor way out Of this di1l-
pand until It. hi.3ll make a0 great distross for
the repudiatoa promises of the Coy
ernmens up to PAT with gold:
i. .-0s..:-sAA sAA ~ .o.4ttAA
make ma the value OF promise that is mover full
nlied equal 70 me thing promised; IN short.
that non,payment snaN ne equal TO payment, for
Lma is me ioeleai CONCLUSION OF Ills 1dea e1-
pressed as follows:
By nc increase Of nu5sne by the Of e
KY o. sae county, y ths Esmova grsaaaly el tho
1as .ns ~ IT, sae OF tas isom 5sar to
Countries We sha IN perod Of ~ e.nnot t'eg sav
whether it viii b one wo, three, or i've years but IL
period Of time,-ws shall reach the point whsn coin
and paper Will BIO commercially Of tho aaue value.
With his eye fixed on this chimsra, the great
Groton inancier contemplates. with compla-
cency the alternating oran OF speculative feyor
that will come,-one ycnr With the rise Of gold
and Of panic chill tho no1t with its decline.
Notwithstanding the experimentation which
Nr. Boutwell, lays so much atross-that iu the
last five years gold hns declined from 14O to 10,
1t Is an unavoidable conclusion to any reason-
able peraon, that gresnbacks and gold will noyor
come permanently to par except by aomo acl
Of the, Government, either to redeem its notes
he way wey: tAAA ''''A ~D0 e'' 'A'A' 'D' u
During Mr. Boutwell's administration Of tha