The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1874-07-18
Oyn FIsANCEs.


men OF the state than what
might bc called the anomalous c0ndl-
ton of our finances. with an mex
fertile soil, II thrifty ana en-
crgclic population, an almost bound !
less domain, and "A debt which, com
pared with the debt of the other states
of the union, is trilllng and insignili-
cant, il would seem that the cNchequer
of Texas ought to he full, or that If II
were not, capitalists would rush to sup
ply her on the slightest intimation
that such assistance would be accepted.
Neither, however, IL the case. She has
no money in her purse-not enough to
meet her daily living expenses and
her credit is so Frustrated that her
agents beg in vain for advancements
at ruinous rates in the money centers
of the country.
1t is not our purpose to take n retro
spective view and inquire into the
causes that have led lis into this mis-
cradle plight. Looking backwards
does very well where the object is to
train the moral nature of the individ-
ual in these rushing days of he nine
teenth century the time cannot he
spared to indulge in it in matters of
state polity.
All that we shall endeavor TO do is
to suggest scheme by which we may
he eXtricated from our present embar-
rassment and by which the credit OF
the state may be placed on rock from
which no hostile influences can shake
it. And in order that we may set forth
clearly the grounds upon which the
practicability and feasibility of our
scheme are based, we must ask the in-
diligence of our readers for recurring
again to the new currency bill enacted
at the recent session of congress.
While there has been Il great deal OF
argument as to what was the real ma
turc and effect of this bill, we think
there can be question of one thing,
that is that Si4,SI0,674 that were here
tofore required to be held as reserve by
the banks to protect their circulation,
are now released and allowed to enter
into the circulation OF the country. In
other words, the bill practically initiates
the currency to that amount. The cor
rectness of this position appears, we
think, from the following statement:
The circulation of the banks in what Is
familiarly known rs the redemption
cities, amounts to SlOG, 05j,9lO. BY the
former law these banks were required
to hold twenty-five per cent of re-
serve, or S2G,5l3,9l7. The circulation
of the banks outside of the redemption
cities amounts to 1886, 294,934. These
banks were required to keep on hand
Il reserve of fifteen per cent, which
amounted to $50, 444, go. The total of
reserve required on circulation being
SCI 1858, 25G. Under the new law all the
banks are required to keep a reserve of
only five per cent. This makes total
of 17,117,5l2 on the whole volume of
the circulation issued by the banks
both in anu ont of the redemption cit
les, which is S44,840,G74 less than the
reserve required under the old law.
This large amount of revenue being
I tl,. hank Nronlt, a
once into circulation and becomes
loanahle fund. Its effect has already
been felt in the eastern cities, and
there is no difficulty there now in pro-
curing any quantity of money, on secu-
rites that have proved to be prompt
in paving interest. This large eXpan-
sion, for it can be called by no other
name, will enable the banks to move
the western and southern products
next fall with the greatest ease, and
will make money obtainable for all
legitimate purposes in any quantity
that it may be desired at seven per
cent.
If we are correct in the foregoing as
to what the monetary status in the
eastern cities is now and will be in the
fall, then it must follow, with the
abundant crop with which the state is
that the financial stringency
under which we have been suffering
for months must be relieved and that
must be comparatively plenti-
full and cheap in Texas.
What we would suggest, then, is that
Governor Coke withdraw from the New
York market the bonds he has been
vainly trying to sell there at eighty-five
cents Oh the dollar, and issue patri-
otto appeal to the people of Texas, ask
ing them to come to the rescue of the
state government and invest i'm these
bonds at ninety. Let him point out
to them that the promises of the state
are hawked about without finding Il
purchaser, not because the state is EN-
barrassed with debt, but because her
good faith in meeting payment Is ques-
and let him arouse their state
pride to such point that they will de-
termine to live without asking the aid
of outside spectators. To take up the
whole issue of bonds ut par that State
Agent Moody has been laboring for
more than a hundred days to dispose
of i'm Wall street, would only require a
per capita contribution OF seventy cents
from the people of the state. Surely
we are not overestimating the patriot
ism and state pride of our people in en-
pressing the unqualified belief that
such an appeal would be responded to
and that in less than hum
bred days the Golfers Of the state would
he full. Then let The next legislature
provide ample means by taxation for
the prompt payment of the interest on
these bonds, and we do not hesitate to
aay that before twelve months the very