Richland beacon. [volume] (Rayville, La.) 1869-1890, 1876-08-12

Ter Whatever thcir luTIncr condition wa-. IN
every political and personal right.
Reform is necessary. declares the - Lni-
Convention, To establish a sound CURRENCY
, restore the public credit, and maintain the
National honor and il GOES To- demand -
JHIcl"n> system Oi preparation by TuhIn.
ccor!nnIicS. by official rrirrnchmcuf. and by
wi-e finance, whiCn shall enable the Nnriun
soon To assure the Whole world uf IT, perfect
ability and lis perfect readiness TO meet any
Of Its promises al the call of the creditor
entitled tu payment. The ohl.ct demanded
10y the Convention il a resumption vi specie
payments on the legal tender notes oi the
United States that would not only restore the
public credit and inain,ain the National
honor but il would establish a sound currency
for the people. The method 10y which this
object i TO he pursued and the means by
which 1t i 10 be attained demands in the
future, and by what It tlemnuiIccd in the past.
bank note resumption, resumption of specie
payments by lhe Government al the United
States on irs legal tender notes world e,rab
li>h specie payments by all the banks on all
their notes Official statements ON the 9Th
May show the amounts uf thu bank notes was
s;un,UuD, ,OnU less S2uu.mOyouO hell by them.
-
had 81 I | ,uOu,Ouu of legal tenders, or little
morc Than fifty per cent OF the amount. bu;
ilIry also had on deposit il the Federal
Treasury H> security for these notes. bonds nf
the United State, worth in gold about S}6b,
uoO.UUn available and current in all the
in.sIsn money markets. In rc>uning the
banks even II II were possible iur all their
notes TO he presented for payment, would
have S5uo.uuu,OUU at sprrr funds 10 pay
s2SuopO,OuO Of notes without contracting
their loans to their customers or calling un
any private debtor for payment. Suspended
banks undertaking To resume have usually
been obliged TO collect from needy borrowers
the means TO redeem excessive issues and
provide reserves. A yaguc idra of distress
/, before often associated with the process of
resumption, but the CoudIiiors which caused
distress IN these former Instances DO not Low
exist The Government has only 10 make
good its promises. The banks can take care
oi themselves without distressing auyboiy
The Government il thercfnre the sole delin-
quent The legal tender note, of the United
States now outstanding l. les, than S51u, ,OUD,-
600, besides S%i,UOO.Oun Of fractional cur
rencv. How shall the Guycrnrnent make
these notes at all times as good as specie
IL has to provide in reference Ia Tie mass.
which would bc kept in Use 10y the wants ol
business. a central reservoir uf coin.
adequate to the adjustment of tho temporary
fluctuations Of internal balances, and n. a
guaranty against transient drains. ar,iiicialIy
created. by panics or by spcculat on. IL ha,
also Ia provide for payment Of such fractional
currency rs may he represented for redernp
a Ia ,,y,
legal tenders as individuals from time to time
may desire to convert for special Use, or ia
order To lay by in cuin their li,le stores Of
money. Resumption l. not difficult 10 make.
The coin in the Treasury available for this
reserve io gradually strengthen aud enlarge
that reserve, and TO provide Tor such other
Exceptional demands for coin as may arise
does not seem to me To Je work oi difficulty
II wisely planned ;lnG die. cety pursued, II
ought not 10 cost any sacrifice 10 the business
of ia, country. il should tend, on the con-
rrary 10 a revival of hope and confidence
The coin III the Treasury on the iO,li Of June.
including what is held against coin certificates
amounted TO S1,UUO.0uO. The cuIrrh ul
precious metals which has flowed ont OF our
country for eleven years, from July |, lS'ij,
To June 81, 1876, averaging nearly S1G.0no,
600 n year, was SS:;1 uuuOuO, III the whole
pcr.od Of which Sol 7.0nU,OuO were the pro-
duct of our mines. To anass the requisite
quantities. by in'errupiing from the curren,
fiowina out of the country. and 10y acquiring
from the stocks which exist abroad without
disturbing the equilibrium Of foreign money
narke's, is Il result 10 lie easily marked our
by practical knowledge anu Judgment with
what respect TO whatever surplus nf legal
tenders the wants of business may fiIl 10
Keep in u-e, ami which in order TO save
interest will be returned Tor redemption.
They can DC either paid or they can be
funded. Whether they continue as currency
or be absorbed into the vast mas OF securities
held aS investments is merely Il question of
the rate of interest they draw. Even if they
were 10 remain in their present form and the
Government were 10 agree 10 pay on them
Il T1te o! interest making them desirable a,
they would cease TO circulate
aud take their place with Government, State,
and other corporate bonds Of which
Of millions exist among us. The
perfect case with winch they can be changed
from currency into investments lies the "nly
danger to be guarded against. In the adon-
ton OF general measures to remove n clearly
surplus, tl.at Is, the withdrawal
ui any which are not a permanent excess
beyond the wants Of business, even more
mschicvous would be any measures which
effects the public imagination with fear of AN
scarcity, in the community
where credit is 30 much used fluctuations of
values and vici.situdes in business are largely
caused by the temporary beliefs of men even
before those beliefs coniormed TO ascerraine6
realities of the amount Of necessary currency
Tue amount necessary at any given time
cannot be determined arbitrarily, ard should
not he assumed upon con jcclure that the
amount is subject to both pernanen, and ,enl-
rorary changes, an enlargement of which
seemed To be desirable, happened AT the
beginning of the civil war by a substituted
Use If currency in place Of indvidua,. |,
varies with certain stages of business; il
luctuares with considerable regularity at
different SEASONS Of the year. In Autumn, for
instance, when buyers of grain and other
agricultural products begin their operations,
they usually need 10 borrow capital or circu-
la,ns credit, by which To make their pur-
clIases, and want these funds in currency,
capable OF being distributed in small sums
among numerous sellers. Tie addir,onal
need Of currency, at sucii times, is five or
more per cent of the whole volume and if a
surplus beyond what is required for ordinary
use, does not happen to have been on hand
AT the money centres, a scarcity Of currency
ensue<, and also stringency in the loan
market. 1t Is in reference TO such experiences
that in discussion of this subject, in my
annual message to the New York Legislature,
Of January 9Th, 1875. the suggestion was
made that the Federal Government is bound
to redeem every portion OF lis Issues, which
the public do moi wish to use Having
assumed to monopolise the supply OF currency,
and enacted exclusions against every body
else. ii is bound To furnish all which the
wants Of business require. The system:
should possibly allow the voln:pc el -iIcu-