Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1875-10-08

lncrease. 4l3o,zlb,3l7
In addition to the increase shown 1t should
be stated that the change in the law in regard
to bank reserves has sdded to the volume of
active currency. In 1865 the banks were re-
quired to keep 25 per cent. of their circulation
locked up in their vaults. That amounted in
1865 to s42,75o, 900. In subsequent years it
amounted to more as the bank circulation in
creased. On the 1st of January, 1875, the re-
serve was $S7, 500, 600. Now the banks are
not required to hold any reserve on account of
circulation. Thus nearly So millions have been
virtually let loose, and If We add this to the
excess shown above we have the following
comparison:
Total circulation ia 1855. .sc2s, ,oe2o
Deduct reserve. 1880 900
Actual available circulation $5s5o42 600
Tstsl circulation In 49,. 764y yeos,3 ,317
Actual available circulation S52 4OS, ,s17
Increase equiVslentto...... $26s, ,I8s, ,sl7
It is true 8 per cent. certificates were issued
at one time, and banks were allowed to count
them in their reserve, but gold certificates are
now counted IN the same way. Leaving out
the interest-bearing evidences of debt, which
were never legal tender, and they could not
be called currency at any time no more than
they are to-day, we find q large actual
increase in the currency. With all the talk
about contraction the Republican party has
been guilty ofinfation. Even in the resump-
tion act of last winter imitation is provided for.
Banking was made free to all, and it was pro-
vided that for every 500 of bank notes issued
only $50 of greenbaeks should be withdrawn,
and that in no event should the latter be con-
tracted below 800 millions. Now, ifthe country
needs currency, as Cary says and ss Pendleton
insists, theleis no law TO prevent it, but very
plain law to permit it. Suppose people hold
ing bonds should deposit them with the Secre-
tary of the Treasury and get 800 millions of
circulation, what would be the result? The
Secretary could not withdraw over "a millions
of greenbacks. That would leave us $50 mil
lions of bank notes, 800 millions greenbacks
and IS millions fractional currency-995 mil
lions altogether. Now, If currency is scarce,
as alleged, and national banking is such q
good thing, as the Democrats say It is, why Is
| It that the currency is not forthcomingl
2. There is not enough money to meet the
wants of trade, we are told. This is a wild
| assertion, destitute of the shade of shadow
of foundation in fact. Every fact that can be
quoted proves the reverse. We have already
shown that if currency was needed there is an
easV way to supply it to the extent of the
bonded debt, and If it were needed 1t would be
profitable to supply the want. The fact that
national banks are voluntarily contracting
| their currency is proof enough that the issue
of paper money is overdone, like good many
other branches of business. Let the demand
for currency increase, and the supply will
grow fast enough.
| 8. This Democratic speakers seek to create
the impression that the adoption Of the Ohio
Democratic policy would initiate the currency.
This we call the great delusion. There are
men simple enough to believe It. Adventur-
ers who have speculated until they are on the
verge of bankruptcy grab at this idea as a
drowning man would catch at a straw, and
with about the same desperation and as little
reason. II Allen, as the old gentleman calls
It, or the Democratic ticket, as Thurman
states It, should carry Ohio by 100, 600, that
would not add one dollar to the currency.
Congress alone could do that, but Congress
wouldn't. The present House Is largely
Democratic, but it-Would net pass bill to in
fate the currency. 1t will not even elect an
infatienist as Speaker. But even If the
House shoulq ipfate, the Senate would defeat
the measure: But eyep II the Senate aAd
House should both vote imitation, the Presi
could be no practical imitation with Grant IN
the White House, and 30 Will stay there until
the 9TH Of March, 1877. Imitation Is, thsre.
fore, out OF the question, except in the way
already provided BY Law, and that way is wide
open TO anybody who can put up bonds
This is perfectly plain. There never was more
IDLE capital in the United States than st thiE
time, and es banking Is free, and, as Demo
crats say, 1t is very profitable, the currency
mouia pe rapidly and largely inflated, II there
available for circulation, But there IL not
CtHeinadu Gdzsffe ~