Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-15
SPECIE IMITATION.

k<AlION.
With the salary grab shelved for the
nonce, and the Senate launching forth
ON the question Of redeeming the ma
tional pledge to pay the bearer" en-
graved on every greenback dollar, the
discussion of finances is again in order.
When greenbacks were worth ninty-
FIVE cents gold last October, and starved
Europe was sending over it precious
metals freely to purchase our surplus
harvests, an opportunity was offered for
specie resumption such as may not oc-
cur again in many years. Hence this
journal urged strongly the improve
ment Of the golden" opportunity.
We know the popular feeling, among
merchants particularly, was for inAa-
ton: Give as financial ease, said they,
and after us the deluge" We know
also, the cause producing this feeling,
which is no other than the fact that
our section, with its great staples of ex-
port, has nothing ike its proportion Of
banking facilities. The boosted ma
tional bank system, under Radical ad-
ministration, does not give us half the
banks or currency we need, while at the
same time, its provisions prevent the
establishment of State and private
banks That the South has suffered
terribly for want of currency, even to
the degree of starvation, is current
history. One of the most effective
means of financial relief for all sections
Will be such a modification Of the pres
ent banking system as will permit the
relations between capital and mer-
chants and producers to be regulated
by their wants-in other words, free
banking, with all the restrictions which
experience declares necessary, and with
all the good features of the present
system retained.
But we have set out to discuss specie
imitation, The phrase apparently in
wolves paradox, and yet the inevita-
bic result of specie resumption would
be imitation of the currency. Every ar
gument We have seen for greenback in
fation, is equally an argument for spe-
Gle resumption. Take for instance the
argument that our existing currency is
not sufficient for business demands.
The present volume of currency of all
kinds is about eight hundred millions.
The question is, shall we initiate its vol
ume, or initiate its raluel The most ex-
travagant advocate for more green
backs. thinks an addition of one hun
bred millions would be ample, making
| the whole volume nine hundred mill
ions. But gold now ranges about
twelve per cent premium, and if we
raise the value of the existing eight
hundred millions to gold by
specie resumption, We add twelve
per cent to its purchasing value,
and the existing eight hundred
millions would serve all the business
purposes of the proposed nine hundred
millions of deprecated paper. Thus,
specie initiation would give al the tenn
porary benefits Of greenback imitation,
and at the same time give the currency
a sound basis, and give business values
the fxity and stability which Legitimate
trade demands, and the absence OF
which fosters speculation. The argu-
ment is even stronger than we have put
it. The above comparison takes it foI
granted that one hundred millions OF
extra greenbacks could be issued with
out enhancing the gold premium above
II per cent. The more probable result
would be an advance OF gold to some
where between 20 and 30 per cent
premium. So that, practically, the
| proposed nine hundred millions would
have little more of purchasing power,
than the present eight hundred mil
lions, and perhaps none at all. Hence
it is very doubtful that an increase of
greenbacks would, practically, be able
70 move more real values IN the way of
wares and crops. But give us specie
imitation, and we have a certain increase
of u per cent in the capacity of our ex-
listing currency. In this matter, as IN
others, the good old Democratic princi-
pies offer the srest relief, both tenn
porary and permanent, for the whole
country.