The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-11-05

fas 10 have becomes curse tns 90 country.
.psE0mfnatly. IN deed There III nearly as large
+ IN amount at national banif md greenback
currency IN scircuia, t0n as eyer, and, appa-
Eren!ly there has been mo gseat contraction,
hut la fact much OF the currency has been
locked mp by bankers and speculatora and
not allowed foremsin 10 circulation. have
seen ~ stated that ia New York city alone
one hundred and forty millionsof the cur.
rency has been thus locked up. How much
more is held id Boston, Phfladelphia, and
other. money centres IL Is not for me to say,
and the public are not allowed TO KNOW.
The process said TO be adopted isvery aim.
pie if It has: been correctly described. a
wealthy speculator has hundred thousand
dollars on deposit 10 New York bank. de
checks for IL, and has the money sealed up
when 1t is paid him ;and on this sealed pack
age OF currency as collateral he borroWs
ninety or q. hundred thousand dollars more
| at three OF. four per cent. per annum. He
cheeks out the ninety thousand newly DOT.
rowed, and when that is paid to him, seals 81 It
up and borrows more money on the new COLI
Lateral. And this process be repeats as lar
as the bank will aiio " II to be done.
Thisis what is reported ofJtne means OF
forcing contraction adopted in New York |;
and 1t Is also told that the contractionisss oe'
clare their intention to carry on TINS policy
Of contraction until the real estate ofthe
CITY and country is brought down fifty per
bcent. la, value, Real estate has longago supK
below that point interpretation Ia the coun;;
try. This sort of contractio ana every
other sort, zig paralysis to the enterprise ana
eonfiscation to the property 0f.ltne country:
eBy these and other means familiar TO wan
street 1.-The volume CT currency 10 clrculla.
ton, instead of being some seven huaareq
millions of dollars, as indicated by ot1csl
reports. is probably below hye hundred mil
lions: And the country owes this condltllon
of things, chiefly to, and has been thus vic
timized chiefly by New: York city-aa city
in whose growth and wealth, ymagnihcence
and opnienee, 1t has always felt an ,exultant
pride. - 5os1Za -ls.rL
scarcity of currency is so great that the PEG:
pie are already reduced to state OF barter.
There are no means of making purchase
except by establishing credits in banks and
giving checks instead of moaey. The inte-
rior banks are thus tempted to extoSt heavy
usury, and many Of them are declaring
twenty to fifty per cent. dividends to their
stockholders. :" 1.sa :1 .t.e .rl,
The effect of this condition of things upon
our colored population Is deplorable. AS a
class they are without credit, and their well
fare depends upon receiving their dues 10
money. When these. have to De made the
subject of running and standing accounts
the condition ofathis class OF laborers be-
comes peculiarly unfortunate. TIE emancl.
patton of this FIVE millions Of population, all
requiring ready money in their dealings,
strongly forbade any undue contraction OF
the currency ~. 49,.
The result of the contraction which has
been inflicted upon the country is the eXor-
bitant rates Of interest everywhere exacted !;
rates which no business can bear, and which
paraly re every. species Of enterprise; the et-
Fleet of which, especially upon the South, Is
the depreciation our real estate to values
as pitiabIe as they are absolutely ruinous to
its owners. Wars are always followed by
depreciation in real estate, because they ere.
ale hesvy taxes, and also because they cause
the, issuing of public. bonds, which are q
more remuneratiVe aud desirable investment
of capital than: iands.! Besides the effect OF
this cause upon iour lands we have That OF
the usHrious interest charged by the BANKS;
for Whenever the rate Of interest is greater
than six or eight per cent. real estate, which
Is deprecated throughout the agricultural
districts, riit ~ I'D Eg'".l, =
Industry ought to be encouraged by lower
rates of isterestI than the people, are now
made to pay, and by a4larger circulation, Of
currencythau we actually have. This cur
rency should be issued on currency rather
than on irflfioD principles, and the policy Of
contraction for the purpose of deprecia'ing
property and eX,orting hlgn rates Of interest
ought tofbe broken up and corrected. My
own view has long been. that the proper
measures for regulating the rates Of .in-
terest and securing apar value to the
currency could be taken, and persistently,
consistently, aud intellgently executed,
best Of all by commanding banking insti.
tuition, such as the banks of England, france,
Russia, Amsterdam, and Austria. This
great subject of currency, however, Is too
suggestive of refiection,to be fully discussed
in q paper like this. And having covered in
a general way the grounds of your inquiry,
L beg leave to subscribe myself, very sin
cereiy your friend and ohedient servant, 80,
- .iIf .aaGs az e ROBERT w. ;HCGHEs.
William p. Moore, Esq, and Dr.. 4 ". ".
81 iWinol lSuffOIk Va. r-fA. a 81 - .