The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1874-07-17
OUn PINANCIs.

There IL no subject TINT Is engaging
moro earnestly tho attention OF the
thinking mon OF the state than what
might BIO called tho anomalous condl-
ton OF our finances, with M mex
haustibly fertile soil, u thrifty aud en-
ergetic population, I'm almost bounds
less domain, and u debt which, COM
pared with the debt Of the other states
of the union II irllling and lnslgnlll-
can't, II would seem that The eXchequer
of Texas ought to be full, or that fit
were not, capitalists would rush TO sup
ply her on the slightest lntlmation
that such assistance would be accepted.
Neither, however " the case. She has
no money IN her pui'se--not enough to
meet her daily living expenses
her credit Is 80 Frustrated that her
agents beg In vain for Announcements
at ruinous rates in the money conters
Of the country.
IL not our purpose to take Il retro
spective View and Inquire into the
causes that have led III into this mis-
cradle plight. Looking backwards
does very we'll where the object Is to
train the moral nature Of the indivld-
ual In these rushing days Of he nine
teenth century the time cannot be
spared to indulge in II in matters of
state polity. nl'tt
All that we shall endonvor TO Ito Is
TO suggest scheme by which we may |
be extricated from our present embar-
rassment and by which the credit Of
the state may beplaced on II rock from
which no hostile influences can shake
1t. And In order that we may set forth
clearly the grounds upon which the
practicablllty aud 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 us to what was the real na-
ture and effect of this bill, we think |
there can be question Of one thing.
that Is that $il,Si0,0H that were here
tofore required to- be held rs 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
Familiarity known as the redemption
cities, amounts TO $lO6, 055,0l0. by the
former law these banks were required
to hold twenty-five per cent of II re-
serve, or ST., 5l3,Ol7. The circulation
of the banks outside of the redemption
cities amounts to S236, 1884. These
banks were required to keep OH hand
IL reserve of fifteen per cent, which
amounted to S35,4l4, $50. The total of
reserve required on circulation being
S61 ,95S, 256. Under the new law all the
banks are required to keep reserve of
only five per cent. This makes total
of ST. III, 542 on the whole volume of
the circulation issued by the BANKS
both in aud out of the redemption cit
les, which is Sl4,S40,674 less than the
reserve required under the old law.
This large amount of revenue being
released from the bank vaults, goes ut
once into circulation and becomes u
loanable fund. Its effect has already
been felt III the eastern cities, and
there is no difficulty there now in pro-
curingany quantity of money, on secu-
rites that have proved to be prompt
in paying 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 1t may be desired at seven per
cent.
five are correct In the foregoing as
to what the monetary status in the
eastern cities is now and will be in the
fall, then 1t must follow, with the
crop with which the state Is
that the financial stringency
under which We have been suffering
for months must be relieved and that
money must be comparatively plenti-
jul and cheap In Texas.
What we would suggest, then, is that
Governor Coke withdraw from the New
York market the bonds ne has been
1ainly trying to sell there at eighty-ilve
cents on the dollar, and issue patri-
,tic appeal to the people ofTeyas, ask
ing them to come TO the rescue of the
state government and invest in these
bonds at ninety. Let him point out
10 them that the promises of the state
are hawked about without finding a ,
purchaser, not because the state is EN- /
,arrassed with debt, but because her
sood faith in meeting payment is ques- !
toned, and let him arouse their state
ride to such point that they will de- '
ermine to live without asking the aid I
Il outside spectators. 10 take up the {.
whole issue Of bonds at par that State Z
Agent Moody has been laboring for a
more than d hundred days to dispose y
Il In Wall street, would only require \
yer capita contribution Of seventy cents q
rom the people Of the state. Surely II