The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-08-13
National Finances.
=, LETTER FROM IN GovkRkoR GEA7z BROWN
ST. Louis, August I, 1875.

To the Editor of the Globe Democrat:
sam. Misrepresentation in the newspapers
concerning my opinions On the tioaociai qnes'
tons now before the country induce me 10
avail myself of your very kind otter and sub
mil this communication.
There is really no more reason why the
limited States should farm out to monopoly
held hy bankers the issue of its currency
than there would be in letting 10 any private
CORPORATION the coinage ard emission or al
ia gold and silver from the mint. Any sucn
system. with lis great power OF coneentra'
ton and control, is capable OF eXerting, as we
already see. disastrous Influence on prices
ard pe,pttually invites to panic IN the
mos ey MARKET. All these considerations, ar
rayinr themselves as they do against an 10
tefm.date agency for putting tortn clrcu'a'
ton, make it the clear duty OF the Govern
meut 10 resume is legiimite function.
There are likewise many advantages, SOCIAL
and rcforma,ory, other than those already al
ycrlsd TO. which would attend upon direct
},aoai-,rnder is-rIe. H. would at once place
thc emission 81 currency ia the hands Of IN"
Government. no. rs party interested eieher 10
| contraction or irhation, az means whereby
| Ia .tY,.t the debtor or creditor parts Oh Tue
romraupitr, Tut as SOLICITORS only Tor gene
raj ,rlhIic welfare. Il ha3 become 100 llHch
| q prIcticc amongst u, TO use administrative
.ypliaacc ~ far IS practictb" Tor S'imt'asihS
,nec,.i interests and iayoriDg certain GRASSES
| r. thcD. sven On@ department can DE "lto'
! drawn from that category, 1t viii De great
advance in the right direction. Further
| more. he currency itself will derive h,ch
additional value over tnat now IN circulation,
| Irotn It's reception for customs so i@r rs may
comfort with existing Cb'ig ilionS. thus en-
| larp,ng lis uses, and from being received Wild
increased confidence Is representing the
| whole Wpalti, OF the nation, its 9old includtu,
rather th.n Il speclfi5 margin OF bonds
Rv this Grange we shall be enabled also
no ADOPT 4. better method OF arri''h"
It = tine Knowledge O! what volume
of currency the country really needs. Few,
even Ct those best informed, agree as to villa,
M, volume should be, aud even those VINO
10 agree can assign no valid reason lot the
conclusion reached. 1t would certs!niy be
most desirable If m elasticity were gwen 10
our medium Of exchange. The want OF IL l.
tel, to day, in presence Of the ACCOMMODATIONS
IN The banks. just as 1t was often ltlt undeT
he 50 c died Eard.mcncy dynasty IN Lie SUI
pye;ne difficulty OF expansion "Ehout ltn-
PAIRING credit. II is very generally De;leFeo.
however, that this problem i easy OF sol'-
ion where direct egal-terder circulation
obtains, impossible rs that has proved under
other conditions. The pr"posluon that meets
y,,h most fsyur in this behalf is that the M.
lronal Government, at the time OF suDsI'tu-
ting is lenal-,cudcrs for the present na,ionsl
0ar k currency, shall provide hona III DE-
nominations OF S100 aud upwards, con.
Il, ini
or GOLD, at the option OF the Treasury,
aid bearing $50 per cent. interest, pay
able scmiaunualy at any sub-treasury in the
Urttd S'ales, As this is about the average
yalu. of uluucY in all other countries, such I
rate would place our own country on q level
with that OF foreign nations. II is also about
the rate paid by tanks themselves upon de-
| posts. The creation Of such an inlercon.
| ver.inir bond would at once l'iDc2 IL Wllhin
! the 10 nrr Of the business wants Of the COM
muL;'y TO conLrol directly the volume o.
curr ncy, calling il forth in time OF necessity
by converting The 3.Gj bonds in such amount
add >uch localities a required 1t, or return
ing tae currency back or reconVerSion where
its oyrr-ttvun dance caused it TO lie idle. And
why should not our business wants DE tht
measure Of our currency? The most potent
The pre.eu, system of bank issues and de.
fpnd the la.c policy of contraction is that tn:
amount Of circulation equals the wants OF
busipes.. II that be sound argument, why
is it not equally sound in practice! Aud
who can best determine what tho>t
wants are but the business community
itself! The process under this plan
of adapting the cl,rrcocy to the necessity
| -; nII n.
Under any other, either an act Of Congress
policy ~ the Treasury Department, Or tic
creation Of new banks, it must he. intricate
protracled, costly. It&oud certainly, ais 3,
tie dictated By The banks, not by the bus.
less of the country. Would that be far:
Has not siniIar dic:alion proSlra;ed all uul
large industries ALREADY! Will not any n.a-
nipula;iOn Of the volume Of currency other
than The direct demands Of trade ac'ing unOn
its own impulse necessarily involve fatal de
ran9CmentS? The variation Of that demand
in the UuittG States at different seasons o;
the year is perhaps greater than in any other
country, SO that elasticity must be easy TO be
effective. 4 liked vo!ucle CT currency, on
the other hand. increases the danger OF a
crisis, as was sufficiently shown in 1878,
when the biahs violated even their Own
charters in order to lock up the currency,
pending a clamor for the issue Ut the IA, 900,
900 held in the Treasury.
1t has been asked, Bow can such 3 50
iutercOnvcrtiDlc tOnd be put forth by the
Government, aud what is TO prevent its re-
turn en- nldSSe for recoDversiOn! There will
| not be much difficulty, | apprehend, IN such
| issuing, Us it viii u. once ItfGr most secure
investment for that large amount OF iGlC
| capital which refuses TO trust the Keeping Of
ordinary Ii cal agencies. The Secretary o.
the Treasury eau also be instructed, under
suitable regulation, 10 use them in purchase
Of other bonds, or OF gold, TO call in bel
bonds, just as the retuadiug Of SIX per cents
with five per cents is now tram priDg. A,
the rate OF interest is about as high as that
generally paid on deposits, as the security o
tue nation is far more acceptable than that Of
ANY Individual caa 5e, as The ability TO con
yer, into money will be instant aud constant
a 3 IS bond will speedily attract to the Trea
sury large share Of deposits ted by pri-
vate brokers, savings institutions, anr
even the banks themselves. This viii
soon aggregate TO hundreds of millions
of dollars, tquirtrg only very moderate
reserve TO be sci apart by the Government
for current conyc! sions. Thus almost tht
entire issue called for will be available fol
still further reduction OF the bonded debt
There is no reason 10 app!ehend any eXces
sve call for conversion at any time beyon(
anticipated business needs. The value o
such sale depository of the surplus wealth
Of the masses Of the people would iu i'sel
be incaicuable, botn rs epgenderlng habit:
of greater economy and dissipating au app:e
henslon which has been the cause of mauy
moneyed commissions heretofore. There
would, perhaps, be required other Legislative
| restrictions and PROVISIONS for successful
substitution of national greenback for q
national bank currency. but they are minor
matters of detail, TO which, we may assume