, 1874-02-26
MONEY AND COMMERCE.
MONETARY. .


MONETARY.
-7- 49,.
WEDNESDAY EyEs1sd, Fob. ".
>, Ne" 1ofk exehango 10 stcady ut 5oe pcr =, ooo
o'sco''"s'
!no movement or currency to the country hAs
poon 'efy i'gnt 1or tho lost low taya, aha LILO fe
'o,p'H are III oxooas OF tho oftgo'
fmane'ai brs'noas CONTINUES worry DUN III TINS
1narKos. Ihoro Is a moderate domand Tor bank
accommodation. but tho majority OF the batks
"ou'a 10 glad 10 tnoroaso Their loana 1t satisfac-
Tory p"por woro oHorou' Dut 1t 1a getting TO DO
common remark that
BUSINESS 1s DEPREsaEp,
al discussions On tho currency question. This
Ia, Of course not apparent III tho sa1e Of goods
ana connoaltioz, hnt ]rntnncoa ara crnnn,nr mt
ovorv dav ~ narsora ~ .rl,o oro do,.v,nD Inrgo
transactions IN tue loan OF money on mortgages,
mud In tho negotiation Of bonds and aocuritics OF
ono kind or another, until they hnow what
Conorcaa vii, do nhout Tho curronov, Tho
parties ana CORPORATIONS WHO uana!ly iena money
III 4arRo sums on tohg ''t,o ato a.ta'o snas oon-
gress will authorize tho iBsuo OF moro greon-
backs, In which caao thoao capitalists oan 600
that Il won1d In 1,otte, tn inront THAR norev In
ann,o rornm,a:7;tr tot ,v,,l o5yonco .ri, tho ,ao
evAo so.o, 'n"s - W.. ~ ,ss,s
Of gold instead OF lending 1t out to DO paid lack
in paper dollars worth less than the ones loaned.
Wc know of ono mortgage company which ia do
,ne nl,noat nothinr nj nrcsont, for tl,ia rcnson
ces.sst 10. ~. T., C,,,a,. W. -, ~,
eo4erai p"ft,os "'so hofo III e.''caso' "no "to ~
tereHtcd III the Bae OF railroad a'it othor ecc1r-
tics III Europe, soy that their financial
necnts there now mako thiB objection
to MI Amoricor eocur;t,ca tbot ora
~ anu. I0, eeeot'"up "n,, '.'s.
rayao'e iawiul money. Inc ouleotlon
holds good 70 M large tranBaos'onR IN Tho loan
of money which ia to be paid in currency at any
Wh,1a thoro mnv M. In mucb ororna for t,,o
80 $500 :. ~ ~, .. ~. 49, r".. w."
ae"la o. oa'atS1s ~ ,l''s aospeos' 'no loie 1aes
inas congress ,s evon aooasng .ho QUESTION o.
limo, md consequently is tho mems Of stopping
many Legitimate enterprises TINT would other
GreBBonal discussions ARC therefore iniuring tho
country and depressing itB industries, On the
other land there is large proportion OF tho poo
pic who have been educated by tho political
demagoguos Into tho belief TINT there Is not
enough currency. ThoBo people will continue
to imagine that tho oauso OF the depression is
tho lack OF ourronoy and viii continue to
cnmor for an increnso OF greenbacks to nnko
"cheap money." The moro they c]amor, tho
moro capitalist1 will become sfraid to loan, antl
tho moro business will be deptessod and this
depression beng orroneoualy asorlbed by tho
de1naeoeuog to tie ]acl Of ourronoy, Tho moro
tho people will clamor for " cheap money"
Thcrc ia no way ont of this currency mudlle,
into which politicians arc leading tho people,
but for Congress to
AuTuon1zE FREE BANKING.
II there IL auy mood for moro currency, this
impossible for this country to return to specie
payments at once. There must bo aomo propara-
tion for such change. TO return to specie
payments on any .ons specified day, year. or
oven two yoara hence. would produce groat
md overwhelming crisis, unless there WAS soma
preparation for it by tho contraction Of grocn-
lacks aud a general CLEARING off Of indebtedness
before tho specified day arrived. Preparation
for specie payments is therefore absolutely In
lispensablo to prevent, disaster. There
is no preparation for tho resumption
Of Bpecio payments TINT will bo so
oirectslnl as to allow tho banks to issue all the
currency tloy please, provided the increase Of
bauk-notes shall be concurrent with a contrao-
tho increase of National Bank circulation.
II tia possible to increase the aggregate vol
umo of papor-money circulation, aud ut tho
yame time increase tho value Of every dollar Of
it, by allowing the incIoaao Of National Bank
Motos, aud, ut tho same timo, contracting the
greenbacks in tha ratio of ono dollar of green
back contraction to two dollars OF inoreaHe Of
bnnk-noteB.
On tho 2Gth Of 1ast December the National
Banks held S104 100000 of greonDaoks, as
lega4-tepfer reserre against VBlO, 600. .00N Of
banl-note circulation, and $500, ,00O, 900 Of de-
,posits. There is no mems OF estimating how
long it would take. under r Frec-Dank law, for
tho Natlonal-Danl circulation to reach $780,
100000. But whenever it did reach that amount
Concurrent with contraction of 81 Of groon-
6ncks to IN Increase Of 80 of bank-notes). tho
deposits Of tho National Banks would also have
incrcasod largely, and, inatoad of $104 600 900 Of
greenbacks for total reserve, aa now, the banks
would lind it necessary to hold, probably, $780,
OOO, 600. But by that time tie nroonbacku would
have hean roflneni tn ao71 ann Inn f,,nlesa (nl,
non, ;.,t,atn ~, ~ ~ n,,,t,,,r;soff;n,s ~ H.
HIGns iates nnnt ~ nno "utnot'1ntlon ~ ~
Sas,uoo,ou9): " n W. ~ acen a 'Icn 'uHi .,io
BANKS and tue treasury would Ao!u az tho
EreenhaeMks gig IN eHiatonce except sou 0oo ooo or
.G0, 900 900, and thorc il every to boliovo
that with tlis amount or oven double as much in
nctupI o;rculot;on fin prcen1,ocha ,ynutd ho nt
r m y tat ~ TX w mou @ so wo q
M ~ " ~ atna, - ;n1,,aa ~ .,nont;on ~ IL on