New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-02-28

of go much currency being used 10 float speculation AZ
can be spared from legitimate busiDes only much
currency will apt to into legitimate business as can
be spared from floating speculative enterprises Upon
how large a proportion OF currency will go from that
center OF speculation to North Carolina and other points
and the extensive that speculation the greater
quantity OF currency will strive to press into It's
service land IL will succeed In controlling and
the smaller the proportion, therefore. that will go
into the channels OF legitimate business IL fol
lows AZ a natural consequence that everything which
tends excite TO stimulate. 10 increase speculation and
gambling VIII remedy but viii aggravate that evil
Now 1t IL notorious. uDdonbted Tact Tact not qnes-
toned by any sane man, that an irredeenaDc paper
currency will incite speculation and gambling to fear
ful degree that by its hnctnations WIZ force
people into speculation and gambling Tue greater the
imitation, therefore. the more speculation VIII control
the currency. and the less proportion WIZ DC et ior
Legitimate business Far from giving greater facilities
the transactions Of legitimate business, Increased IN
fation will only tend 10 increase the want lar III excess
OF the supply Imitation will increase tho want Tor ~
will run up the premium gold, aud have the effect of
raising general prices, rendering thereby greater vol
OF currency necessary To efect the same eXcahPes
Imitation will not In proportion increase the supply, for
IL will drive larger proportion OF the currency nto te
OF legitimate business One hundred millions viii not
help yon and you put out two hundred millions VIII
help you stu less Tor the appetite VIII not Oe sassned'
10 viii only be stimulated by the supply.
AN IRREDEEMABLE CURRENCY THE sPEcUIAToR's MONEY
Now issue more currency, and It will goJust as little
where you want it to 90 IL does now You can Issue
Il but mark my words, you cannot force 1t into the
channels OF legitimate business and you cannot force
out Of the channels Of speculation. The currency you
fall under the control OF exactly the same class
Of men who control IL now only In larger ana more
arger proportion Iii 20 inte the hands Of those who
have too much already and use IT for BAD purposes ana
1t Will increase their power keep it out OF the hands
OF those who not enough and who would use It for
good purposes. You are iudulging In dangerous,
might say childish deusiOn II you thnk that you have
any power TO prevent new Issues from H0wlng exactly
the same way the old ISSUES have gone Increase the
volume OF the stream, ana YOU VIII make III now ohy
the faster, but not In q different direction. Qlio-
bic about i'm as You may draw ,or Wa nat W IGe
stares you IN the face, inflated irredeemaDle cur
rency is not the peoples money It - the SPECTATORS
money. IL will only be more powerful weapon IN the
hands OF the specuor TO cripple Legitimate business
and to Cypress the people the more there IL of IT. IL
always has been So aud 1t always VIII DE so, ana the
sooner the American people make up their minds to TINS
fact and honestly act upon IL the better Will DO for
their virtue well rs for their prosperity.
Now Sir, sincerely and profoundly do sympath!ze
with the people OF The Senator from North Carolina
do with the people OF all the States who suffering.
should be most happy AMI them in their distress
will not only help them but aggravaJc the evils Of
which they are complaining. | would rot consent to
give them poison, even II they would ask me for IT,
A WORD TO THE FARMERS.
II farmer planter could initiate the currency and
run up the premium on gold sells his crops and
then manipulate the currency to raise the value OF
paper money aud depress the premium on gold when he
buys his supplies. OF that would DO winning
trick But those who buy from snd who sell TO him
would try TO play the same game; and In tbs tricky
game the honest farmer would be sure To come
10 grief he has come TO grief already.
No; II tue farmer or planter wants to prosper he Will
above all things, every effort within hs power 10
rid the country OF system OF currency which Obiges
him sell at low and BUY at high prices He may ior
moment think that initiation viii aid hun IN paying OF his
debts If ne has any; but upon consideration he VIII dis
that debts are pad out 81 surplus earnings ana
that his earnings Will be depressed when the price of
buys high ia proportion to the price of what
he sells; that MS surplus earnings VIII grow larger do
soon as the price Of what he sells Is put upon an
equal footing with the price Of what he buys.
lilo Will discover that the trick OF depreclatlng
the legal-tender By imitation IN order TO pay
what he owes IN currency less valuable, VIII not re-
dound TO his advantage ~ me end ana hdt IN ms. ~
IN all other things honesty is after ALL the Oest policy
He viii discover that an honest currency Whcn per
mts nun TO buy and sell on the same OASIS o. value. Is
for hm the safest basis OF prosperity ana trust the
time is not far distant when the farmers whatever arm
noes or demaSOgsm may ne usei al present upon
tnem, will, one man, stand up honestly and inte
gently for the earliest possible return specie pay
EXTENDING BANK CIRCULATION
Let us look at the provisions OF the National Banking
act It provides that in order to establish National
bank United states bonds must be deposited in the
Treasury Of the United States and that 30 per cent OF
the nominal amount of those bonds may be Issued by
the National bank as currency Now in the hrst place
10 depost the bonds 1t IL notorious fact that in the
West the amount of United bonds held is rather
small and in the South still SMALLER and the bonds
which are there are mostly held fixed investments
The persons who want 10 establish National banks must
therefore buy bonds They must buy them where
bonds are Sold that is in the Eastern markets and
they buy their bonds with money. Where do they
get that money! They take that money out OF their
home circulation and the money so taken out OF their
home circulation tAey carry 10 New-York.
Now see now TINS operates. rOr SlVOJ ophd they
have 10 buy they pay, per cent bonds now stand
about 81 2O In currency Ih1t sum OF Sll-J Is Win
drawn from thet nome circulation ana Is az lc 10 thdt
OF NeW-IOrk Then they take the $1,000 bond So pur
chased to Washington aud for that SOp bond they gct
5000 In bank currency and the 900 they carry
Then they lock mp is or % cent ON tn $500 as the
serve prescribed by law in their bank vaults, they
NAV be country city banks For the sl2l carried 10
the country bank then puts out 1865, aud the
city bank S675 10 accommodate their customers with
loans aud discounts. These loans and discounts may
indeed back TO the bank every thirty or sixty or
ninety days. Bat Jes not the senator from Indiana
see there anybody so blind as not 10 see, that much
greater amount had gone east before thc western OF
Southern bank could make any loans and discounts 10
not clear sunlight thai FOR every 1855 Issued by
country bank every Sj5 issued by city bank, Sl2O
mad gone to New-Yurk before l. It clear that tie
amount Odnabe money, instead OF being increased,
has diminished 80 or 40 cent By the operation
fl that By the establishment of National banks
here and there some greater banking t1eltles may De
offered. They take deposits and they make discounts
but the value OF all the facilities thus offered VIII not
make up for the dimnutiOn wIch the home circulation,
that locality by the process Where tLen, Is the N
creased accommodation OF the business public No
where; but the result i just the reverse.
Now Sir carry out tins system on the largest scale, by
free banking act ana what VIII be the result IL VIII
he exactly the same only mucI extended and intcns
rd Aud il is very probable, nay almost certain, that
and NeW-Eugiand will, by free banking act not be
weakened but IL will become stronger anu more hrmly
cause In the East NewYOrH aud New England, they
have capital TO invest in banking establishments
they have the bonds themselves. ana can establish
National banks without sending money Trey Will,
therefore, then have and keep vast majority OI
the banks and prePonderdnce OF the Nhoni oanhlng
currency They Will Of enjoy the hons share or
the business. IL gentlemen complain Of the grasp
the monetary power OF the East has on the West ANA
South, shall that grasp not weakened but Very
much strengthened by what Is here proposed.
----------------------
NAMING MOUNTAINS.
To the Editor Of The TFi1ahe.