The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1874-03-30
THE NATIONAL ExoHEQUER.

We again recur to this measure, now
pending before Congress, and ask from all
a careful reading Of the bill, which we print
and keep standing for the public iniorma-
ton. For years we have been denouncing
the present system of finance as unsound,
inadequate, and fraught with dangers to
legitimate industry and trade. Every years
experience has strengthened our conviction
that its continuance must inevitably sap
the foundations Of the public prosperity.
The great disaster of September last was
merely the monitory creaking and trem-
bling of fabric, which only speedy and
radical reconstruction can save from crash
ing ruin.
Waiving all possible and doubtful ques-
tons, it is now clear that if anything at all
is done by Congress, at this session, some
compromise measure only, is likely to har-
monte the extreme views. Those who
see only the necessity of specie payments,
and those who see only the need of moro
currency, must get upon some common
ground. Is ii possiJleto increase the loan.
able means of the nation and make money
easier TO obtain without deterlorating Its
purchasing power so as to unsetsle values :?
This is the vital question for, if SO, the
resumptionist and the inaationists can find
the basis for compromise. We see clear
ly several methods of doing this, all of
which are in harmony with the we'll settled
principles of finance.
The bill for the National Exchequer,
which was introduced by Mr.. Plat, of the
Norfolk District, is the one, which strikes
us as embodying the aims Of both parties,
and in manner quite free from any solid
objections. This bill creates no new debt.
1t provides for funding a portion Of that
row existing in interest-bearing bonds OF
lower rates. 1t presents plan of equita-
bly, distributing the currency. 1t improves
the quality of our money, widens its area
of circulation, and provides the increase de-
manded for business purposes.
These results are reached by expedents
already approved by the combined expert
ence Of the great nations Of Europe, as
well as of our own country, during thai
period when its finances were least inter
rupted in their healthful action. BY com.
bining the total credit of the country we
attain the basis of reliable currency
That credit to-day is shown by The higf
price which our bonds are bringing in al
the markets of the world. Our nationa
currency is secured by these bonds. /
every national bank were wound up and ii
securities returned and sold, they would
bring enough in any market in the world t
redeem all the outstanding notes and hav'
vast surplus of coin. We are therefore
already on coin basis, and have been fol
many months. What we want now, il
appropriate machinery to realize in practice
what we have long since attained in fact
We have been able to make our note
equal to coin for two years. There ha
not been day since our bonds We're a
par in Europe when we could not hav
resumed specie payment. But the re
sumption must be upon a plan which ex
pands the currency to meet tie acanst
Of business, and not upon a system
of contraction that destroys business. AL
writers, worthy of place as teachers o
financial philosophy, agree in this. that
money is absolutely good, too much of
cannot be in circulation. From the sam
authority we learn, what all experience
teaches, that mere contraction of the volume
of the currency never secures specie pay
fnent. If suspension is to be cured, it mus
be by policy which stimulates every
branch of industry into its most vigor
Gus activity. The Exchequer provides
for these requisite conditions. l.
gives more money and better money, i
gives resumption, and the revival Of every
legitimate pursuit. 1t makes no war upon
any institution rightfully claiming popular
confidence and support. 1t is measure
of compromise, offering to reasonable men
OF all parties a safe and substantial plat
form to harmonic differences. 1t enables
the country to get on safe financial basis
from which it can effect more radical re.
forms as it sees more clearly its wants and
interests.