The New Orleans Democrat., 1876-08-06

49,
fneans 70 redeem excessive issues and provide
yags idsa o. distress I, Is before often
the conditions which caused distress N those
| former instances do not now exist. The Gov
| ind the banks can take care of themselves with
out dstreHsing anybody. The Government is
the sole dsiinduent
LEGAL TENDER RESUMPTION
The amount OF the legal tender notes Of the
United States now outstanding is less than 1910 v
ono 900 besides s5l 100000 of fractional currency
How shall the Go, ernment make those notes ut
all times as good as speciel II has " provide
In reference TO the mass which would be kept in
Use by the wants pf business. u central reser-
voir OF coin gdeaunte to the adjustment Of tho
temporary fluctuations Of International bal
anees and rs q guarantee against transient
drains artitleialiy created by pauies or by speeu
latiQn; 1t has also to provide for payment of
for u' redemption and such i ineonsderabjs cons por
tioDs OF the legnl tenders as individuals from
time TO time may desire to convert for special
use or In order to lay by Ia coin their little stores
Of money.
RESUMPTION NOT DIFFICULT.
To make coin in the Treasury available for
this reserve, to gradually strengthen and on
large that reserve. and to provide for such other
exceptional demands for coin as may arise, does
not seem to me TO be work OF difficulty II
wisely planned and disereetely pursued IL ought
not TO cost any saerifee to the business Of the
country II should tend on the contrary. IT, n re-
yival Of hope and confidence. The coin IN the
held against coin certificates. amounted to near
ly 81 oo0.0Oo The current Of precious metals
which has flowed out OF our country for eleven
years. from July !. 1865 to Juno So 1875. averag-
ing nearly Feo0o.60D n year, was ss32 700. 900 in
The whole period OF which 4 ssl7 900 900 were the
sie % quantities BY ntsreepting from fbe @ current
the stocks which exist abroad. without dis
turbng the equilibrium Of foreign money m,sr-
kete. Il result to be ensily marked out BY prae-
teal knowledge and Judgment, with Whist respect
9 whatsvsr sarpuS q legal tenders th9 ysh Tans
In order TO save interest, will bs returned for
redempti9n !, they can be either paid, or they can
or or be- absorbed into tbs vast mass OF securities
rate Of interest they draw: eeen Il they were to
ss n 'r p res psesen IT, or ana g
tsrest making tbefn desirable ~ iuvestnienta.
they would cease to circulate and tako their
other corporate and private bonds. Of which
thousands OF milll2ps exist among us. In ths
from currency into Investments lies tho only
danRer n bo guarded against in the adoption of
general measures to remove n O early asce,r-
tainsd surplus. that 10. the Withdrawal Of any
ws,id % - sns nisssars xhcl, siistts ths public
imagination with fear OF an apprehended scar
city. in tho community where credit is 50 much
used fluctuations Of values snd vicissitudes In
business are largely caused by the tenn nporary
III
TO ascsftained realities. q FEIF7l w
AMOUNT or NECESSARY CURRENCY.
The amount OF tho necessary currency mt u
given. time cannot be determined arbitrarily,
and should not be- assumed upon conjecture;
that amount l. subject to both permanent and
temporary changes, an enlargement OF which
seemed 70 be durable. happened ut the begin
eurTscy T g Il % place u II varies s's wit
certain states OF business. II nuetuates with
considerable regularity at different seasons Of
Of grain and other agricultural products begin
their operations, they usually need TO borrow
CAPITAL or circulating credit by which TO make
reDcy capable OF being distributed In small
sums among numerous sellers. Tho additional
need Of currency Of such times is flye or more
beyond what Ia required for ordinary use does
not happen to have been on hand at the money
atrineeney In tbe loan markct II Is n I refer io
ence to such experiences that in n discussion Of
this. subject IN my annual message TO the New
suggestion was was made that the Federal l
Government II bound TO redeem every
portion of its issues which tho public do not
suppJy Of currency and enacted exclusions
against eyerybody else. II II bound :? furnish
~ which the wants q 81, tnsinSss ~ require. The
cuIatipg credits to ebb aud flow according to the
wants Of business; should imi.
sScS i Dsssss srs o.
triyAnese: and In asiniilar disetission In my mos
sage ot Jen,isry :. isns. Il Vas aan thu rssam ,.
would keep, tho searsgato amount of the eur.
reHcy fself-adjusting duringp oil tho process.
without eresjng at any time iprtf csl scarcity
With alarms. which impair Confidence oontrn,t
the whole large machinery Of credit and disturb
the national operstions OF business n
MEANS or RESUMPTION.
Public economics. official rstrenchments and
wise llnance afs TN the means which the st. Louis
and rederpptions. The best resource In a reduce
ton OF the expenses. Of the Government below
Its income, for that imposes no new change on
tho people. II, however, Tho i'll. providence and
waste which have conducted us to q period of
falling revenues. oblge, us to supplement the
results Of economies and retrepchfUents by some
resort to loans. we should not hesitate The
Government ought not TO speculate on It's own
dshonor In order TO save interest on Its broken
promises which II still compels private dealers
70 accept at fictitious par the highest national
honor j. not only, right, but would prove profit
a. u as eapt cent ase se ossf It ye
per cent In gold the average interest Is 5.58 per
cont. A. financial policy which should secure
the highest credit wisely avaled OF, ought
gradually to obtain reduc ion Of one per cent
In the interest on most Of the loans. A saving |
of ono per cont on the average, would be seven
larly invested at four and q half per cent.
would In less than thirtga,eight, yoars, ex
tinguish tho principal, The, whole seven
paid by this saving alone without cost TO the |
people. Proper time Tor resumption is the time |
when wise preparations shall have rpened into |
a perfect ability TO accomplish the object with
certainty and case that will inspire confidence |
and encourage the reyiving OF business. The |
earliest time In which such u result con be |
brought about is the best. Even when the |
shall have been mntured, the exact |
date would have to be chosen with reference to |
the then existing state OF trade and credit opera
tions In our own country, the course Of foreign /
commerce. and the condition OF the exchanges /
with Other. nations. Tho specific measures and
the actual date are matters Of detail. having |
reference to ever changing conditions thoy be- |
long to the domain Of practical administrative |
The captain OF q steamer about |
starting from New York to Liverpool does not /
q council over his ocean chart and fix |
m anglo by which to lash the rudder for the |
whole voyage q human Intelligence must be ut
The helm to discern the shifting forces Of the |
waters and the winds; o human hand must be
On the helm 10 feel the elements day by day. and
guide TO a mastery over them llr
PREPARATION FoE RESUMPTION. i
Such preparations are everything; without
hem u Legislative command fixing q day an
lf1icial promise fixing day shows thoy are
gorse: they are q snare and delusiOn 10 all who
rust them: they destroy nll confidence among