The home journal. (Winchester, Tenn.) 1858-188?, 1876-08-17
OFFICIAL FINANCIAL STATEMENT.

OFFICIAL FINANCIAL STATEMENT.
Tho oiRrnl statement made on tho twc'Nh Of May
shows That the amount Oi bnNk iOcs was three hun
dred millions, less iWcnty mlllOns held by thCnl-
selves agnipH TIE two hundred and eighty millions
NJ n0'Coi The banks held one hundred and 0riy-Onc
MILLIONS OF legal tender notes, or a litl more than
MY por cent, Of their amount but they also hcld
on deposit In the federal treasury M security Tor
these notes bonds Of the United States worth, In
gold about three hundred and sixty millions, avail
able nhd current In all foreign money markets ~
rcSmug, the banks, oven II were possible lor all
heir notes To hr presented for payment would have
five hundred millions Of specie funds TO pay two
hundred and eighty millions OF notes without con-
raCtng their loans 10 their customers or calling on
Rny private debtor for payment. suspended banks,
unirrnkinu 10 resume have been obliged To collect
from needy borrowers means TO redeem excessive s
sues and to provide reserves A vague idea Of dis
trcS X, therefore, often associated with the process
Of resumption, hut the conditions which caused dis
lrCs- IN those former Instances do not now exist,
The government has only to m0kr good its promises,
aud the banks can take care Oi themselves without
distressing anyhOiy.
THE GOVERNMENT THE ONLY DELIN-
QuENT.
he government is, therefore, the sole delinquent,
The amount Of legal tender notes Of the United
States now outstanding is less than $50 OO0OOO, be-
sides S3i OOOOOO Of fractional currency. How shall
the government make these notes ut all times par
with reference 10 the mass which would he kept IN
use hy the wants Of business \ central reservoir
ul coin, adequate to the adjustment Of temporary
fluctuations o international balances, and ns guar
nnty against drains arilCiaIly created by panic or
speculation. II also has 10 provide iOr the payment
In coin Ol such fractional currency rs may he pre-
SCntcd for redemption, and such inCOnSdcrabr pOr
tiOus Of legal tenders ns individuals may from time
10 time desire to convert for special use or in order
TO lay by in in their little stores Of money.
COIN RESERVES.
So, make the coin now in the treasury available for
the objects Of this reserve To gradually strengthen
and enlarge that reserve, and TO provide Tor such
other exceptional demands for coin as may arise,
does moi seem To me u work Of difficulty. If wisely
planned and dsCrCctly pursued, II might not cost
any sacrifices 10 the business oi the country. II
should tent, on the contrary TO 4 revival Of hope
and confidence. The coin in the tire 'Sury on the
thirteenth of June, including what is held against
coin certificates amounted Ia y-iOur millions
The current Of precious metals which has flowed ont
Of country lOr the eleven years irOmJuly 1860,
to June 30, 1873 averaging nearly SCVcnty-slN NH
lions year. was eight hundred and tllrty-two mil
lions in the whole period ol which six hundred and
seventeen millions were he product O our own mines
To amaSS the requisite quantity by incrccptnr from
the current flowing out Of the country, aud from
stocks which exists abroad without disturbing H."
equilibrium Al the foreign money markets, sa result
o bo easily worked out by practical knowledge and
Judgment
SURPLUS OF LEGAL-TENpERS
with respect to whatever surplus of legal tenders
the wants Gf business may fail 10 keep in use and
which, in order 10 save the interest, will hc returned
for redemption they can either bc pnd or they can
he funded. Whether they mature ns currency or be
absorbed into the vast mass Ol securities hcl AS IN
ycStmCns, is merely question NJ the rate NJ inter
est they draw. Even If they were 10 remain in |
their present form and the government were Ia agree
10 pay on them rate OF interest making them de-
srahc Investments, they would cease to crculnl"
aud take their place with government state, munic-
ipnl and other TnTpOIgp and uTlyHlp demands u |
which thousands Of millions exist amongus In til" |
perfect ease with which they can he changed from |
currency into Investments, lies the only!angorio ho
guarded against in the adoption OF general measures
intended 10 remove clearly agCcriancd surplus |
that is, withdrawal oi any which are not pcrna-
ncnt excess hcyOnd the wants ol business, Even
more mschicvplIs would he any measure which AZ |
fccts puhc imagination with the fear Ol an apprc-
hcndrl scarcity. In community where credit Is |
much used, luCtuationSol values ad vlciSSllndc'
in business largely caused by temporary hcli"'
Oi mem even before those wllclS can CONFORM 10 us
ccrtaincd realities
NECESSARY CURRENCY.
The amount Of necessary currency nt u given time
cannot h" determined arbitrarily, and II th"Nld net
be- assumed on conjecture that III" amount shuh-
Irrtrl Ia both permanent and temporary changes.
An enlargement of it which seemed to lr dur9hl"
happened at the beginning Of tn" civil war 10y a
substituted usr If currency IN th" plac" # ndvl-
nal credits. II varies with certain states OF huti.
ness; il tuctuntcs with considerable regularity AZ
different seasons Of tn" yrar-iu autumn, for in
stance, " hen buyers Of grain ana other agrlrml-
tural products begin their operations they usually
need tu borrow capital or circulating" credits hv
which to make their purchases and want th"s"
funds in currency capable ut h'lng dls,nhnlrh ~
small 'ums among numerous sellers Ihc adIi-
iunal need of currency at such times Is ilNo per
cent, of the whole volume and II = surplus h"l"ud
what is required for ordinary us" does not happen
to he on hand at til" money C"nt"rs u scarcity ct
currency cnsucs aud alsoa strng"ncy in the loan
market
TIE WANTS OF BUSINESS.
II was In reference 10 4nch expenses that in dis
New York legislature Of January D., lHIi, surgr-
tion mad" that til" federal government il bound
to redeem every portion of its issue which th" public
dN not wish tO use. Having assumed To monNnolilr
the supply Of currency. aud enacted exclusion;
against everybody else, it il bound to furnish nlI
which the wants of business require. The system
shur'd pas-iycly allow the yollm" Of circulating
credits To- rIl and flow arcurding to the ever chang
ing wants Of business. It should imin" NJ closely
as possible the natural laws of trade, which it has
surrrscdrd Ly rlihcia contrivnnccs. In similar
discussion in my vt January t. ls7G II was
said that resumption shnull u" on'ctei 10y Huch
measures a. would keep the aggregate amount OF
currency self adjusting during all the process with
| out creating, at any time; an 9rthrbl scarcity,
without exciting the public imagination with
alarms which impair confidence and distract largely
tha whole machinery Of credit and disturb the nat
| urnl operations oi business.
RESERVES AND REDEMPTIONS.
| Public economies official rctrcnChmcnt4 and n
| wise hnanro are the means which the St. Louis
convention indicates as the provision for reserves
| and rrhpmptiunE. The best resource lEH f'dn'tiun
in rx rcucs rf the government hclow It's income, for
| that imposes new charge on the rcop". IT, how
| ever, the mrrnNii"ncr and waste Whlch nv" con
ductcd us to pcri" Of falling revenues ohg" us to
| supplement the results of economics and r"trrtch'
mcnts hy som" resort to loans "" should not hosi-
| tate The government Ought not tn speculate" on
is avn Ii,onor in order to save the interest its
| broken proms <, which II still comnells priyat"
| dealers to accept at u fictitious rnr. The highest
national honor II not only right nut would prove
| profitable.
REDUCTION OF INTEREST.
| Or the puhIc debt nino hundred aud eighty five
million dollars bear ncieant six per cent in gold,
and sNty-hyc millions ut hve per cent in gold the
,ErraT" IHl"r"s, rs iLS & gr.t TE Srt Credit Wi avocG
| Of ought gradually to obtain REDUCTION Of on" per
cent. in th" interest on most "i the loans Saving
rf one prr cent. un the average would hc seventeen
| million dollars u wear in gold. That saving, r"gu-
| inrly invested at fnur aud half per cent would,
In loss than thirty eight years, "Ntingnsl III" rrn-
| riraI The whole seventeen hundred millions of
The funded debt might bo paid hy this SAVING alone,
| without cost to th" neopl'.
THE TIME FOR RESUMPTION.
The proper time for TrInmpton Is lhG M time When
Wa thn ".ct viii cdrtoiny and
| ease, that will inspire cnnhd"nc" ami ehc"nrhE"
revival Of hnsiE"I1 Ih" GHr"t , 1l"G n ". T,.m .m
| when preparations shall have been maturrh, the
| exact date would have to hc chosen WIN r"i"rrnc"
n the then existing state Of trace. and the credit
| sheet of operations in our country, the course ot
| foreign commerce. aud the condition Of our cN-
| changes, with other nations
SPECIFIC MEASURES.
The sp,cifc measures and actual dat arc matters
rf I,tai having reference IT, the "ver.chHnging
| rnnditnns They belong tn TIA" domain oi practical
| administrative .tatrmanshlp. TIL" captain ni q
| steamer about To- -ail from New York To Liverpool
Inos uot assemble y counsel ever Ills ocean chart
| and fix an angle ly which Ia lash the rud1er for
| whole vuyarc. Human intelligence must he at th"
holm To discern the shifting forces of the waters
| and winds u human hand must hc vt the helm tn
feel the elements day 10y day, and guide To maSt"-
| nv over them such Preparations are everything
! without them legislative command hNing day
| an onicial promise fixing day are shams. They
| re- a and to- all who