The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1874-04-03
The Money ouastion.

I NN~--NI Ee-e9N-CAa
In another column we present an
article upon the money question from
the pen of Mr.. E. B. Ward. one of
the most prominent and successful
business men of the country. It is
an able article and should receive
the attention Of financiers every
where, but especially in Congress.
The idea he presents that contract
ing the currency to bring about
specie payment viii result in ruin
to the country, is one common to
business men, and is based in fact.
The true theory is just as he states
it, sbuy less and and sell more" and
not till the balance Of trade is in our
favor, and the demand for gold for
shipment ceases, and with it the pre-
MUM upon gold, will there be any
prospect of specie resumption, You
may contract the circulation to its
lowest limit, until there is not one
dollar per capits left,and at the same
time permit the balance of trade to
be against us, and the government
will be unable to resume, as the sup
ply of gold viii be required for ex-
portation. The only result viii be
the impoverishment of our people,
by folly which can only be termed
national suicide. Turn the tide in
our favor; start the flow of gold
hitherWard, and as its volume in
creases the premium upon it will fall;
the demand will cease; the value of
the paper in circulation will appre-
ciate and become equal with gold,
whether its volume is more or less,
and no other course will ever pro-
duce that result. Discourage i'm
portations and encourage exporta-
tions until the balance flows back to
rs, instead of going to Europe, and
the secret of specie resumption is
ours. Meanwhile give us a sufficient
circulation to meet the wants of
trade and assure prosperity.
There is one point, however, where
Mr.. Ward is evidently at fault In
stating the probable loss of currency
in ten years, he places it at $l5,000,-
900, which is much too low if the
experience of other banks is of value
in determining the loss. The exper-
ience of the State Banks of Illinois
proves that the loss of those banks
whose circulation was mostly of
home character, was equal to one
third Of one per cent per aanum, and
that the loss Of those banks whose
circulation was more general, was
equal to one per cent per annum.
The greenback and national bank
circulation is as extensive as the
country, and the per centage Of loss
must be heavier than the heaviest of
thes Illinois banks, so that the loss
on circulation in the ten years re-
ferred to by Ward, must have been
infinitely greater than he admits
triple that amount or more-some
even place it at S75,000,000. And |
yet, you never see q statement of |
the amount of outstanding circula-
tion from which this amount is de- |
1t is always: "0utstanding
legal tenders S382,000,00O" when |
there is really only that amount less
the aCaste and loss, be that fifteen,
forty five or seventy five millions.
This amount Of loss is never taken
into consideration by fnanciers, who
talk so glibly about Imitation" and
an "irredeemable currency" and who
would reduce the circulation to the
limit that existed before the war,
Notwithstanding the expansion of
the country, the increase Of popula-
ton and the immense extension of
and other business
interests. Irredeemable! when based |
upon the bonds Of the country which |
command a premium of twenty per
cent? At a premium because the
safest and best investment offered
They are secure, and people have
faith in them and in the government, |
and their promptings that there
should be more Of them,are only the |
prompting of safety.