The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-08-13

rate OF interestsfn manner more huriui
than any ever known before 10 the history OF
any finar,ce scheme. Contraction, too, has
forced the Government itself to put its ne
po,iations in the hands Of a syndicate OF 'ol-
ejvn bankers for raising loans WhereWitn 10
refund its bonds, and this has thereby mace
the ,pold.brokers masters OF the situstloh
both AZ home and abroad. With all this OPP
preston and wrong thus eDgendered Tue
only conoensatiug advantage which has re-
suited. if il can be called such. is that IL nas
eliminated in forcing the Administrator 70
throw off It's mask of hypocrisy, confess tna'
ils poIicy does not look to specie resump'
ton. and acknowledge openly that its pfac'
tees are the inspiration Of c'pltai seeklus
! self ACKNOWLEDGMENT, aud that II nas suiieD'
dered control of the finances.
A third question of serious import, anu
one which runs through the wnoie uiseos'
sion of our finances, Is that rela5'ng " ~.
sibIe resumption OF spe;le-pay pass ;u
| mon the old methods of requiring suie
reserve in the banks. Our experiences VI .na at
system were not so very f1itterihg III the p"3,
az to make the anticipation one OF uurlA s,,u
delight even if it were shown TO De pet'e..u;J
feasible, Moreover, the conditioh vi .h -
country 10 It's relation to foreign na.Ioun -
entirely changed from What lI was loi ueht
bv the creation Of our immense oonoeu ue ~.
Considering that so large part OF tuat ueuI
Is now held abroad, necessltatlng yearly
payment of about 800 OOO ,0o0 10 coln Una.
! local Indebtedness similarly helu, anu o.u ,I..
outpongs, will swell this amount 10 aui'y
SIsD, 600 600; that the annual product OF our
mines il scarcely $50, 900 900 in gold; that
the balance of trade is largely against
the limited States, it becomes evident that
oven were we to-day using coin extensively
"a a medium OF exchange it would be speed
;Iu withdrawn from US, and involve gene
raj bankruptcy. Nor does there seem to be
anv ADEQUATE provision in the national bank
scheme that could prevent such catastrophe.
| Recurring them to hold q coin reserve would
be nlscing them exactly in the position 10 oe
broken at will by any foreign nation winch,
| in order TO sustain vast armament, SDouiu
desre to withdraw gold from this country.
II was inst such i demand by the Bank VI
Enulaud for Il comparatively small amount
wbich closed the doors Of the Ohio Lille ana
Trust and produced the disasters OF 1891
| An effort to embarrass our nation by similar
withdrawal in 1861 would baVe had even still
more Frustrating influences but for the adop'
ton of the legal.tender currency, which
ayerted ruin aud carried us safely through
the war. Indeed, periodic money paDics are
and must be the rule with every such fiscal
establishment either here or abroad. Eng
land, with all its boosted coin wealth,
has been no exception, and Its sensitivencss
to any withdrawal Of coin as already cited
proves the insecurity OF that basis even III
it's OWE estimation. Whilst these facts seem
to be admitted on all sides, the bullIonlst>
Justify the system and demand return to 1t
| on the sole ground that we will be IN still
greater danger of disastrous fluctuations by
| reason Of inf ttioD, unless specle-payments
are used as a prudential control. Apart from
the consideration that specie never has mea-
suredthe business of any commercial people
since Venice first established bank, we
must bear in mind that lEtlatlon re-
poses more upon credits than upon
any relation of coin to value. This cur
rcncy is used to effect exchanges. LII
the largest centres of trade the least
is illustrated by the amount OF checks passed
in the London clearinghouse during the
wear 1873. which was S3O0OO,OOO, 900, or
nearly 500 0O0, 900 dav, and equally by the
operations Of TIE New York clearinghouse,
which, for the same period was S33 900, 000,-
600, or about 100000, 900 daily, and all ac-
compIished without the intervention Of coin
! or currency. In truth, as ba, been we'll re.
marked by 1lr. Baird in one OF his admirable
criticisms upon the conduct Of our Treasury
| Department, it is the 6dnk.chcck which Is
The great monetary instrument OF vIizltion.
He justly adds, too:
This instrument it is " hich to-day Is the
powerful lever that moves the business OF
tue word, and the uolume Of 'rhich. created
in any period of forty eight hours Of bust
ness acticty. in almost any great trading
community or count .-is equaL 10 the entire
amount Of mites and $pecie an circulation
IN such community or C0untry.'
| What is such 4" creation but irfii'ion on
| the urandest scale-au Initiation that trunspirtd
couIlly in England with its specie basis, as
| ia the United States under the national bank
ing SYSTEM And can it be seriously con-
tended that the iril.liOn which might arise
under free system by demand OF the n9fl-
cultural communities where currency does
| circulate. tor more money to move their
crops, could parallel 10 tie remotest such
daily creation Of medium of exchange. The
lesson which this should teach inancIers Is
rather the reverse of the argument OF the
| buI!!onistS. Ii is that Instead OF proposing
cold basis in The sense in which they Use
that term as any remedy against the evils
| attributed to iBt1lti0n. they should rely rath-
| or upon strengthening and distributing more
widely the smaller credits OF The interior,
| where currency really effects delivery. Tue
theory which looks TO Il large centrailZltlon
of coin in the hands Of Il vast bank monopo-
Is, with absolute limitation upon the issue
of currency, as u relief from present distress
- E,,ft oil
merely the same in principle with that
| which can see safe RECONSTRUCTION OF
other sorts only possible under The en-
larged, irresponsible rule OF executive
power, enforced by rigid military su-
pervi>iop. Tie coun,eryailiUg position
rs to both is that prosperity VIII rtappear
| by restoring local communities 10 healthlul
,elf.control, and by giving them freedom in
| their financial as we'll Us their political de.
yelopmeut The public thought, after
| weary agitation, has finally settled down to
the conclusion that true wisdom repudiates
return TO the method Of political repression
| Is fraugnt with every danger and yielding
no peace; and it is safe TO predict that full
and fair discussion of all the problems con-
nected with this financial controversy will
| reach a like conclusion in behalf OF Tree,
elastic currency, regulated solely py the
wants Of business, determined in its use by
reception for debts, taxes, customs, assured
US to its value by convertibllly into an inter-
est-beariug bond of an average rate, and re-
posing upon the credit Of the Government
as representing the whole wealth of the coun.
trv. When this stall be attained gold will
remain with us-wll accumulate as our
bonded debt is gradually reduced or re.
turned homeland its premium will substan.
TALLY disappear as it did in the case of the
demand notes. When that period arrives the
TreasurS.Department may, if it chooses, pay