The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1875-12-24
The Currency Question.

The Government made a mtstdke IN paying inter |
sccuyitu of the National Bd,ks, f,stsad Of issM-
ing Grsenbdcks ,chtch pay no tNterest-Ihc Pro- |
ticGSle aud i,5ario.s the credit II the cHanlrx
What e Bdsis?-Whdt are Circulating Mediat |
lsEcoND PApER.l
DEAR FREExAN-want of time must account
Tor my nOn-appea rance last week.
In my frat paper gave an explanation Of the !
workings OF the national bank system: I now
propose to show why the Govcrnuent should |
never have issued a dollar of currency to these
In ss "r se
curty of the notes 1t gives the national banks.
sccondiy, it gives them currency & to M the amount
tion that they keep q reserve OF . per cent. In
hsna Ss wsy dd ID mot Issue
ly s4O0,O0OO0O to the hanks? The answer is OBJ
op , ws nn o, anS rSe enricbins the nriv
legged class. At the commencement or the panic
the amount of the national bank currency was
$50, 100000, or nine-tenths OF the total amount
on which the Government was paying interest
to the na;onsi I'll ma banks The seGretsIy OF the
as follows: "a certain nationa: bank in Chi
ScS in bonds Which cost it .ii5coa in sreenbacEs
The Government paid the bank 5000 In gold
semi.ann4ay which wns worth 1s ss0 IN, 10 green S
$4,000 In national bank notes, requiring 1t to
keep reserve of s5 per cent. T., or ; w 10 he
Ioanng i,s $61 500 and concludes by declaring
that 1t netted about II per cent. on Its invest
ment. Now. this same rate, the interest on
the $500, ,s5s. go In bonds In the Treasury sec,
rity for the $3.50 3o. .ssi of national bank notes.
Nov. ], 1879, amounted to $1g,4HS !c3S, from
which deduct about % 100000 tax paid by the
national banks to the Gover,nment mn zen S and you
national banks to have been In operation on an
amount OF interest annually ut siO,Ooo.OOO We
have s!0o,OooOOo thrown to the d,.g~ in this way
100000 Of legal tender notes it would have saved
those sloo,oo.ooo, and srsentscks would not
the war. And had Congress made the green
back a full iogal-tendcr the greenback would,
The act of 1853, providing for the resumption
OF specie payments, and for the payment in
be paid in coin. was direct violation OF the
Constitution of the United States. which says
b of Now ex s
as It was passed long after the debt was con-
trncted, is an ex post facto law, and, therefore,
void.
THE SHERMAN BILL
We come now to the bill for the resumption
OF specie payments, passed in January. 1875,
and provided for the resumption OF specie pay
bill the erecnback is deprived OF its pertiai
quality of Iegai-tender and gold Is made the
measure, or unit OF currency and the
BASIS OF CREDIT.
"But," some will say, "docs not this act FRO
gold:" Yes; but where are we 20 get gold suf-
aeien, for II this purpose: by the report Of the
handy 1t appears that on Nov. of that year the
and e.ooo.oSo OF s. silver. SnpposinF that. after
jan. |, 1879, $500, OOOOO, Of greenbacks would be
there would be only sis5' 'ococo Of gold in the the
Treasury-and there will not be any thing like
ment would have to suspend payments and
the greenback dollar would be worth only 4Ih
gre sreenSacfs is far above that that sure S and ,Se S
available gold will be far below, we can form
an idea Of the effect this measure would have.
even had we not huge national debt and also
the national bark notes, and ell other bank
for our Rreenhack and national bank note err
cuiation which amounts to about 10000,
the amount being Si,5Oo.ooooco. Bmt the end
sought by the Gold I'oWer is not the resum ption
OF specie payments, 5ut the depreciation Of the
currency: that thereby it may build up the
on the ruins Of industry.
WHAT is BAsrs7
answer, basis Is the foundation which
credit rests. The basis of the greenback, and
the bonds, and all government securities is the
improvements, and cha ttels of the United states
constitute the security of the grccnoack. 1t
gold its circulating value: otherwise it would
only possess an intrinsic worth as a commodity
aud It is this quality of a rare and unstable
commodity which renders ii an unsafe and un
reliable basis OF currency and measure OF value
A medium OF circulation is current sign of
basis-at the back OF it, in the transaction of
business, instead OF the ancient method OF bar
media. Tho media most generally employed
are, metallic coins, paper currency, bonds,
notes. checks, drafts bills OF exchange, clear
ing house checks, etc.
Now all these instruments OF business must
have creditor basis-behind them. Naturally,
the security with the greatest credit behind it
is the one most sought by all intelligent busi-
rency of the Government is in such great de-
mand. 1t lis a current sign which receives cred
II is far superior to the paper OF individ,lais,
which can have at most only local circulation
rHE DEMAND FOR MONEY
greater at some seasons of the year than at
The demand for money varies with the recur-
ring seasons OF the year. In the fall there is
great demand foe money to ship the products
peciai,y the Great west. to the Eastern mar kets
currency. The immeiase e,nsnd $ae oven, the e
money which WAS thus employed socks invest
ern banks, and these banks, in lieu OF more
safe investment. put it into stocks and all
species OF hazardous speculation, and the con-
sequence is when II is needed to meet the wants
Of the Western it is not to be had. tits
in Wall street or lost in some gigan .ic railroad
fraud, and this together with the stealing OF
Government officials and the causes already al
sTRINGENCY IN MONEY,
and times are. .sas a consequence, dull, industry
languishee and labor starves.
lour correspondent here quotes coPiously from
Treasury' to Congress. Now ist' ISIS S ali " Which, @
this week.-ED.l
my next VII. compare the Otlitty OF the
different me diums OF currency, the advantages
and the disadvantages of the various kinds of
money the remedies proposed to restore
ndence to the country, and other important
features OF this subject. Yours &c, j. NJ.
A SHOCKING FATR.-A correspondent of
the Altoona Mirror, writing from Houtztlale,
Clearfield county, under date of the 18th
inst., says:
The saddest accident that has happened in
this community for long time was the acci-
dental self shooting of Eugene WOodn, while
hunting. on last Thursday. Mr.. w., In COM
pany with Harry Test, left this place for Noun
tain Branch. about Ave miles distant, for days
hunt. On arriving at the above NAMED place,
they separated. Soon after Mr.. Test heard the
report OF Mr.. woodin's gun. Noticing stir
I'm the direction of the report, he went to see
what Mr.. w. had shot. when to his horror he
discovered his companion lying on the ground
dead. Two barrels of his gun were dschar rged,
the contents of both entering his head q little
he lpff irun llxh fbr L.