The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-07-07


cling financial convGlsions in every civilized
nation. A mere declaration of resumption
would be simply disastrous folly. In 1850
we had at least 500 000,00 in coin. Since
then there has been imported into our coun-
try at least 100000 900, and produced from
our mines not less than $500 900 more
We have therefore owned during the last
twelve years over 81 leo. 600 600 in the pre-
clous metals. Now we have the moor nit
tance of SAC. .Oo9 in our country The
rest has gone to abide in and bless countries
where 1t is more wisely appreciated. We
must, therefore, as condition precedent to
safe and enduring resumption, adopt some
policy that will enable us to attract to, retain
In, and disseminate throughout our country
about S26O,00O,000 additional supply of the
precious metals. This is no impossible
task. 1t is practicable. but only by the
aid of the steady guidance of clear and far
craftsmanship.
COIN AS BASIS.
1t should be remembered that resumption
needs more coin to inaugurate it than to
it afterward. Once re-established
on such a basis as inspires popular faith and
confidence in its maintenance, a less amount
of coin will suffice to maintain it. Human
experience has not enabled any person or
authority to pronounce ex-cathredra the ex-
act relation that ought to exist for safety
and convertibility between the paper and
the coin currencies of any country. | be-
lieve the true test to be the limit of a coun-
try's capacity under wise and stringent laws
to maintain the constant convertibility of
Its currencies. Any country may be said TO
need and may advaRtageously use as much
currency o. all kinds as its authorized insti-
buttons can issue upon ample securities and
keep convertlole at all times into gold and
silver. Our owh experience in the past and
the experience of the leading commercial
nations for hundred years. furnish us no
better or surer test. The practical applica-
ton of this principle furnishes at once a test
OF amount and a means OF elasticity or
prompt expansion to suit the demands of
BUSINESS.
DISTRIBUTION OF THE CURRENCY.
1t is not question of distribution OF cur
rency; that can only be wisely made under
the sole guidance of the natural laws of bust
ness, trade and commerce. Congress can
no more distribute the money of the coun-
try according to population than it can
the property of the people, or the rains that
fall upon the earth, or regulate the PROBES.
sion of the equinoxes. Nearly all the cur
renCv of Great Britain is issued by the Bank
of England, in London, and that of France
bv the Bank of France, in Paris, and that
of Germany chiefly by the Bank of Prus-
STA, in Berlin, but the currency does not
remain IN those cities. 1t goes on, on the
contrary, by law as memorable as that of
gravitation, wherever the business the pro-
ductiye capital, the exchanges of the coun-
try require it. Almost its only use is as an
instrument of exchange. Exchanges are
most numerous and extensive where cap
ital is most abundant.productive and active.
The channels and abiding places of currency
are therefore never determined by law OF
congress, but always by the self created
laws of money, trade, production, business
If the United States had but one bank. and
that were located in this modest city of Sew
mour, and had sole authority to issue the
currency of the country, that fact would not
enrich Seymour, or our district, or Indiana
or the West, or impOverish the East, be-
cause the currency would inevitably go
where the laws to which refer would take
it. Congress can no more distribute the
paper currency of the country than it could
the gold and silver, and the latter is an
absurdity never attempted or demanded.
Congress may by law extend TO few in
d1viduals the advantages of the present mo-
nopOly, but not to the people generally
What the people want is currency that
monopoly can not control.
FREE BANKING.
Much is said OF free banking, and if it
could establish the true basis it would result
in incalculable benefit to the people. But the
only safe, rational and unalterable condition
of free banking should be that every bank
shall at all times maintain the convertibility
ofits notes into gold or silver on demand
and this duty should be enforced by rigid
law. and the interests of the people closely
guarded. Such system of banking and
currency would be beneficent indeed, and
would practically aid in the useful and nat
all n shxNkn <Nw.A 80
also secure so much of practical elasticity as is
possible in any good and sound currency.
In view of these elementary principles
ahy legislative pledge of immediate resump-
ton would be mere vain and empty boast
Something else mast be done to prepare the
way. Radical changes both in law and pol
icy are Indispensable as basis for improve
ment. These changes should be made TO
take effect gradually and firmly, without
shock, or surprise, or injustice.
The national banking law, as il now ex-
lists, is law forever to prevent the resump-
ton of specie payment. And such also is
the legal tender act, which never was better
than trick of unconstitutional legislation to
give responsibility bad currency and make
it more effective instrument of robbery
The national bank requires no redemption
by the banks of their notes. except by pay
ment in other notes as much dishonored and
deprecated as theirs. This is an empty
lOlHig duO a nOChOIy VI Vic IIu6 lu6d Ol cOn-
vertibility. Then let Congress declare by
deliberate enactment that, at the end of some
definite and reasonable time, the legal ten
der act shall cease to be the law, and
enact that every national bank shall cease
its notes on demand in coin, and that each
failure thereafter to redeem a demand shall
be deemed an act of bankruptcy, and that.
in the meantime, every bank shall begin
and gradually carry on the accumulation of
u sufficient coin reserve in its vaults, prepa-
atory to the actual commencement of re-
demption. In this way beginning at least
may be made in the work of preparation.
Prior to 1871 no bank in the country dream
ed of escaping from or neglecting the vital
condition of its being. Why should they
now? Have they not been permitted to
disregard, and to make profit by disregard
ing, in this important matter, the essential
principles of safe and honest banking long
enough? Their legalized exemption from
the true laws of finance has already contin-
NO n THAR nannificont fron