National Republican. (Washington City (D.C.)) 1872-1888, 1874-01-20
THE OURRENCY.

Some of the wisest of our statesmen and
6nanciers insist that we have not suffi-
sient quantity of the, circulating medium
for the proper transaction of business. By
medium they mean of course national bank
and legal-tender currency. They under
take to prove this by instituting COMPARE
sons between the past and present in our
own country and between the bank note
circulation per capita in this country as
compared with that in England and France
All such contrasts are more or less falla-
cious During the old United States Bank
era under the Presidency of jackson, be-
fore the advent of railway and telegraphic
communication, the necessities per capita
were much greater than at the present
day. Western and Southern merchants
then purchased their goods on twelve
months time. Stocks Of merchandise
were then bartered away for grain, pro-
visions, cotton, and sugar, which were in
turn shipped to New York, where they
were sold to meet the bills Of merchants.
In this way exchanges were effected but
once . year. To transact this trade large
capital in either cash or credit was re-
quired. The capital was turned over but
twice year. One profit was made on the
merchandise, and another on the produce
for which it was bartered or exchanged.
Now, this is all transformed: By means of
railways and telegraphs goods are ordered,
transported and turned into money more
readily in thirty days than they formerly
were in twelve months. Merchants with
cash capital, who purchase and sell for cash,
are enabled to constantly replenish their
stocks without taking large risks of fluc-
tuating prices. This method multiplies the
power of currency by constant circulation.
Produce and provisions, cotton and sugar
are no longer exchanged by barter, but arc
sold for cash, and consequently once year
larger volume of currency is needed for
their movement to market than at any other
period. As the harvest time comes earlier
In the lower latitudes the movement Of
ps,cxtend over nearly half the year, but
the same capital may be used several times
over during the same season. Inthe old times
this was not the case. As has already been
seen the transfer Of crop formerly occu-
pied the whole year.
From tho foregoing it is easy 10 see that
while . greater volume Of currency may be
necessary now for the transaction Of the |
legitimate business of the country than IN
1884 IS Sc, ii must also be apparent that
. Ear less sum per capita Is required now
h., IUk;lo
Of the country is multiplied many hundred
fold the facilities for its transaction have
been increased in equal ratio. Moreover,
comparatively little currency is now used
In these transactions, except in cases Of
actual settlement Bank checks, drafts and
bills Of. exchange are made to take the
place of currency in all our large trading
marts, bank notes only being used for the set |
Element of differences. ---5 80. -
This is fully exemplihcd by the transac- |
tions ofthe New York clearing house where,
In an average daily business of about one |
millions, it is very rare that four
millions of currency change hands in the |
settlement of balances. 1t is also worthy |
of notice that the bank loans have nearly |
doubled since the war, while the volume of |
currency has been slightly contracted. In
Great Britain, where the bank-note circu- |
iation was one hundred and forty millions |
Of dollars thirty years ago, It is now bu,
sne hundred and fifty millions, and yet she |
has foreign commerce two and q half
times greater than the United States But |
her hank currency is rcdecnablc in gold or
It's equivalent, Bank of England notes, which I
Are demand gold notes. The aggregated
circulation of Great Britain in gold coin and
currency combined is less than six hun |
bred millions for the transactionof al her
stupendous commerce. al .., n ~ IL
1t ID easy to see, therefore, that it is only |
Nr speculative purposes that more currency I
3 required in this country. We are in
haste 10 obtain apparent wealth by the ex-
1ansion Of the credit system of the country.
For the healthy transaction Of legitimate |
business it appears that the volume of cur
rency now outstanding Is moro than sum- |
sicnt Let this be made redecmable-thc |
national bank notes in lcgai tenders as now,
md The legal tenders in coin OF It's eqaiva
cent by gradual approaches at no distant |
period, and we shall have currency with
4 coin basis that will inspire confidence in
Ill classes of the community. 49,. ,'.1a .',ai