Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1876-08-19

W AANNNAA W A0o&SAG
sues and to provide reserves. A
vague idea Of distress is, therefore,
often associated with the process
of resumption. But the conditions
which caused distress in those for
mer instances do not now exist.
The Government has only to
make good its own promises, and
the banks can take care of them
selves without distressing any
body. The Government is, there
fore, the sole delinquent.
LEGAL TENDER RESUMPTION.
The amount of the legal tender
notes of the United States now
outstanding is less than $40 millions
of dollars, besides "a millions of
dollars of fractional currency.
How shall the Government make
these notes at all times as good as
specie?
1t has to provide, in reference to
the mass which wonld be kept in
use by the wants of business, "a GEN.
trail reservoir Of coin, adequate to
the adjustment of the temporary
fluctuations Of international bal
ances, and as a guarantee against
transient drains artificially crea-
ted by panic or by speculation.
1t has to provide for the pay
ment in coin of such fractional
currency as may be presented for
resumption, and such inconsidera-
BILE portions of the 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.
RESUMPTION NOT DIFFICULT.
To make the money in the Treas
ury available for the objects of
this reserve.to gradually strength
en- and enlarge that reserve, and
to provide for such other excep.
tional demands for the coin as
may arise, does not seem TO me a
work ofdifficulty. If wisely plan
ned and directly pursued, it ought
not to cost any sacrifice to the bus
mess of the country. 1t should
tend, on the contrary, to a revival
of hope and confidence. The coin
in the Treasury on the Both of
June, including what is held
against coin certificate, amounted
to nearly AZ millions, The current
of previous metals which has flow
ed out of our country for the elev-
en- years from July 1, 1866, to June
80, 1876, averaging nearly rs mil
lions a year, was S32 millions in
the whole period, in which GIT
millions were the product of onr
own mines.
To amass the requisite quantity
by intercepting from the current
flowing out of the country, and by
acquiring from the stocks which
exist abroad without disturbing
the equilibrium of foreign money
markets, isa result to be easily
worked out by practical knowl-
edge and judgements.
With respect to whatever sur
plus of legal tenders the wants of
business may fail to keep in use.
and which, in order to save inter-
est, will be returned for resump-
ton, the can either be paid or they
can be funded. Whether they con-
tinue as currency, or be absorbed
Into the vast mass of securities
held as investments. is merely a
question of the rate ofinterest they
draw. Even if they were to re-
main in their present form, and
the Government were to agree to
pay on them a rate of interest,
making them desirable as invest
ments, they would cease to circu-
late and take their pace with
Government, State, municipal and
other corporate and private bonds
of which thousands of millions ex-
ist among us. In the perfect ease
with which they can be changed
from currency into investments
lies the only danger to be guarded
against in the adoption of general
measures intended to remove a
clearly ascertained surplus; that is
the withdrawal of any which are
nota permanent excess beyond
the wants of business. Even more
mischieveous would be any meas
ure which affects the public imag-
ination with the fear of an appre-
hended scarcity. In a community
where credit is so much used,
fluctuations of values and vicisi-
tudes in business are largely caus-
ed by the temporary beliefs of men
even before those beliefs can con-
form to ascertained realities.
AMOUNT OF Unnecessary CURRENCY
The amount of the necessary
currency, at a given time, cannot
be determined arbitrarily, and
should not be assumed on conjec-
ture. That amount is subject to
both permanent and temporary