Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1874-04-10
sUNBURY, April 10, 1874.

strong TO be overcome. The south and
west, as represented in Congress, are al
most unanimous in favor of more currency,
while New England is unanimous the
other way, and in this is sustained by New
York, Maryland and the gold States Of the
Pacific. This combination, says the Ger
InaEtowu Telegraph, has been slowly form
ing for long time. In the House it took
shape in the Centennial bill. Pennsylya-
MIA leads the majority and shapes the gov
crning policy. So far as can be at present
seen, the volume Of greenbacks will not be
increased beyond the original four hun
dred millions but there will be large in
crease in the volume of national bank cir.
culation to meet the wants of the middle,
southern and western States. New Eng.
land and New York cling desperately to the
monopoly of this bank circulation they
have had so long, but Intellectually.
As the natural result of these proceed.
ings the sold premium has risen in New
York, and should the legislation be con.
summated in the spirit of these votes, the
premium will rise still higher. \ great
deal depends upon the policy Of the Presi
dent, whose views and intentions are again
reported directly in the face Of these pro
ceedings and much in the same tone as
had been previously stated. To add tc
the uncertainty, the resumptionists in the
Senate confidently predict that the Presi
dent will veto any act for imitation. This
does not agree with the announcements tC
which we have referred, both of which
agree that the President is in favor of free
banking, though he is in favor Of making
all tie currency redeemable. What seems
to be beyond dispute is that all the fancy
financial schemes are defeated. There vii
bc 10 issues sofinterest-beariDgc of currency un.
der any disguise, and thus compounds
three-sixty-fves, and all the rest are hud
died off the stage in a bunch. Congress
could not be hoodwinked again into sad.
ding the Treasury with n load of interest
on mere paper circulation.
II is also gratifying 10 notice that the
elaborate essays in favor of continued
greenbacks and against the national bank
currency have been treated with entire
contempt. The wise men who regarded
Congressman as ignoramuses because they
would not abolish the bank currency have
had only their labors for their pains. The
oat;opol Lapt;nc s,.cfo,, hoe ,;,,o, o,,;-o
satisfaction TO the people, and is now toe
firmly rooted TO be shaken by dreamers
and enthusiasts. We could wish that in
extending the system Congress would guard
against its being again monopolized by one
corner Of the Republic, and secure its gen.
eral distribution. Also, we could wish
that efforts might be made to secure the
redemption Of all the greenbacks and bank
notes at some future time, for even if the
period be two or three years distant. ii
will be something definite to work up to.
The pressure that has forced this action
OF both houses Of Congress is the stagna-
ton in business, and the general embar-
rassment, anxiety and uneasiuess of busi-
ness men for want Of any definite basis of
calculation. In mercantile affairs almost
any basis that is well adjusted and not
shifting and uncertain can be worked up
70, and though If IS true that the rampant
speculative spirit in New York gives an
aspect of uncertainty 10 our currency that
really docs not belong to it, yet if the policy
OF the government be once definitely set
tied, the Treasury Department commands
ample power to restrain the gold premium,
and will use it resolutely.
Before the panic the Treasury held S44,-
800, 900 Of sreenbacks that were retired by
McCulloch but not Cancelled, and ever since
were regarded as reserve in case of emer-
gency. When the panic came the reve-
nues collapsed so suddenly and alarmingly
that the government had either TO use
this reserve or TO sell interest-bearing
bonds. Some twenty-six millions of the
reserve was used before the revenues re-
covered. This was a loan without inter-
est. But strictly speaking it was not in
hatiou, for the currency had been in crcu-
l2tion before and had never been Cancelled.
and was always regarded in the current
calculations Of the financial situation as
within reach just as much as the reserves
in the banks.
In explanation Of the action Of Congress,
it may be urged that the Secretary of the
Treasury was very soicitous of an increase
OF taxation to enable the revenues TO meet
current demands, and TO this Congress has
been averse. The situation could be re-
lieved by selling bonds to raise money, BY
increasing the taxes, or by the issue Of the
reserve greenbacks, and Congress has
chosen the last. Revenue might have
been had by repeating the zen per cent. re-
duction in the tariff. But that would not
have relieved the scarcity of currency.
and if our increase Of bank circulation is
10 take place there must be an increase of
the basis OF redemption, which is at pres
en-: greenbacks, or else provision must be
made to substitute specie for greenbacks
and thus put the latter in general circula-
ton. The Isolated and sectional character
nf the policy Of the chief commercial cities
has been strikingly exhibited in this con-
test. Their clamor has been incessant
against the paper currency. while it now
appears that vast majority Of the people
are perfectly satisfied with it, and are de-
terpiDed not TO be deprived of what has
served them so well in times Of great dan
ger and difficulty. But the combination
Of Pennsylvania and New Jersey with the
entire south and west has an important
rolitical significance that should not be
overlooked.
CONNECTICUT ELECTION The election