The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-05-18

by the sale Of our bonds. 1t woald
be the brightest star in Philadel-
phia's galaxy. / believe that gold enough,
without panic, could be obtained in the
European market to answer the demands
of graduated resumption, which should
be complete on the Fourth of July, 1876.
The sufferings. in my opinion, occasioned
by such resumption would be slight com.
pared with those following a deprecated
currency.
But in this opinion majority of my col.
leagues of the committee do not share. and
the result is the
COMPROMISE OF THE EIGHTH SECTION.
which provides for the gradual reduction
OF the amount of legal-tender. That meth
cd was selec ted as the one involving the
least distress. The contraction is gradual
and slow. At the beginning the currency
is not contracted at all The quantity of
national notes is not changed. A portion
OF them are changed in quality; are of a
higher value; but this value is not for
some time appreciable, and to the end they
can be used as legal-tender. For the two
millions each month withdrawn, two mil
lions are immediately substituted. These
two millions discharge all the functions of
the original greenback although they have
the further merit of carrying the promise
of repayment in gold at definite time.
We have, therefore, until two years have
elapsed, still four hundred millions of
promises out: but of these promises two
millions monthly are assuming a definite
and respectable character. For two years.
then, there can be no contraction Of the
unluma Ruf thap mill NOT tho cola rrroo,,
back be boarded? Yes, by the banks,
who, being forced to keep reserve in
greenbacks, will release their paper green
need one hundred and forty millions for
their reserve, so that the banks will fur
nish depository for more than the fifty
millions which can be issued for two years.
After two years there will be contraction by
the amount of two millions for each month,
In the mean time, should private citizens
compete with the banks for the gold green
back, which is scarcely probable until the
reserve of the bank is supplied, the gold
greenbacks in private hands furnish u
slight elasticity to the currency which may
have its use.
THE GOLD GREENBAoK
at the issue is worth scarcely more than
the paper greenback but as it approaches
the tune of payment increases rapidly in
value, so that the tendency constantly in
creases to withdraw it from circulation
But, as it is still money, great demand
Tor money increasing Its rate would force
it into market again.
Let us not forget, In examining this
method, that the action taken is final and
cannot, by indirection, be repealed by the
government. The dishOnored and indefinite
promises that have been withdrawn are
cancelled, never to be reissued In their
place are promises so explicit and definite
that no Congress would dare to
break them. Two millions of irredeemas
ble paper is destroyed each month, and
cannot, except by direct act of sovereignty,
be re-created.
1t should not be unnoticed in considering
the value of this measure that
1T IS A SIMPLE MEASURE,
free from subtlety and complication one
within the comprehension of the plain citi-
zen, The is as it should be. If govern
D.lnt will NEEDLE with that which it should
leave alone, at least let this interference be
such as the people can understand and in
telligently conform to.
This is an easy measure, and alas slow
measure Of resumption.
If we offered no quicker results we were
bound to make provisions which should
guard the long interim as far as possible
from the evils of our deprecated currency.
TWAS not, therefore sufficient for this com
mittee to offer only method of resump-
ton which in many years would bring this
country to specie payments. 1t was nee
ak 1la -ba
safeguards could be devised against the
recurrence of panics in the meantime.
We have seen that the natural tendency
of deprecated currency is tn lead indl
rectly to the destruction of that trus
which is the foundation of all currency
We have seen that this destruction of trus
, is the occasion of panic In the absenc
of trust, in the temporary destruction o
currency only money is priced. In cOun
tries where the currency Is normal the du
, ration Of panics is stopped, by attractin
; to the points Of stringeucy, by the offer q
y large interest, the money OF the world
: Here is an analogy which should guide u
a in the organization and management of tn
. artificial currency which we have created
{ When, under our system, this lack o
= trust destroys the functions Of currency
/ and frightened people refuse to accer
. aught else than the substitute the la
!. forces upon them, if the amount of none
is limited, from what source can the pam
!. get it's relief? 1t cannot fall back upo
the markets of the world The world, IN
/. fortunately, has not its best currency.
= What is wanted, is that elasticity whic
$ the laws of trade supply in those countre
: which enjoy the currency of the world. l
i what way can an artificial elasticity be e
n tablished which shall measurably supp
k Continued on third page.)
e