Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-04-23
L Ar SEA


The first thought, on reading the
Presidents veto of the Senate financial
bill, is that the whole subject is again
RENTED to the chaos of Congress.
That the Radical majority do not atall
understand the question, after over
four months debate in Congress and
seven months in the leading press of
the country, was amply proven by the
establishment of all parties when Comp
troller Knox revealed the real nature
and necessary effects Of the bill
which they had enacted. The
infiationists were astonished when
told that the imitation would
be necessarily gradual, while the
Eastern bankers were alarmed
at the effect of the clause calling home
to each bank all but one-fourth of its
reserve. This latter feature was a small
step in the right direction toward a
more equable distribution of the cur
rency under the present awkward sys-
tenn. The provision requiring each
bank to retain, as part of its reserve,
%one-fourth of the ecin received as in
terest, was also d good feature. The
bad features of the bill we need hardly
recount. There was, first, the condor
ing of the unwarranted issue Of $780,
000,0 reserves by Richardson; and,
secondly, an initiation encouraging fresh
speculation to breed fresh panics,
~depreciating the dollar in every
poor mans hand, and the
value of every promissory note out
standing, requiring a readjustment of
all values to which the merchant would
Immediately respond, while farm pro-
duce and the workman's wages would
lag far behind. The existing difference
of thirteen to fourteen per cent. be-
tween gold and paper is a self-suficing
proof that more paper is not the RENE
dy. 1t shows that the total exchange
able values Of the country,in accommo-
dating themselves to the present vol
ume of currency, are not enough to alb
sorb it all except at a depreciation. In
other words, thirteen per cent. less
than the present volume, if based on
gold, would represent the exchangeable
needs of the country. Long expert
ence before the war showed that the
normal discount on bank bills was only
one or two per cent. Why should it be
thirteen per cent. to-day? Paper is
but a creature of confidence. The pop
! ular confidence in the present currency
is immeasureably greater than was
ever enjoyed by anyante-bellum paper.
But that old paper was based on specie,
while the present is not. Another evil
is the centralizing nature of the pres
emit National anksystem ,whichdepletes
the country sections, creating a demand
for more imitation, and floods themoney
centers to incite more speculation. The
evil is radical, and the remedy at the
hands of a Radical Congress was not
to be expected. The Senate measure,
Just vetoed, was perhaps the best at
tainable from this Congress. Presi-
dent Grants claim that its approval
would be a departure from every mes
sage sent to Congress by him is ride
ulous, when we recall the closing words
| on finance in his very last message:
"The decision of Congress will have the
hearty support of the Executive" Yet
he makes some sound points, which
should arrest the attention of
all. His allusion to the fact
that twenty-nine millions of national
bank currency have for years been sub
iect to the demand of the very sections
clamoring for more money, but re-
main still uncalled for, proves the
fallacy of imitation as a panacea for our
ills. On the whole, we wouldthank the
President for this veto, if we could
| shake off the presentiment that Con.
gress will now proceed to cook up, and
that Grant will in due season sign, a
worse bill.