Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1874-06-25
The Cnrrencr onestton.

Ino currency SRu0StEOA"
The conference committee of the |
Senate and House agreed upon a re-
port on the currency question, which |
was adopted by a large majority ii
both houses. This bill fixes 1882,
900, 900 as the maximum legal tender
circulation that is, it declares that
all that is out shall stay out, but the
amount shall not be increased. The so
called "reserve" is abolished, 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 1892 10000 now
outstanding can be withdrew without
the authority of Congress, and, as
there is a majority in both honses in
favor of imitation, there is not likely
to be any contraction for some years
to come.
The reserve on circulation is abol-
ished. Thus the banks are left free
to loan all their resources, with the
exception of the reserve on deposit.
Prudent bankers seldom keep less
money on hand than was required by
the law which has now been changed,
but in quiet times, when money is
most wanted for moving the crops,
the funds heretofore held in reserye
will be in extent The abolition of
the reserve and the legalizing and
keeping out of the 80 million green
backs 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 Treas
uTy. 1t also provides for taking 80
million national bank circulation from
the East and giving it to the Western
| 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-
tiee this will not amount to much
The West is a borrowing section
while the East is the lending section.-
This is the reason why the East has
more than it's proportion of bank
notes. The disproportion will bt
likely to continue so long as there il
more loanable capital in one sectior
than another. We now make the pre-
diction that there viii not be a rush
from the West and South for the 81
millions which is thus made subject tt
redistribution.
AS Senator Thurman said, the bill
has very little evil in it. It's chief sig
nifcance, however, is in what it doe!
not contain rather than what it pro
vides. Every proposition looking tC
contraction of the currency or fXinG
time for the resumption of speci
payment is omitted These question:
as Senator Sherman remarked, have
been postponed, and he might hav
added indefinitely. This was reall
the grestest victory for the imitation
lists. Free banking would not have in
dated under a provision naming
time for resumption, even had the tim
: been four years hence nor would tn
business of the country have reste
under such warning. AS it is, nc
tice has been given that while ther
! may be further expansion within th
: next few years, there can be no con
traction, and it has been decided, i
addition that the resumption Of speci
L payments, or preparations to that enc
t so far as legislation is concerned, hav
e been indefinitely postponed.
1 Upon the whole, this is the best ths
: could have been done, next to doin
: nothing. Congress will adjourn tc
day or to morrow. There is 739 mi
lions of paper money afoat, exclusiv
of fractional currency There is t
be no disturbance of this volume
The folly of fixing time for the II
e sumption of specie payments has bee
d abandoned. Now the people can tur
n their attention from the field of spe'
O ulation, as to what is likely to be dor
d about the currency, to the more pro
, table and inviting field of busines
T. knowing what the volume of papt
money is, and that it is not likely
/ be contracted for many years to com
; The country is afoat on sea of p
d per currency, and the wind is not t
n ward gold or silver harbor