The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-01-09
The cnrre,,cy snsstson.

The Currency pnsss1on.
Congress has tletermiEsa TO fnyite great
many fiuanciers to appear in Washington
and voychsafe ttnae knosledge Of finance
In order 10 aid. the. nations legislators IL
fixing up a financial system that viii be
salu.ary and we'll protected against the
evils which have so cursed this country:
ses' we doubt the wisdom of this expedient
An men much engaged in financial opera
tons are specialists. They have their peeu'
liar lines of business, aud their views are
affected by them. They will be all men Of
experience, and yet they will differ widely
nom one another. Congress may fnd some
thing valuable indeed in the views Of a great
many, and may adyantageously call tbi;
out from the mass Of testimony, but we are
very much afraid that these varying views
will produce more confusion than light,
and leave Congress more profoundly per-
picked than before they heard the 6nan'
ciers.
1t seems to us that tic question OF hnauce
in this country never was so simplItied as II
is at the present day.
We haze an undoubted paper currency.
We never had it before. That is great
point gained. What next!
We want to assure as far as possible me
deposition, to prevent his sudden withdrawal
Of his deposits; because that brings pressure.
What will do that:
One great means Of accomplishing that will
be to make the currency etastic--to give it
the ability to increase its amount to meet the
demands of trade and TO contract itself when
in excess. The issue of interconVertiblllty
bonds bearing a low interest would he IN
efficient agent for this object. Much money
would be absorbed by that bond which
would otherwise be deposited, and thus lie
the means Of increasing the pressure upon
its withdrawal in panic. And the banks
would find these bonds the ready means Of
currency when they were III need
of il. We have great faith in this medium
for the letting out currency and taking up
the slack when III excess.
The postal savings bank wonli be an aux
Hilary in the securing OF deposaors and pre-
serving the even aud regular operations OF
the currency system. But this it may be
will not promptly meet The app1o-
val OF Congress.
We repeat, the currency is the best we
ever had. Every measure that helps to u.s.
sure the safety Of deposits puts us further
away from the dreadful effects OF panics. II
deposits were certainly secured, and the
paper money universally credited, there
could be no panic. Imprudent merchants
and wild spectators would fail without al
ftcting others beyond those who hao oe-
come involved with thtm by trade OF 1rainc'
The whole country could net lie drawn lnto
sen of pressure BY the ipd1scretionS Oh one
,r two JAY COOKIES. 1t is the alarm that fol-
ows a faiIure-the alarm for the safety OF
lcnosits and the drawing of them out that
mis- an end TO discounts and winds up bu.
mess and ruins hundreds of people.
Here is the beginning and the end of the
tject of financial system for the convent
ace and security Of the country.
Then we have tie currency-half the bat
e. Give us the elasticity. No man can get |
le paper currency without securing it more
ian dollar for dollar. That is a guarantee |
lat it will not be loaned to insolyents. That
,cures the country pretty we'll against eX-
80, LOTT f,o snf
biIity bond, and you go far to provide the
leans of elasticity Of the currency, and that |
the surest guarantee against pressure for |
le want of currency.
Let Congress do this, and authorize the
sue of the locked.up greenbacks, and ease
ill he Immediately impaired.
Many schemes are offered. Some for free
anks, and many for putting an end to
ational bank.noles and issuing legal ten
els in lieu Of them. That would be well.
he Government would then be the gamer
ON the destroyed notes instead of the
anks, and in time of specie payments it
'ould be easier to gather up notes with which
draw gold whe1 it might be needed;
,hich would be only for paying duties, We
oppose, as long as the notes and the gold
iere at par.
One proposition is that the bonds of the
'nited States which arc handed to the Gov
rnmeEt in security for notes issued shall
OF draw interest whilst SO held. That
'ould be fatal. The banks would not de-
osit such securities ut all. They would
lake nothing by it, and the inducements to
anking would be diminished, to the serious
,jury Of trade.
1t will be the true policy Of the Govern
lent to reduce the, interest on national
onds. Indeed, the public welfare will de-
land that the interest paid by the people
hall be lessened from the present amount;
ut that the depositors Of United States
onds as securities for paper money paid out
D them shall forfeit the interest upon those
ends while so held is not demanded by JUS
ice to the Government, and would be inju-
ious to the commerce OF the nation.
The civil-rights bill, so prolific of discus
ion, was temporarily disposed Of yesterday