New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-06
ate them. To "otherwise dispose Of them amounts
TO practical abandonment. ..H l-...f..l.Ia.

ate them. To "otherwiso dispose Of" them amounts
to o practical abandonment ... l-..f..1.Ia. /
| I.l I'D ..I USE AS FEEDERS.
| Even to deal with them thus involves many i'm
portant questions of business character those
portions of them which descend toward the Erie
Canal act as feeders to supply water to that canal
The supply cannot be safely diminished. and
might be judiciously increased The improve
ment of the waterway contemplated will call
! for more water. The consideration Of what
| must be done to retain as feeders portions OF
these canals not hereafter to be maintained by the
State for navigation, or what other provision for
supply Of water shall be substituted, is Important
To make che change contemplated by the amend
ment, with rs little harm possible to private In
forests and to consider aud provide for cases OF pos
when falling into disuse, needs careful study the
facts of the situation 1t Is also TO be ascertaned
what portion, II any, of tie property OF the state
connected with these works can be wisely sold.
SPECIAL COMMISSION RECOMMENDED.
The best suggestion which occurs to mo on this
subject is to impose the duty of considering and re-
porting on these questions upon special commission
consisting of four persons In the mean time no
expenditures should be made upon those WORKS
which are not strictly necessary III Wow u hoii
probable future.
THE INTEREST OF NEw-Y0RK IN THE FINANCIAL
POLICY OF THE UNITED STATES.
Tho State of New-YOrk receives nearly seven
tenths of all the Imports and sends abroad nearly
half of all the exports Of the whole United States
In its commercial metropolis. much larger share OF
our dealings with foreign nations in securities and
money is transacted, and, as at common mart the
exchanges are largely made between the people OF
the United States in domestic manufactures ana
products, and in public and corporate securities and
stocks. More than One-half OF the revenues OF the
Federal Government are collected within its borders
,f oil Ea6a
upon its citizens.
Since the Federal Government has assumed to pro-
vide currency for the whole country. directly by
the issue of its own notes, or indirectly by bank
notes. which are secured upon bonds OF the united
States and in of default by the lssuer are 70
be paid before resortng to the securities. by the
United States since it has incidentally absorbed
the regulation of the business OF banking; SINCE IL
has largely increased its taxation. ana imposes Sa'
taxation forms which affect the courses OF INDUS
try and the application OF capltal ana laDor,
impossible to exclude these vast operations, ana the
administrative policy and the legislation cohbecteu
State,' which it is the constitutional duty OF the
Governor to communicate with snch recommenda-
tioDs as he shall judge eYpedlent 10 inc Legis-
| latuTe at every session.
CAN MORE CURRENCY REVIVE PROSPERITY
The illusion is too common that an additional
issue of currency in legal tenders or bank notes.
would alleviate the distress now felt In business
cause general rise of prices, and revive seeming.
| il not real prosperity Thus many are tempted to
desire or to acauesce in demand upon the Federal
Government to put ont new promises to pay while
it is vet in a long-cOntinued default as to those
heretofore made and to do so after ten years OF
peace while having better for its present
default than lack Of skill in applying its abundant
resources to the restoration of the public faith
The hope of benefits TO any class from such an nm
sound policy, would prove to be completely iaila-
cious. 1t would prol0ng and intensity the evils
sought to be aeyiated This conclusion is clear
upon principle. and in our own experience. In order
distinctly to its truth, 1t Is only necessary 10
analyze that function i'll the business OF society
which is performed by tue cTCulatory credits known
| as currency.
CURRENCY BUT A PART OF CIRCULATING CREDITS.
To economic the use of metallic money which
had become the common instrument of exchange,
personal credit. in the form of book accounts, was
introduced. For example, the farmer delivered to
the country merchant his grain when ready for the
market and the merchant delivered his goods at the
times when they were wanted by the farmer for
consumption; each delivery was entered in a run
ming account, until a balance was struck and even
then the settlement generally took place without
the Intervention of money, which neither party had
the capital to own for each transaction. or to pay
the ultimate balance. Next came the note OF hand.
and when the transaction was between parties
doing business at different places drafts and bills OF
exchange. At last the most refined tool of commerce
coin on demand to bearer. in an even ana con
venient amount, engraved and authenticatedIwhe
issued by an institution or individual OF established
general credit-was voluntarily accepted by every
body in place of coin. it Is the currency used IN
payment by those who do not keep bank accounts
and. in petty transactions by those who DO Keep
bank accounts credit inscribed on the books OF
the bank, known i'll the language of commerce as a
deposit, and transferred By check, is the preferred
medium of payment. in all save petty TRANSACTIONS;
by those who keep bank accounts. It is preferred
because a check may represent large and uneven
amount which i'll notes would be announcement IN
the counting, handling and custody; and o check
nayabe TO order is safer and is itself an evidence of
the payment In dense communities where the
bank is near the customers checks are mostly used
In sparse communities, where the bank Is remote
from the dealers and holders Dank notes are mostly
used
These two tools of trade and mediums of payment
are their general functions, perfectly Identical
BANK NOTES AND CHECKS THE SANE IN EFFECT
AND NATURE
Their real nature is, that they provision for
expected payments and reserve for possible pay
ments On deposits, the holder submits to partial
or total loss of Interest for some banks allow in
terest at low rates, deposits on bank notes. the
holder submits to total loss of interest. To each
holder the motive is present to reduce bis
interest bearing reserve TO the lowest necessary
amount, by investing 1t, II IT be his own, or by re-
turning il, If it be borrowed.
THEIR AMOUNT VARIED BY PEOPLES WANTS, ~
PAYABLE IN COIN.
IL the currency be redeemabe, the wants of the
community. and not the wishes of the banks will
determine the amount which will remain outstand-
ing All that Government ought to do towards fix
ing that amount, is to provide methods to enforce
payment by the issues of such notes as the holders
not wishing to return to the sSuers for redemp-
ACKNOWLEDGEMENTS WITH THE TIMES.
1t is true that, in times Of speculation the cur
rency increases. Transactions become more numer-