Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1876-08-10

per cent. OF Iue aluouio, wv 'HNJ
had on deposit in the Federal Treasury as
security for these notes, bonds Of the UNI
ted States worth in gold about $30O,O0c,-
BOO available and current in all the Tor
eien money markets. In resuming the
banks, even if it were possible for all Their
notes to be presented for payment, would
have five hundred millions OF specie funds
to nav two hundred and eighty millions
of notes. without contracting their loans
to their customers or calling on any prl-
vate debtor for payment. Suspended banks
undertaking to resume have usually been
obliged 10 collect from needy borrowers
the means to redeem excessive issues ana
provide reserves. A vague idea OF DIS
ttress is therefore often associated with the
process of redemption, but the conditions
which caused distress in these former IN.
stances do not now exist. The Govern
ment has only to make good its promises
and the banks can take care OF themselves
without distressing anybody. The Gov
ernnent is therefore the sole delinquent.
LEGAL TENDER RESUMPTION.
The amount of the legal tender notes
of the United States now outstanding, IS
less than $37, 100000, besides $34, 1000
Of fractional currency. How shall the
Government make these notes at all tunes
as good as specie? 1t has to provide IN
reference to the mass, which would be
kept in use by the wants of business. A
central reservoir of coin, adequate to the
adjustment of the temporary fluctuations
Of international balances and as a guar
antv against transient drains artifcially
created by panic CT by speculation. 1t
has also to provide for the payment OF
such currency as may be presented for re-
demption and such inconsiderable portions
of the legal tenders as individuals, from
time to time, as they may desire to con-
vert for special use, or in order to lay by,
in coin, their little stores Of money. Re-
sumption is not difficult. To make the
coin in the Treasury available for this re-
serve, to gradually strengthen and enlarge
that reserve, to provide for such other ex
ceptionable demands for coin as may arise,
does not seem to me to be work OF diff
cultv. If wisely planned and discreetly
pursued, it ought not to cost any sacrifice
to the business of the country. 1t should
tend on the contrary to q revival OF hope
and confidence. oo.,
The coin in the Treasury on the Both
of June, including what ls held against
coin certificates, amounted to nearly seven
,n;ll;ons The current of precious metals
which has flowed out Of our country ior
eleven years, from July lst, 1865, to June
80, 1876, averaging nearly SIC, 6,O0O,0OO a
wear, was 1892 100000, in the whole pc
Rod Of which $6l7 100000 were the pro-
duct of our own mines, to amaeS the re-
quisite quantities by intercepting from
the current flowing out Of the country
and by acquiring from the stocks which
exist abroad without disturbing the equl-
libnum OF foreign money markets is Q
result to be easily marked out by practl
cal knowledge and judgment. with what
respect to whatever surplus of legal ten
ders the wants of business may fail tc
keep in use, and which, in order to save
interest will be returned for redemption
they can be either paid or they can bt
funded. Whether they continue as cur
rency or be absorbed into the vast mas:
of securities held as investments, j:
merely question of the rate Of interes
! they draw. Even if they were to re
main ia their present form and the gov
ernment wege'to agrse to pay on them
rate of interest making them desirable
as investments, they would cease to cir
culate and take their place with Govern
| mept, State, municipal and other cor
| porate and private bonds, Of which thou
sands of millions exist among US. II
| Che Derfeet case With which they can b.
Changed froli currency into ipyestp ept.
| lies the only danger TO be guarded agalps
in the adoption of general measures tt
remove a clearly ascertained surplus
that is the withdrawal of any which arr
not permanent excess beyond the want
of business. Even more mischleyou
would be any measure which effects tn
public imagination, with the fear OF al
apprehended scarcity in a comnunit.
where credit is so much used, ftuctuatlol
OF values and vicisitudes in business ar
largely caused by the temporary belle
of men even before those beliefs conform
70 ascertained realities.
AMOUNT Of l;?y NECESSARY CURRENCY.
Tbs aRoaat Of Ppescesssary P sYaiy eS currency IF at
given time cannot ne deterlHinsdd $RFFoftra
rily and should not be assumed upon ta
conjecture thai the amount is subject +
both permanent and temporary change
and the enlargement of which seemed t
be durable, happened at the beginning
of the civil war by substituted use o
currei,ev in the place of individual credits
II varies will viii. ccaertain states Of business
I taEqtqIaseyy with With considerable r'salart!
at" dlHsrs3st Siffs4ay fsH::s at thf ytAYt ~ ~ ~
tumn, tor instance, when buyers 9f graiE
apd other agricultural products BEGIN Il
borrow capital or circulating credits by
which to make these purchases, and want
these funds in currency capable of being
distributed in small sums among numer.
ous sellers. The additional Of currency
at which times is five or more per cent. O
The whole volume, andif surplus beyond
| What ls procured for ordinary uses, does
not hqpBeH to haVe' besH ag'hRhd et the
money centres, Q scarcity Of Currency en,
sues, and also 9 stringency in the Joan
market. 1t is in reference to such ex.
peRses that in discussion of this subject
| ii my annual message to the New York
'-'"tnrc Of January s, 1875, the sug-
Legls... That the Federal Gov
cestion was MAJ "uarv portion
o1 :: Ll to roJoa,,o :-L
of its issues which the public do not WIS
to use, having assumed to monopollze the
supply of currency and enacted. exclusions
against everybody else, it is bound to fur
nish all which the wants OF business re-
quire. ~ ~.
volume of circulating credits to ebb and
flow according to the everchanging wants
of business; It should emulate as closely
as possible the natural laws OF trade
which it has superseded by artificial con-
trivances, and in similar discussion II
nv message of January 4, 1876, it was
said that resumption should be effected by
such means as would keep the aggregate
amount of the currency sclf-adjustine
during all the process without creating at
any time an artificial scarcity, and without
exciting the public Imagination with
alarms which impair confidence, contract
the whole large machinery Of credit and
disturb the natural operations OF business
Means of resumption, public economies
official retrenchment and wise finance are
the means which the st. Louis G Convention
indicates as provision for reserves and re-
demptions. The best resources is a reduc-
r ~ ....z II 4Lo Go,,o.a,, ~, 4