The Portland daily press., 1874-07-03
Wauted-A Professor of Finance.

Wanted-A Professor of Finance.
During the past six months almost every
man who takes an interest in public affairs
has had a financial theory for the adjustment
of our disturbed currency Congress, how
ever, we have been told by Journalists OF an
Independent turn of mind, had no ideas on
the subject and could not tell what would be
The effect Of any given policy upon the status
of our paper money. Indeed, so profound is
the ignorance of our lawmakers ON this vital
subject, that they were unable to tell what
would be the effect of the act passed by them
upon the volume of the currency. The gen.
eral impression with the majority was that
the late currency bill would cause an infa
lion of the currency. The bright journals
which always know everything and know it
just right every time, as soon as the bill was
reported went into arlthmetrcal calculations
10 prove that the measure was an outrageous
scheme of the 1ationists-that if Congress
was bound to adopt any measure of this ma
lure, it had better by far have adopted the
bill vetoed. The bankers, too, the cool head
ed men, who are supposed to know just The
tliCCt VI d YlOUO HObC W buc pIcScllt
volume of our paper money and by long OBJ
servation can predict the effect of changes in
our be wildering statutes respecting the cur
rency with greater prompitude and correct
ness than Gen. Myers predicts to-day the
weather of tomorrow, were confident that
the measure would result in a decided expan-
sion of the circulating medium. The only
question was to the amount of the imitation.
One set of fnanciers put the amount of the
inlation which would practically result from
the bill at $50, 900 while another class of
experts was quite confident that the bust
ness of the country would not realize more
than $20,000,000.
No wonder then that Gen. Logan went
home appeased and that the noble CLAYTON of
Arkansas can be content to remain beyond
the boundaries of that state for fear that Gov.
Elisha Baxter may try him for treason.
Doubtless the imitation champion, Merrimon.
is now waiting among the piney woods of
North Carolina for an influx of Uncle Sans
promises to pay in which he has has
an increased faith since the days of 1868.
There has, however, been change in the
opinion of bankers since they have had time
to consider the workings of the new law.
The shrcwdest operators are puzzled not so
much over the amount of expansion which
will result as whether or not the pro-
visions of the compromise bill will not cause
contraction of the currency. A Washing
ton telegram estimates that there will be
contraction of the circulation to the enor-
nous figure of $4,000, oOO-including the
five per cent. deposited at Washington, cur
rency in transit to and from redemption GEN.
tiers, balances to be drawn by country bank
ers, national bank notes likely to be retired,
and the working balance to be held in the
Treasury. M
Other parties, including Treasury officials,
pronounce that the above is an exaggerated
statement of the immediate results of the
bill, though they admit that it will ultimately
be found to work as great contraction as
that above stated. Our New York exchanges
assert that other estimates by so called CON-
petent parties are almost as sweeping. At
best, it is evident that the compromise cur
rency bilr'-claimed to have been a moder-
ate but decided victoryfor the expansionists-
is really great deal of triumph for the con-
tractionists.
This time not only Congress has been de-
ceived respecting the measure, but bankers,
financiers and other gentlemen who make
this subject a study. The inference to be
drawn 10 that our vurrcury system Is SO InJrf-
cate that the wisest cannot predict the effect
OF a certain measure upon it or else the ques-
ton has not been made the subject of careful
investigation. The next measure which
Congress adopts may be intended to produce
contraction of the currency. If, by mistake,
it should turn out differently and let loose a
flood of paper money, the result would be
disastrous.
Why not have Professor who shall fit
himself to give accurate opinions on the effect
of changes III currency legislation SO that it
shall not have SO large an element of chance
in its results? l5-aJt.f ss:t