The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1876-08-07
Against these $3.50 900, 900


ted States worth in gold about $360,000,-
900 available and current in all foreign
money markets.
In reeuming, the banks, even If 1t were
possible for all their notes to be presented
for payment would have $500, 900, 900 OF
specie funds to pay $3.50 ,000,0 900 of notes, |
without contracting their loans to their Gus |
toners or calling on any private debtor for |
payment. Suspended banks undertaking |
to resume have usually been Obliged to col |
lect from needy borrowers means to redeem
excessive Issues and to provide receivers.
A vague idea of distress is therefore often
associated with the process Of resumption,
but the conditions which caused distress in
those former instances do not now exist
The government has only to make good its
own promises and the banks can take care
of themselves without distressing anybody.
The government is, therefore, the sole de-
lnquent.
the amount of the legal tender notes of
the United States now outstanding is less
than S370 600, 900, besides S34 600. 900 of
fractional currency. How shall the gov
ernment make these notes at all times rs
good az specep 1t has to provide, in ref
ercnce to the mass which would be kept in
use by the wants of business. a central res
ervoir of coin adequate to the adjustment
OF temporary fluctuations of international
balances, and rs guaranty against tran
sicnt drains artiflcially created by panic or
by speculation. 1t has also to provide for
the payment in coin of such fractional cur
rency as msy be presented Tor redemption,
and such uncomfortable portions of legal
tenders as individuals may from time to
time desire to convert for special use, or in
order to lay by in coin their little stores of
money.
To make the coin now in the treasury
available for the objects OF this reserve to
gradually strengthen and enlarge that re-
serve and to provide for such other excep-
lonal demands for coin as may arise does
not seem 10 me a work of difficulty. III
wisely planned and discreetly pursued, it
ought not to cost any sacrifice to the bust
ness of the country; il should tend, on the
contrary, to the revival of hope and conf-
dence. The coin in the treasury on the
30h of June, including what is held against
coin certificates, amounted to nearly seven
ty-four millions. The current of precious
| metals which has flowed out of our country
| tor eleven years, from 1875, to June 80.
| 1876 averaging nearly sevehty-six millions
u year, was 1872 millions in the whole peri
| cd, of which GIT millions were the product
OF our own mines. To amass the requisite
| quantity by intercep,ing from the current
| flowing out of the country and by acquir-
| ing from stocks which exist abroad without
disturbing the equilibrium of foreign
| money markets is q result to be easily
worked out by practical knowledge and
judgment, With respect to whatever sur
plus of legal tenders the wants of business
may fail to keep in use, and which, 10 or
der to save interest, will be retained for
redemption, they Can either be paid or
they can be funded. Whether they con-
inue as currency or be absorbed into
vast mass OF securities held as investments
Is merely question of the rate of interest
hey draw. Even if they were to re-
main in their present form and the govern
ment were to agree to pay on them a rate
NJ interest making them desirable as in
vestments, they would cease to circulate and
cake their place with government, state,
municipal and other corporate and private
loans OF which thousands of millions exist
among US. In the perfect ease with which
they can be changed from currency into in
vestments lies the only danger to be guard
ed against in the adoption of general
measures intended to remove clearly as
certained surplus that is, the withdrawal
| OF any which are not IN permanent excess
beyond the wants of business. Even more
mischlevous would be any measure which
fleets public imagination with the fear of
tpprehended scarcity. In a community
where credit is so much used, fluctuations
+ values and viscssitudes in business are
argely caused by temporary beliefs of mer
ven Def re those beliefs can conform tc
iscertained realities. The amount of ne.
cessary currency at given time can not be
determined arbitrarily, and should MOI
ne assumed on conjecture thai
amount is subject to bott
permanent and temporary changes
An enlargement of it which seemed to be
civil war, by the substituted use of curren
cy in place of individual credits. 1t varies
With certain states of business; it fluctu
ites with considerable regularity at differ
ent seasons of the year. Ii autumn, TO
Instance. when buyers of grain and othe
agricultural products begin their operation
hey usually need to borrow capital or cir
culating credits by which to make thei
purchases and want these funds 10 curren
cy capable of being distributed IN small
,ums among numerous sellers. The add
ional need of currency at such times i
, live or more per cent of the whole volume
and if surplus beyond what is require
for ordinary use does not happen to hav
, been on hand at the money counter, a scar
city of currency ensues and also q stringen
, cy in the loan market.
1t was in reference to such experience
that, in a discussion of this subject in m
I annual message to the New York legisla
0 lure of January 8, 1875, the suggestion wa
made that 1.-THE federal government
bound to redeem every portion of its issue
which the public do not wish to use.
Having assumed to monopolize the suppl
t the currency and enacted exclusion
igaiast everybody else, it ia bound to fur
, nish all which the wants Of business II
] quire." The system should psssivel
y allow the volume OF circulating credits I
LIB aud flow according to the changin
wants of business. 1t should initiate Q
closely as possible the natural laws {
trade which it has superseded by artifici
y, contrivances. In similar discussion
my message of January 4, 1876, it was sal
hat resumption should be effected by sue
measures as would keep the aggregaI
= amount of currency self adjusting durin
! all the process without creating at any tin
= IN artificial scarcity, and without exctin
ne public imagination with alarms whiC
u impair confidence, contract the whole larl
l. machinery OF credit, and disturb the nat
al operations of business. Public eco
: mics, official retrenchments and vii
e nance are means which the st. Louis Co
: vention indicates as a provision for =
II erves and redemptions. The best resour,
a reduction OF expenses of the COVER
:, ment below It's income, for that imposes I
u new charge on the people. If, howevo
i he improvidence and waste which ha,
u conducted us to the period of falling rev
= cues oblige ns to supplement the results
economies and retreuchments by some r
sort to loans, we should not hesitate. ri
government ought not to speculate on !
own dishonor in order to save i
70 terest on it's broken promises, whlt
lt 1t still compels private dealers to a
,, iept al fictitious par. The highe
10 national honor is not only right, but won
prove profitable. OF the public debt 0S5
T. 600 bear interest at six per cent in go
aud 7l2 900 600 at five per cent in gold I'll
average interest Is 55 per cent. A fina