Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-04-29

| commodities 1t rests often on the
promises of the future, the vicissitudes
of the seasons, the whims of legisla-
tors, the continued rectitude Of men
hourly exposed to temptation, and a
thousand other contingencies. This
expansion of unsound credit involves a
spirit of speculation, of positive gam
bling, and as the risks increase, the
premium on money in the shape of in
teFest necessarily increases to cover the
risks. Hence the steady growth of the
rate of interest during the present
generation. A greater or lesser vol
ume Of any sort Of currency will never
lower the rate of interest, until the
credit system is brought back within
its old legitimate sphere of represent
ing actual values. Interest includes
not merely the asa of money, but
the risk of losing it. 1t is
this latter clement that runs up the
rate Ike IN insurance premium against
fire.
Finances then are no longer an exact
science since the widely ramifed credit
of to-day depends to an alarming extent
on mere confidence, which is an inexact
and always varying quantity, that can
never be measured with precision.
When we add to this the fact that all
our banking in this country depends
on Government, and Government itself
depends on rapidly shifting political
changes, while the party in power is
always liable to shape financial legisla-
ton according to party exigencies, We
introduce fresh clements Of incertitude.
When we remember further that our
Government to-day is not merely bank
ing on nothing, but banking actu-
ally on its debts, using four hundred
and thirty millions Of its debt as a cir
culating medium, We have complica-
ton to which past history affords no
parallel. THERE'S still another element,
which sets at fault all the lessons that
can be CLEANED from European expert
ence. Ours is a young and constantly
growing nation, setting at defiance
principles that are infalibly true of old
and matufed countries. Our cheap and
rich soil, with the continual aecretions
Of immigrating wealth, skill ana iasoF,
renders it possible for us to venture
beyond the landmarks Of what Is safe
finance In Europe. But how far may
he venture with safety5 Here is
another element Of uncertainty. and
its measurement IS to-day alto
gether guess, strongly biased
by the temperament Of the guesser.
The sanguine man is confident of
chimeras; the cautious hesitates to step
one foot beyond the limits set by the
experience of older nations. Between
the two there is every shade Of degree,
according to natural temperament ana
personal experience.
Thus feaffully complicated in this
country, We promise to give the world !
the new sensation of seeing the subject |
RENTED to the decision Of the masses
Of the people. We are but in the |
beginning Of the discussion. The null
hilarious debates Of Congress thus far,
have been but j skirHlish, not even I'M
covering the position of the contend
ing forces. 1t Is a curious commentary |
on Congress that four months and a
half Of discussion failed to reveal the
fact that four millions of author
lied currency still remains in
the Treasury, OF the reason why the
redistribution Of twenty-five millions
provided for years ago has never been
effected. This Is but one sample If the
many important clements in the prob
lem which have not yet been preached,
much less intelligently discussed.
Whatever the present Congress may
do. It cannot settle the question, be-
cause it cannot and viii not sweep |
away the entire Radical structure of
national finances. Il will not divorce
government from banking and cur
rency. This forced marriage IS as IN
healthy rs union OF Church and State
The Democracy Of 1888 took ten years
to divorce government from manufac-
lures by the gradual abolition of the
tariff. Democracy is to-day the only
party in a condition to seize the present
problem. 1t has no entangling ALI
ances with the money monopoly,
ike the dominant party. Il Is
free to mature plan that Will gradu-
ally relieve the people, and while re-
speeding vested rights will eliminate
the expressions Of monopoly. The pre-
sent diversities of views about the
means for relief from present evils, does
not abate one lot of our confidence that
some such policy viii be fully Swallowed
forth by the Democratic party, in time
for the national contest of 1876. Be
sides present relief, the country Will
demand far-reaching policy to cure
tie whole evil. Unless some great par
ty, and we may as well say unless the
Democracy presents such polcyi, the
future of our finances is a gloomy pros
pect indeed. One violent measure after
another, one Congress completely re-
versinE the policy of its predecessor,
an alienation of desperate devices and
panics, would be inevitable. !