New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-04-04
WORKINGMAN's VIEW OF TIE CUR
RENCY QUESTION.

RENCY QUESTION.
i, We publish in another column the al
gument of a workingman against the pre-
posed increase of legal tender to tn
amount of S44,000,O0O, which, from tn
narrow standpoint taken by the writer
appears to be correct enough. There Cal
be no doubt that if the value of currenc
could be kept at high rate on account Q
its comparative scarcity, and employer
could always provide the laboring classe
with plenty of work at fixed rates, tn
latter would receive substantial benefits
But currency is subject TO such violen
fluctuations, like the ebb and flow Of tn
tides, now abundant and again extremel,
tight that these who depend upon Dor
rowed capital to conduct their business O.
move their crops often lose all their pro
fits in enhanced rates Of interest
There is no well settled rule by which
to determine what amount of currency is
necessary to conduct the legitimate bust
ness of the country. But it is reasonable
to assume that it should keep pace with
the demand for it. We have at present
but two kinds of currency-b OF
paper-legal tender notes and those OF
national banks. Both represent debt OF
the general government. The first named
bears no interest, but the government
pays six per cent per annum on the other,
and indorses them in addition. AS the
| necessity for the increase of currency
does not arise from any want of the
government, it does not follow that the
additional issue would be so much
added to the debt. As the treasury is in
no immediate need for money, the legal
tenders when issued would doubt
less be exchanged for Understanding
debt, thus diminishing the annual expendi-
ture for interest. Could we exchange the
100000, 600 national bank notes for legal
tenders and take up the six per cent bonds
pledged with the United States treasurer
for their redemption, we could effect
saving OF S1S,O0O,0 600 in gold per annum
which We now pay to the national banks
for the doubtful privilege of indorsing
their paper. We would, besides, have as
good currency as we now have, because
every dollar in national bank notes is, by
law, redeemable in currency. Legal ten
der is the cheapest form of debt the Uni
ted States has ever contracted. We're it
not for the distress occasioned by with
drawing large sums Of money from great
commercial centres, the government could,
by this time, have retired at least $780,
600, 900. But there comes season of the
year when a simultaneous demand
springs up all over the agricultural |
regions Of the United States for |
ready cash. The exorbitant rates received |
for interest during such seasons deple.es
the bank vaults, depreciates securities,
lepresses the prices Of grain, cotton and
al other marketable commodities, which |
in turn distresses the producer, and he in
urn is unable to give his working men full |
wages ex cept at loss. This affects the
interests of the laborer when the time
comes for Encouragement. The planter or
armer rem embers his losses and finds he
AN not pay twenty dollars per month, as
lie attempted to do the season before. He
nd his neighbors, therefore, agree to give
,ut thirteen dollars, and the laborers are
to accept this because there is
lothing better to be done.
If the Secretary of the Treasury had had
be authority last fall to exchange forty
our million dollars Of greenbacks for six
er cent bonds at the market price, there
7ould have been no panic. This State,
'r instance, and every important interest
! it would have been saved from heavy
uses. Our banks would not have been
ompelled to practically close their doors
} their depositors, nor employers to sell !
ertified checks at discount of five to
N per cent for money with which to pay 6
leir unaffected working men on Saturday {
is, however, impossible for even the I
ost favored of the working classes to es. c
'pe the effects of a permanent depression '
financial business. They are either 2
rown out of employment or compelled r
work for less money. Many of them v
} not suffer in consequence Of a tempo
ry arrangement, however severe, unless il
results in the absolute ruin of their en- G
oyers. In such cases they are thrown O
It Of work when there is none to be had. b
lere are SO few of any class that would S;
It be endangered by panic caused by e
hit money market that their influence 81
ust necessarily be disregaraedi in shaping t.
yislation. A
a VOICE FROM WALL STREET. y
IL 4 - 1o,~ T.. |