The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1874-02-10
EoUALszsNG TEE CURRENCY.

Is there too much currency in the north
and cast that is, more than enough for the
transaction Of healthy business ? Let an
individual wanting money, forthe transac-
ton Of legitimate business, apply to n coun-
try bank. and how many times out of ten
can he he accommodated Those trying
days in the fall demonstrated that two con-
ditions were necessary to cause panic
q want of confidence andan insufl1ciency of
money. With the country rs prosperous
as it then was, a want of confidence could
not be produced if there was money enough
to meet the legitimate wants of the people.
Whether other portions of the country have
a sullcency OF money, we know not. If
they have not, ii will, command high per
cent. for lis use and, thus, tend to the de-
pletion Of those parts of the country better
supplied We do not believe that an equili-
brum or equal distribution of currency
can be obtained by legislation. High rates
of interest and good security will draw
moGey from one portion of the country to
another. To Illustrate, let us suppose
case I'm individual has few thousand
dollars to Loan He resides, we will say,
in Rutland The legal rate Of interest is
six per cent. and ii is all that a borrower
can afford to pay. twenty-five, fifty, or
q hundred miles from here is a state allow
ing interest NJ eight, ten or twelve per cent.
and borrower can afford to pay that rate.
This, of coursc, is n supposed case Three
men residing in Rutland, each desire TO Dor
row two thousand dollars, for which they
can ard will give security equal to five
thousand dollars for every thousand dollars
borrowed. but can pay but six per cent in
tcrcst. twenty-five or more miles distant
are three other persons, each desiring the
same amount, offering the same security,
but able and willing to pay twelve per
cent. interest, and are authorized by law to
pay it. Will tho money remain here or 90
to the other state There can be only one
answer. Legislation could not prevent an
individual looning his money in another
state. II will naturally go where it is most
needed or where 1t will pay the highest
rate Of interest. 1t seems to lis that the
endeavor to distribute national bank curren-
cy according to population, by act of Con-
gross, will prove equally abortivc If the
twenty-five millions OF dollars of circula-
ton, authorized to be taken from the east
and north, il so taken and distributed, is
there any assurance that it will there re-
main VIII it not, on the contrary, flow
back to the places from whence it was
taken If it is there needed, or to other
place where 1t can be used to the greatest
advantage? The true equilibrium and
equalization can be obtained only by free
banking. The bank notes are secured be-
You'd all contingency, and the public WILL
therefore, suffer no loss. Banks will not
be established in places where they are not
needcd-that is, where they cannot profita-
bly, use circulating notes, No more bills
will be issued than it is profitable 10 issue,
or than business requires. We ali know
that more money is required to carry on
business al one season of the year than
another, and that these seasons are differ
ent in different sections of the country.
These notes would circulate from one part
of the country to another as needed there
would be no ''glut" Of currency, but money
could, at all times, be furnished as needed.
Let us try free banking for season