The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-19
RcdiStributnOns

The Senate of the United States is now
engaged in the folly of attempting to make
water run up hill In other words, an effort is
being made to redistribute to the South and
West q large amount of money, which, obey
ing the natural laws of trade, has concen-
trated in the commercial centres Of the North
and East Money flows where its use is most
profitable This is one reason why the banks
of New York, Boston, Philadelphia, Chicago
Cincinnati and other cities are at the present
moment plethoric with currency. Another
reason is that the absence of trade has created
that redundancy of idle capital which is now
seeking employment in loans or speculation.
1t is not, therefore, fault of the banking
system that there is a financial vacuum
in the sections that are championed
by Senators Morton, Logan and Merri-
mon. 1t is rather an evil-if it be
such-that no legislation can pre-
vent ~ no act of Congress circum-
scribe and no good offices in behalf of
constituency can control, because it results
from an immutable law of commerce. Take
from the North and give to the South and
West even hundred millions of dollars, and
what then? The sum will gravitate immedi-
ately to the financial centres. Send it yonder
at this particular moment and we venture the
assertion that it will find its way back in
sixty days. Why2 Because there is no use
for it Because if you apply to-day at almost
any bank in New York for national bank cur
rency the larger proportion Of the amount
passed over the counter will represent banks
south of the Potomac and west of the Ohio.
1t has come here, where securities are
ing the investment that is denied to it at
home. If stock board existed at Omaha
or at Montgomery, Ala, such as exists in New
York, who doubts that money would flow from
the East to the West and South? 1t would
follow speculative channel. This rule will
hold good as long as the amount OF money is
subject to the will Of Secretary Of the
Treasury or o national Legislature. 1t is not,
therefore, redistribution of the currency
that is required, but more business to give en-
ployment to idle capital All the efforts of
financial doctors in or out of Congress
cannot affect one iota the purpose which
they have in view. Their predecessors made
the bed, and the country must sleep in it until,
rising up in their might, the people shall
demand return to first iples-those
which are laid down in the constitution-to
wit, that there is no legal tender in this country
but gold and silver. If the South and West
want more monetary privileges let their citizens
instruct the representatives from those Sec
tons to pass free banking law, with such
provisions as shall steadily appreciate the
paper circulation of the country to specie
standard Let them compel the government
gradually to pay its forced loan of s4OO 600, 900
of legal tenders and fractional currency, made
as one of the necessities of war. When this is
done gold will take tie place Of greenbacks
the national banks can redeem in coin, in
stead of On irredeemable paper, as now pro-
vided; the credit of the government will be
augmented at home and abroad. business will
be again established on a durable basis and
national disgrace be wiped out.