The Cairo bulletin. [volume] (Cairo, Ill.) 1872-1878, 1874-04-26

lions Of dollars. The amount in ac-
tual circulation was actually reduced
to three hundred and flty-six millions
of dollars, at which point congress
passed the act of February 4, 1865,
suspcnding the further reduction of the
currency. The forty -four millions have
ever been regarded as reserve to be
used only in case otan emergency, such
as has occurred on several occasions
and must occur when from any cause
the revenues suddenly fall below the
expenditures. And such a reserve is
necessary, because the fractional cur
rcncy, amounting to fifty millions, is
rcdccmablo in legal tender on call. 1t
may be said that such return of the
fractional currency for redemption is
impossible; but let steps be taken for
a return to specie basis, and it will
be found that silver will take the place
Of fractional currency as rapidly as it
can be supplied.
A SYSTEM or FREE BANKING
When the premium on gold rcachc.
sufficiently low point, with the
amount of United States notes to tic is
sued permanently with proper limits,
and the Treasury so strengthened as to
be able to redeem them in coin on de.
mand, it will then be safe to naugurate
system Of free banking, with such
provisions as to make the compulsory
redemption of the circulating notes Of
the banks in coin or United States
notes themselves redcemabe aud made
equivolentto coin.
THE REVENUES SHOULD BE IN
HEAsED.
AS measure preparatory to free
banking or for placing the government
in condition 10 redeem its notes in
coin at the earliest practicable moment,
the revenues of the country should be
increased so as to pay the current ex-
pcnscs, provide for the sinking fund
required by law, aud also surplus to
be retained in the treasury in gold
GOLD MUST BE HoARDED BY THE GOV
ERNMENT.
am not believer in any artiicia
method of making paper money cqua
to coin, when coin is not owned or hel,
ready to redeem the promises to pay
. aud Is valuable exactly in proportion I,
, the amount Of coin that it can be con
, verted into. While coin is not used
= a circulating medium or the currenc
/. of the country is not convertible int
it at par, it becomes an article of com
merce as much as any other produc,
y The surplus will seek foreign market
: as will any other surplus. The balanc
OF trade has nothing TO do with Tia
question. The duties on imports be
> ing required in coin, create Unite
u demand for gold, and about enough (
G satisfy that demand remains in til
Il country. TO increase this supply,
u see no way open but by the governme,
" boarding through the means aboy
=. given, and possibly by requiring II
national banks to aid.
"A MORE CIRCULATION NOT NEEDED u
i'll THE COUNTRY.
G. 1t is claimed by the advocates of Il
to measure herewith returned that the
be is an unequal distribution of the banl
m ing capital of the country. was di
G. posed to give great weight to this vie
n. Of the question at first but on refe,
~ ton it will be remembered that thel
n, still remains four,mlliOns of dollars c
nc authorized bank note circulation n.
j. signed to States having less than the
1t quota of bank circulation, with the OF
n ton Of twenty-five millions to be take
re from those States having more tina
tn their proportion. When this is all t;
he ken up, or when specie payments a,
ID fully restored or are in rapid process
to restoration, will be the time to considc
A. the question of more currency.
t, L. S. GRANT.
2. EXECUTIVE MANSION.