The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-03-13
ern and Middle Pacific railroads. When CON-

American avigating industry beholds it
self driven from the field of foreign com
merce by American legislation. The stream
of foreign emigration seems to be turning back
wards TO its native shores. Who has done all
this, and by what means : The partial and
special legislation OF the Republican party
has been adequate to produce this genera
paralysis of industry
| Mr.. Hunter then goes on to show that our
institutions of credit must be recognized on
| correct and just principles We may drive away
money by unwise legislation, or we may at
tract fair share within our bounds by a
proper system, but re cuu,ot maize money By
lar.
Gold and silver are the MONEY of civilized
nations: these come from the bowels of the
earth We cannot create them by act Of Con-
gress but We can create institutions which
make the higher forms Of credit almost as
useful as money. Have we done this? We
have created system Of national banks with
out due consideration, to which we have dele
gated vast and valuable franchises, and of
partial and unequal benefit. The security of
their notes rests upon United States stock, of
which there is not enough in the South and
West to enable them to establish such in,titu-
tons as are necessary. These banks have
been mainly established in the North and
Northeast, where the stocks and the CAPITA
OF the country are mostly concentrated.
What, then, is the species of aid required?
Mr.. Hunter answers that if the country were
repossessed of the old State banks, operating
under safer and sounder system of cur
rency, industry would begin to revive; but
bank paper protesting to be convertible into
specie on demand has never been redeemed
in times of difficulty and pressure. All banks
ia this country and Great Britain have failed
under such pressure. The Bank of England
itself has suspended specie payment for a
long time In this country, the failure of
banks protesting to pay specie has led not
only to general paralysis OF industry, but also
to an undue concentration of the resources of
the country at the great center of trade The
made tributary to certain great cities that are
the centers of trade, and debts are paid in
far higher medium of exchange than was con-
templated by either party.when those debts
We're contracted.
The remedy suggested by Mr.. Hunter is to
treat credit as creditSand money as money. |
Let the government receive and pay out its |
revenues III specie and let the banks deal in |
credit, which they can supply to industry,
md which is safe to return that credit with
| profit in evil as well as in good times Let
he United States ssue the necessary amount
If bills in convenient form for circulation,
With the privilege to the holder to fund them
It pleasure into United States bond bearing
uch a rate Of interest as will make it par
With specie.
This interest should be readjusted annu-
lily SO as to preserve that value, and the
older should also have the privilege of re-
onverting that bond into bills at his pleasure
he United States would thus enjoy the great
rotit of this franchise, and could issue
nough to take up the legal tender notes. If,
erchance, too much should be issued the
vii would remedy itself, for the surplus
'ould be converted into bonds until the
uantity shall be reduced to what may be
-anted for circulation The whole matter
'ould be self-regulating adjusting itself to
ne wants of trade.
In times of deep depression or of very
Ugh taxation the taxpayer might be allowed
} pay half in this currency and half in
oecie. The demand thus created for specie,
'gether with the amount invited by foreign |
ade, in addition to the value of exports sent
self from an unfavorable state of exchanges ,
ore easily and rapidly than it has been in
lie habit of doing heretofore. The capital of
lie country would distribute itself between
le different sections according to the rates OF
reduction, instead of being concentrated in
vored localities by method which makes a
lie rich richer and the poor poorer. r
Here, then, Mr.. Hunter concludes, there is
currency whose amount would be regulated
7 the wants Of trade alone; which would be
stributed among the different sections by
e profits of production: which would not be
termittant in its uses and effects, but bene-
ial in its steady and uniform supply sup
y which would not be withdrawn from the 4
'era,ions Of industry when most needed, =,
1t would be applied to its wants so long as
was safe b.
The frequency Of panics and revulsions in
e money market would be greatly dmin-
led, and their pressure would be far less
'astrous than it now proves to be. Credit,
e grand motive power of human production,
'uld be regulated and distributed by its nat
al value, and its easy and even flow dis
rbed by no artificial panic occasioned by
wise legislation.
The above synopsis embraces the substance 4
Mr.. Hunters very able letter, which may !
found in ertenso in the New York Herald of 7
g Stn instant.
Mt you see it,