The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1875-11-05
ruIE CURRE~Cv QUESTION.

What amount OF currency is nee
essAry to carry on the business OF
the country, is a question that is
now agitatiDg the country. Bust
ness ID staguAnt. Can anything be
done to set the wheels in motion
or. shaIl we sit still waiting for the
machine to start itself? We are
told by some that we have too much
currency so much, indeed, that its
value is deprecated. We are told
by others that we have not su1hcient
to do the business OF the country,
which has expanded immensely
since the rebellion, aud that more is
wanted to oil the machinery, SO that
the wheels OF trade can again re-
vOlve with ease. Let Us consider
these questions.
We are Informed that before the
war we had over S2OOOOO,OOO OF
currency now we have, greeubacks
and National Oauks together, 500,
OOO,OOO-Lhe parties suggesting such
comparison seeming to forget that
we also had NJ the former period
over 5000. 900, 900 of gold and silver
currency, which is now entirely
Withdrawn from the channels OF
trade; also, (and this 10 q point
which l think is very generally over
lOOked.) that private credit, individ
ual notes, "bills payable" &C., are
very much curtailed. Formerly, bu-
siness houses enjoying such privi-
leges, purchased their goods, wares
and merchandise, on q credit OF six,
eight aud even twelve months now,
that currency was made plenty by
occasion OF the war, that credit lie
very much shortened, and thirty,
sixty or ninety days take the place.
Let US calculate the difference In
this one item OF credit. Say the bu-
slness of New York City, for in
stance, In one year amounts to ST.
200, 1000. Her imports of foreign
merchandise amount to one-half OF
that sum. Certainly her sales OF To-
mestic productions are equal to ~
much. Let this amount be sold on
an average of eight months credit,
and we have credit OF $500, 900,
900, ($l00. O00. goo per monthly Now
reduce that credit to an average OF
sixty days. We reduce the amount
of credit to S2OO,OOO,OOO, . cOntrac.
ton OF $500, 100000. Now then this
amount of business will again be
done when confidence 10 restored in
the business community. Shall that
credit (JOr credit it certainly naust
Oe) be as 1t formerly was-individ.
ual credit in the shape Of prOmissO.
ry notes, gradually extending the
time to three, four, six and eight
mOthsI or shall the government
furnish the credit In the shape o.
more greenbAcks? Which kind Oi
paper would Our. business men rath.
er hold, the paper OF houses doing
business ia Missouri, California OIL
Texas, ETC., parties known only {,
themselve', which paper to- be cash
ed requires not only their guaram
tees. but sl,O Is Shdce, or the pape
of the government, which all ar,
glad to take at lis face value, aud re
quires no individual guarantee?
| Another suggestion sriscs: VIVA
should DO the character OF this Gu.
rency-that is, shall il be Issued di
rectly by the government, or ,hrOuy
National banks2 According to pres
ent arrangements, One-half OF on
currency is now issued, by u set o
ms buttons chartered by tho gov
ernment-prOtected more than AM
other branch of business ever wa
by the government, doing busincs
on ba-is furnish ed by the govern
ment Cher bonds) on which the gov
eminent still pAys them an interse
at the rate OF about $4,000 900
year, and at the same time guaran
tees the notes of tho bank, taxin,
said institutions at the rate OF 81,
100000 per year, thus costing tn
people $13,OO0.OOO a year for tina
currency.
Again, according to present ar
: rangemenis, National banks which
In largest cities especially, are Assoc
ciatcd together la - measure, an
work In concert, have 1t in thei
power (Which power they have ex
ercised for their own protection, q
the cost aud disadvantage OF tn
public,) 60 cause q stringency L
. the money MARKET, by locking u
the currency, or, as the case is at th
present time, lOanlng it only on snc
cOllaterals government bonds, ban
/ stock, &c.,) as Is not generally no
, possessed by the manufacturing an
: commercial community. Money
said to be very plenty and yer
cheap in New York but unless 20
! have the cOllAterAls of the chsracte
named. you need not try to borroN
any. And why is it cheap and pleu
typ Simply because those who poi
sess such collaterals don't want 4
and are not borrowers. The yer
possession OF such collateral
is evidence that the possesso
OF the same has surplus capaiIal
and such parties, in times when bU
siness is stagnAnt, merely live upo
the interest OF their Investment
} and rs only unimpeachabIe interest
bearing investments are cOnsldere
good IS collateral, they get the in
terest from their Investments an
have no further need.
Let the government issue green
backs ia exchange for It's bonds, q
the demands OF the currency ma
/ require, putting the interest Of sue
bonds, while In her possession, int
the sinking fund. Then when Their
, is surplus Of currency, as was th
, case in 1866 to 1879, let her offer th
rannla . - - inOaaRunanf Z. A.-l