The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1874-02-20

was, at tnat Uato, OutSlue OF tne swing vi |
of efflux and rehux.
Are we not now prepared to answer,
with some degree of confidence, the ques-
ton,
WHAT is. THE MATTER WITH THE
l- a CURRENCY? la III
If it had all been issued, like that Of the
national banks, upon the principle Of main |
tanning an equilibrium between its outgo |
and return, there would be less difficulty |
now in dealing with the vexed question of
resumption Of specie payments. But,
alongside the currency thus BEAUTIFULLY is
sued by the banks, has been larger circu-
lation which was put forth first according
to the sole rule of necessities of the gov
eminent, and afterwards manipulated in
amount according to its arbitrary discre-
ton, under the advisement of the money
lending class. Rltl
AS long as more than half of the pa
| per circulation of the country outstands
| in the form of currency arbitrarily put
forth by the government. having no rela-
ton to the actual daily business of the
community, that circulation cannot be
sound. Its beginning is vicious and its
career is continually unhealthy. Weknow
Of no public dSsigndts ever issued that
ever did, as such, glide into specie cur
rency. We do not think ours can prove
an exception to the rule of universal his
! torical experience. Our government might,
indeed, at any time, by the energy of its
credit, declare the greenbacks to be equiv
alent to specie, and redeem them with
specie but it would have to maintain
their credit against every law of regular
trade and Drt1dent banking r
IMPORTANCE OF ALLYINd THE CUR
RENCY WITH THE BUSINESS AND
PROPERTY OF THE COUNTRY.
The sooner the whole mass of the cur
rency is brought to represent, at every
moment Of its circulation, business paper
founded upon actual transactions, con-
tracted as often as lent, to be continually
returned and continually redeemed at the
maturing of the paper on which i is
loaned, the sooner shall we get rid OF that
disease of the currency which alienates it
from its proper relations with the home
business and foreign trade of the country,
and with the specie and other commodities
of commerce. 59ts
LOANS ON CALL, WITH CoIiLATERALs
PLEDGED.
The greenback system of currency
f created and perpetuates that vicious system
{ of bank loans which is founded upon col
laterals, to the disparagement OF CONNER
cial paper. This'latter paper, which always
has had preference in sound banking, is now
often tabooed by class of banks; and 3
! mottled host of bonds and shares are made
, the ideal of security and safety. Rasf
: speculation is the hideous nursing OF such
a system of banking and currency to tht
: grievous prejudice of industrious enter.
!. prise and methodical business.
Q HOW TO METAMoRPHosE GREENBACzs
e INTO A SPECIE CURRENCY.
J, The true remedy for the present distres
: of the country resulting from the currency
! would seem to be found in some plan b,
3 which the greenback circulation could b.
II gradually inetamorphosed into curren
> cy, every dollar of which, in being put int
circulation, should represent some regula
h business transaction and.a debt due to tn
issuing source. t.f
l. To do so is essential, because it is onl
n by this means we shall adjust the quantit
le Of the currency to the needs of the coun
ID try; that we shall distribute it and kee
" it distributed in fair apportionment, anon
all sections of the Unlon that we sha
l. release it from. the clutch Of the poweri
l. Spectators who borrow it on call upon th
Is pledge of collaterals and that we sha
70 ally it to the legitimate business, and max
h it the representative of the mercantile an
IS industrial transactions of the community
le OBJECTIONS TO AN EXPANSION OF TIL
= PRESENT NATIONAL BANK SYSTEM.
e Except for its involvement with th
q. Objectionable system of currency whic
has been described, our present system {
10 national banks is probably the best whic
,,ee has ever been devised for local purpose!
= Separate their own circulation from greer
.. backs, and there would be nothing in the
I. organization which would present an
: serious obstacle to specie payments. Blu
>. useful as these institutions are for o.
a. commodating the local wants of tt
az country, their number is too gret
70 to allow of their being of any avail
"a regulating and controlling the great con
,r mercial and financial operations Of the nj
at ton. We have now nearly two thousan
70 national banks. The system is not 9
# organism. 1t requires to be unitized.
% q needs balance wheel, in the form of SON
r. central institution, Of large capital, el
"a dowed with the powers and responsible
r. Ties OIL Ine Dank VI LuSlauu, VI VI ErdHC'
;. or of Prussia, or Austria.
Q. HELPLEssNEss OF THE PRESENT M
n TIONAL BANKS IN TIMES OF CRISIS.
re Nothing could illustrate the inefficient
of the present national banks, in peric
of trial, more clearly than the helplessne
Sc for good which they displayed at the begi
i. ming Of the present financial crisis. A
Oh though holding reserves aggregating son
s. two hundred millions of dollars, which,
4 concentrated, could have carried the cou
ne try safely through amuch more serio'
IN disturbance; yet, with those reserv
IN scattered among two thousand bank
Sc they became the means of utterly destro
ia ing the very confidence which they we
OF intended to secure. In the light of rece
~ experience, nothing could be more Obvio'
ng than the policy of devising some means
IS. concentrating these reserves at the gre
n, centres of trade, under one control, al
ed providing that they shall be literally en-
I'd ployed in mitigation of those disorders
~ commerce, periodically occurring, whie
e. they are provided to meet. The non-reser'
re system of England, held and controlle
ne largely by the Bank of England, mu
strike every intelligent mind as infinite
A preferable to the scattered RESERVES of OF
!. own two thousand banks, which experien