The Highland weekly news. [volume] (Hillsborough [Hillsboro], Highland County, Ohio) 1853-1886, 1875-09-09
Does the Country Need
More Monev?

| IN Lne country TO transact the Dus1-
ness of the country, and that this is
the great cause of the "hard times"
of which everybody complains. They
further assert that this 5carcity OF
money has been caused by the Soon
traction of currency" by the Repub-
lican party, (though the fact is there
has been no contraction for the past
8 years. and that the true remedy is
to issue more greenbacksI",
To show that this scarcity of mon
ey is without foundation, we stated
the fact in the News of week before
last, that money was SO plenty in
New York city that it was being loan
ed on call at 2 per cent. per annum.
The Hillsboro Gazette thereupon
takes our article as a text for labor
ed article ofa column, in its last issue,
in which it attempts to show that
the very fact that the New York
banks have money to loan on call
at such cheap rates, proves that
there is not money enough in the
country at large for legitimate bust
ness purposes.
The argument by which the Ga
zette attempts to sustain its position
is briefly this: That the money
thus loaned by the New York banks
does not belong to them, but consists
chiefly of the cash reserves of the
National Banks of the interior, de-
posted in New York under the pro-
visions of the banking law, which
permits country banks to deposit IA
per cent. OF the cash reserves in the
redemption cities, instead of keeping
the money in their own vaults. That
the transfer of these reserves from
the country banks to New York Gre
ates scarcity of money in the coun-
try and superabundance in Now
York, and therefore, while money is
plenty there at low rates of interest,
it is scarce in the country, and the
rates of interest are high. The Ga
zette concludes by saying:
$50 that in reviewing the whole
ground by which call loans are en-
abled to be made in New York city,
to-day at two per cent, instead Of
that fact being q blessing to the coun-
try, the evils that flow from the caus-
es that lead to that state of affairs,
are yet to be realized, no doubt In
this falls business. Even now mon
ey is Tightening in the country
banks"
Whether the fact that money is to
be had on call in New York at two
per cent. per annum is "a blessing to
the country" or not, is not the ques-
ton at issue between us and the
Gazette. We asserted that there
was no real scarcity of money in the
country, as the Gazette and other
Democratic papers and speakers in
Ohio are constantly claiming, and
we cited the fact of the cheapness
and abundance of money in New
York to sustain our position. The
Gazette admits the abundance of
money in New York, but says that
very fact proves o scarcity in the
country.
Will the Gazette please tell us
why it is that the country banks
send their money to the New York
banks, from which they receive but
low rate of interest, instead of keep
ing it at home and loaning it to their
at high rate of interests
Is it not because there is no demand
for the money at home, and rather
than let it lie idle and unproductive
in their vaults they prefer to send it
to New York, where they will realize
at least small INTEREST," If this is
the true explanation, does it not
show that instead of there being q
scarcity of money in the country
banks, the supply is really greater
than the demand
The Gazette knows as well as we
do, that there is no difficulty in OBJ
tanning money from our banks and
at the present time, if
the borrowers are able to give good
The rates of interest
charged by theanks are no higher
now than they have been for years
past, and from outside parties money
can be bad at sheaper rates than for
many years. This shows conclusive
ly that there is abundance of money
for all legitimate purposes in spite of
all the Gazette's learned twaddle
about "Call Loan foolishness, "mon-
opoly of the currency" by the "money
lords" Of the National Banks, &c.
No, Mr.. Gazette, what the country
needs is not "na0re money" but Bet
ter money; not q further issue Of
"greenbacks' when those we have
are at discount of II per cent, but
a gradual and STD appreciation of
of the "greenbatks already in circu-
lation until every dollar is worth its
face in gold or silver-the good old
solid, substantial money, which such
Democrats as Jackson, Benton, and
Van Buren used to advocate as the
only constitutional currency, but
which those modern Democrats, Sam
Cary and Goy/Allen, denounce as
s.borray, idaalHv