The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-02-26
u.a Two sides to the Currency.

tho Two Sides to the Currency.
The hard. money advocates are essaying 10
bring their opponents Into disrepuse ey ea'i'
;no Them "inHationists," and these may re-
tort by styling the hard.money Resumption
fsts .nhlebotomists." They would take
,he bottom dollar OF the people, and set on
che Ieeches to depe'e them and enfeeo'e oil
The public energies. They are the de-
p,e,crs." They would further reduce the
paticu, who IS feeble and exhausted instead
Of non.ishing and strengthening him oy a
liberal diet. Mr.. BAGsHoT, the founder az
che new school of finance, compares the con-
ei.ion of a community oppressed by panic,
and sudden contraction By boarding and
cur,ailing discounts, TO the invalid, weak and
feeble from disease. Depletion in bis condition
would be certain death. He must have
nouris hing food and tonics. So the people
that are run down by financial CONFUSION,
and the consequent money famine, must have
relief through more currency. To save the
best interests Of the land from the terrible
consequences of shrinkage-" depletion =
more money must be put afloat. The patient
must be strengthened and restored 70 heaitn
,efore YOU can consider at all the question OF
curtai,ncnt of the paper medium. And the
beauty of this treatment is that the festofa-
ton Of the patient-in other words, the re-
establishment of confidence and the revival
of trade and industry-gves health to the
currency and easily settles all the trouble
and disturbance that may have existed with
regard TO It.
This idea Of Mr.. BAGEHoT's is strictly cor
rect, and has always been carried out IN
every panic, followed by suspension, in this
country. In all those cases the State banks
and, while it existed, the National Bank with
them-freely issued their notes the instant
Of the suspension. Money soon became
plenty, discounts were liberal, trade re-
yiYed, manufacturing was resumed, ana
thus the country was placed in the very Des,
and safest road to an early resumption.
Without the relief in this way given to the
country the ruin of all branches of occupa.
ton voeld have been almost complete, and
the public energies would have been SO
fearfully paralyzed that long years would
have ensued before there were signs Of re-
euperation. Under the shrinkage of values,
general ruin would have fallen upon all
businessmen, and an entire new set of men
would have to take their places before the
work of reconstruction could be commenced.
These statements and arguments cannot
be denied.
Then, what is the practical good of the
opposition to a moderate increase Of the eX-
eel!ent currency We now have? Its value
cannot be impaired by the proposed increase
OF its yolume-an increase demanded by the
increase of use for it, as well as because
OF the boarding of it by the people, who,
knowing its value, arc holding it as the safest
form In which they can put their wealth.
The shrinkago already has ruined thou
sands and the liberal treatment of Issuing
more currency will alike prevent continu-
ance of the tendency to shrinkage and re-
store to commerce and industry that life,
confidence, and vigor which will solve the
whole question Of the currency with entire
ease and success. The phlebotomsts >
would, on the other hand, postpone the day |
Of money and commercial reconstruction to
the very great injury of all popular interests,
while they alone would be benefited. The
l:aders Of that merciless party live on
the people and profit by their dis
s-esses. Immediate resumption puts their
securities upon par with gold, giving them |
Twelve per cent. profit but it would grind
the people into dust aud continue the army |
Of unemployed people. that live by the |
charity CT their neighbors. What terrors
for the people are enYeloped in the black |
'>l OF the hard-money programme. What
rNcrs Of tears and bleeding Of hearts do
'he<e memorable worshippers of mamInon
demand, that they may be made richer. They
would Dc clad in purple and fine linen, ana
least, and pat their bellies, aud glorify their
alt, in the midst of general distress ana
;,syerty. They are not OF the people. What
arc public distresses to them with tnelr
boarded millions and their patent rings WIN
which TO wiring the very hearts olooa
from tue children of industry and the toi'-
ing multitudes, who do the real WORK III
building up the wealth and prosperity OF
thc nationi