Holmes County Republican. [volume] (Millersburg, Holmes Co., O. [Ohio]) 1870-1895, 1874-06-25
The CURRENCY QUESTION.

SSssssssNSs fS>SssSss
The conference committee of the
Senate and House agreed upon a
report on the currency question,
which was adopted by a large ma
jority in both houses. This bill fixes
1882, 100000 as the maximum legal
tender circulation; that is it de-
clares that all is out shall stay out,
but the amount shall not be increas-
ed. The so-called reserve" is abol-
ished, and the power to withhold
that portion of the reserve used by
the Secretary of the Treasury last
fall is taken away. Not one dollar
of the $685., ,000, 600 now outstanding
can be withdrawn without the au-
thority Of Congress, and, as there is
a majority in both houses in favor
of imitation, there is not likely to be
any contraction for some years to
come.
The reserve on circulation Is
abolished. Thus the banks are left
free to loan all their resources, with
the exception of the reserve on de-
posit. Prudent bankers seldom keep
less money on hand than was re-
quired by the law which has now
been changed, but in quiet times,
when money is most wanted for mov-
ing the crops, the funds heretofore
held in reserve will be used to a large
extent. The abolition of the reserve
and the legalizlng and keeping out
of 80 million greenbacks is equal
to an imitation of GO millions. 1t does
not create any more paper money
but it provides for the constant use
of money previously created that
was locked up in bank vaults or in
the United States Treasury. 1t also
provides for taking So million ma
tional bank circulation from the
East and giving it toWestern States
that have not their proportion, per-
capita; but it is stipulated that not
more than 80 millions of this shall
be transferred in one year. In prac-
tice this will not amount to much.
The West is a borrowing section
while the East is lending section.
This is the reason why the East
has more than its proportion of
bank notes. The disproportion will
be likely TO continue so lone
as there is more loanable capi-
tai in one section than another. We
now make the prediction that thert
mill not be rush from the West
and South for the So millions which
is thus made subject to redistribu
tiOn.
AS Senator Thurman said, the
bill has very little evil in it. Its
chief significance, however, is in
what does not contain rather than
in what it provides. Every propo.-
sition looking TO contraction OF
the currency or fixing a time for the
resumption of specie payment is
omitted. These questions, as Sena-
tor Sherman remarked, have been
postponed, and he might have added
Indefinitely. This was really the
greatest victory for the infationists.
Free banking would not have infat-
ed under provision naming time
for resumption, even had that time
been four years hence, nor would
the business of the country have
rested easy under such warning.
As it is, notice has been given that
while there may be further expan
sion within the next few years, there
can be no contraction, and it has
been decided in addition to that
the resumption of specie payments,
or preparations to that end, so far
as legislation is concerned, have
been indefinitely postponed.
Upon the whole, this is the best
that could have been done, next to
doing nothing. Congfess will ad-
iou-n to-day or tomorrow. There
is 73S millions ofpaper money afoat
exclusive of fractional currency.
There is to he no disturbance of
this volume. The folly in fixing a
time for the resumption Of specie
payments has been abandoned. Now
the people can turn their attention
from the field of speculations, as to
what is likely to be done about the
currency, to the more profitable and
inviting field of business, knowing
what the volume of paper money is,
and that it is not likely to be con-
tracted for many years to come.
The country is afloat on sea Of pa
per currency, and the wind is not
toward a gold or silver harbor.-
Cincinnati Gazette.