Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1875-09-10

In addition to the increase shown it should
be stated that the change in the law in regard
to bank reserves has added to the volume o.
active currency In 1863 the banks were re-
quired to keep 25 per cent. of their circulation
locked up in their vaults. That amounted in
1865 to $40, 100000 In subsequent years Il
amounted to more as the characterization in
creased. On the lst of January, 1875, the re-
serve was $87, 100000 Now the banks are not
required to hold any reserve on account Of cir
culaIion. Thus nearly IS millions have been
virtually let loose and if we add this to the e1-
cess shown above, we have the following eOm-
parison: a
Total circulation in ls65........s62s, ,692, 900
Deduct erye-.....-.:..--- 4ZHoU'OV0 o- o,o -.
Actual available circulation. $685. SO, 600
Total circulation in ls75..-.... 764' 'gCS 81:
Actual available circulation. $50, ,4Os, SIT
Increase equivalent tO...... S266. 1866 8I7
It's true per cent. certificates were issued
at one time, and banks were allowed to count
th EN- in their reserve, but gold certificates are
now counted in the same way. Leaving out the
interest-bearing evidences of debt, which were
never a legal tender, and they could not be
called currency at any time no more than they
are to-day we find a large actual in
crease in the currency. With all the
talk about contraction, tine Republican party has
been guilty of imitation. Even in the resump-
ton act OF last winter lQUdLlcu Is DIONlucu luz
Banking was made free to all, and 1t was pro-
Vided that for every 800 of bank notes issued
only $50 of greenbacks should be Withdrawn,
and that in no event should the latter be con-
tracted below 300 millions Now, if the country
needs currency, as Cary says, and as Pendleton
insists there is no law TO prevent 1t, but very
plain law TO permit it. Suppose people holding
bonds should deposit them with the Secretary Oh
the Treasury and get 300 millions OF circulation,
what would be the result2 The Secretary could
not withdraw over "a millions Of greenbackA
That would leave us $50 millions of bank notes,
300 millions greenbacks and 40 millions Irae-
tional currency-995 millions altogether. Now
if currency is scarce, as alleged, aud nauona
banking is such good thing, as the Democrats
say it is why is it that the currency is rot forth
coming?
2. There is not enough money 70 meet the
wants of trade, we are told. This is a wild as
sertion, destitute of the shade of a shadow OK
foundation in fact. Every fact that can 0e
duoted proves tine reverse. We have already
shown that II currency was needed there IS an
easy way to supply it TO. the extent OF tne
bonded debt and if it were needed It would oe
profitable to supply the want. Tue lacI tuAt
National Banks are voluntarily contracting
their currency is proof enough that the issue OK
naner money is overdone, like good many
ntber branches of business. Let the demand Tor
currency increase, and the supply will grow iasi
enough.
q The Democratic speakers seek to create tho
impression that the adoption of the Ohio
Democratic policy would initiate the currency.
This we call the great delusion. There are men
simple enough TO believe it. Adventures who
have specuaIed until they aret on the verge OF
bankruptcy grab at this idea as q drowning
man would catch at a straw, and with about the
same desperation aud as little reason. II Allen,
as the old gentleman calls it, or the Democratic
ticket, as Thurman states it, should carry OHIO
by 100000, that would not add one dollar
to the currency. Congress alone could
do that but Congress wouldn't. Tho
present House is largely Democratic, but
il would not pass bill to innate tns
currency. II will not even elect an inhationiss
as Sneaker. But even il the House should in
Gate tbe Senate would defeat the measure.
Rnt eyen # the Senate aud House should both
vote initiation, the President would veto the bill.
So that there could be no practical imitation
with Grant 10 the White House, aud be will
s,av there until the 4th OF March, 1871 lnta-
tion is, therefore, out Of the question, except
in the way already provided by law, and that
way is wide open to any body who can put M
bonds. This is perfectly plain. There never
was more idle capital in the United States than
at this time, ana as banking is free, and, as
Democrats say, It is very profitable, the currency
would he rapidly and largely inflated il there
was a demand for even the currency already
available for circulation. But there is not,