National Republican. (Washington City (D.C.)) 1872-1888, 1874-04-06
THE FINANCIAL SITUATToY

II is not very gracious, perhaps, when both
Housesof Congress are laboring so assiduously
to perfect their currency and funding bills, to
urge them to greater expedition. Neither is It
reasonable to suppose that anything convincing
regarding the necessities of the country for an
early adjustment of the currency question that
has not already been said can be added with Of
fective results. Those who agree with US that
the late panic was caused by want of conf
deuce in the soundness of the business opera
tons of the country rather than from an insult
ficiency of the circulating medium-that Il was
produced by stoppage of circulation instead
OF the want of the wherewith to circulate>-do
not see the necessity of an addition to the
volume of our medium. They believe
and justly so, that an increase of one
hundred millions or two would only be provo
cative Of more panics and greater want of con-
fdence. This appears to be q just and logical
conclusion. If such are the facts, and If the
want of confidence complained of is owing to
the irredeemable character Of our greenbacks,
then provision for their redemption in coin is
the antidote-the true creator or inspirer CT
faith. If we would restore confidence, the re-
issue of the forty -four millions of legal tenders
should be accompanied by fixed and definite
policy of redemption. ...--
/ Legislators should know that the principles
which govern the personal finances are pre-
cisely similar to those which rule in national
affairs. Why cannot Mr.. Morton and General
Logan pay all their personal expenses ia Wash
ington by given their o U's, payable in. pro-
fessional services and redeemable in nothing
az IL l.
ing interest and to mature at fixed datel
Simply because their professional services are
not in demand by every one from whom they
wish to purchase, or because the time they
have to give to such services Is not equal in
demand to their expenditures. We all know
that If we would have good credit we must pay
promptly at maturity. The legal tenders are de-
mand notes, but, like due bills, have no fixed
date for redemption, nor are they receivable by
their author for all descriptions of indebted
ness due to that author. The due-bills of
Senators might be and remain very good II
given upon their salaries until 1t should get
abroad that they had made an over-issue, when
they would Immediately sell at discount, and
such discount would be exactly in the ratio of
the reported excess of issue. A celebrated
Boston firm not many years ago made tre-
mendous effort to monopolize the clip Of wool.
1t sent out its agents to all the wool sections
with orders to buy and draw on the firm in
Boston. One of these agents found large lot
Of wool in q region where the firm was not
known. Atelegram was sent to Boston making
inquiry as to the responsibility of the house.
The snfwer was laconic but illustratiye:
"Psper worth millions; word not d-n."
This shows the difference between negotiable
and rsdeemable paper. Uncle Sans bonds
bearing interest and maturing at certain date
are good everywhere. His due-biIls, payable
at convenience, when issued in excess of the
necessities of the country for making exchanges
are good for nothing, because they do not bear
interest, are not redeemsble, and earn nothing
when lying still. and will not buy bonds which
do bear interest. The recent want Of conf
dence, and the fact that they are below par, is
evidence that there are more of them afoat
than is necessary for making the exchanges Of
the country. Let them be made convertible
into interest-bearing bonds, or redeemable in
coin, and confidence will at once be restored in
their validity and value.