Knoxville Whig and chronicle. [volume] (Knoxville, Tenn.) 1875-1882, 1875-09-15

pansion and unnatural imitation of all
values caused by the war? We think
it is clearly the latter cause and can
not be traced to the former, because.
as a matter of fact, there has been no
contraction of the currency since the
war, There have been years, 1867
when there was q temporary CON
traction of $44,OOO,OOO, but the vol.
ume of currency is greater to-day
than it was in 1868. This fact must
/ be remembered, because if it be true.
then the depression in business is
not the result Of too little currency.
Those who contend that there
was more currency in 1868 than
there is now. claim that the 80
bonds issued by the Government were
currency. But they lrerc not 4 legal
teDior for debts. and were from , to
per cent. discount for grcepJocls ud
national jank notes. They did not
therefore circulate rs currency. as all
our readers well know. The com.
pound interest notes were at q premi.
um, and were generally boarded rs
much as gold or silver. The 3 per
cent. certificates were counted as re.
serve by the banks, but the gold GER
tifcates are now so counted: there
fore one affects the other. The cur
rencv Of the two years. therefore.
compares as follows:
1885. 1875.
GreenLacks .....S432Gs7, 900 S374,s24,9s5
Fractional........ 25,Oo5,OOo 4I,l45, 1893
National bank
notes ......... &c. l71,OOOOOO 34S, 937, g39
To,als........sG2s, 692 900 S76i,9Os,8 I7
2s,692, 900
Increase. .............. 2i03l7
But the free banking law of the
last Congress increases our present
currency, excess still more. In 1865
the banks were by law compelled to
hold % per cent. of circulation
locked up in their vaults. which re.
serve then amounted to SAP, 100000.
Since then, national banks have in.
creased, so that last January this re-
serve amounted to SS7,5OO.OOO. BY
the free banking law this large re.
serve is set free. and ddded to the car.
rency. Does that look like contrac.
ton?
With these changes let us again
compare 1865 with 1873, at this date.
and see how we stand. thus:
Total circulation
in 1865, .........S G2s 1892, 600
Deduct reserve, 42.75O,OOO
Actual available
circulation. 35S5,OI2 900
Total circulation
in 1875, ........ 7649OS3I7
Add reserve,...... s7,5OOOnO
Actual available
circulstiou,..." So, 4O8,3l7
Increase cquiya-
lent to..""..... $3.50, AGO. l7
There is, then, no possible doubt,
but that the CHRoNICLE's position on
this point is correct, as official figures
show. But if we have not yet a sui.
ticient volume of currency we can
have all we want under the Free
Banking Law. If trade demands
more currency, why is it not secured
by more National Banks ? If the
trade Of the country demanded more
leather or iron, or flour. it would be
promptly forthcoming by new tanner
les, furnaces and grist mills. Why?
Because the demand would make the
production Of these articles profitable.
If more currency is needed, would not
capitalists be quick to convert gov
eminent bonds bearing only five per
cent. interest, into National Banks,
with a currency which would bring
them ten or fifteen per cent? Most
certainly they would. The depressed
business grows largely from a want
OF confidence ofmoney men in the
future. Here are the Democrats Of
Ohio, threatening reputation and in
hation. and an unsettling Of all values.
Who cares to start into business with
an uncertain basis for money? A man
with means hesitates about loaning
out his money for year because he
does not know what the money to be
nail l4.I- .,f a., 81 g a. r-g.... .....--